Senate debates

Thursday, 24 November 2016


Income Tax Rates Amendment (Working Holiday Maker Reform) Bill 2016, Treasury Laws Amendment (Working Holiday Maker Reform) Bill 2016, Superannuation (Departing Australia Superannuation Payments Tax) Amendment Bill 2016; In Committee

1:14 pm

Photo of Peter Whish-WilsonPeter Whish-Wilson (Tasmania, Australian Greens) Share this | Hansard source

by leave—I move Australian Greens requests (1) and (2) together:

(1) Schedule 1, item 6, page 5 (line 15) omit "on $37,000 of that salary,", substitute "for the part of that salary exceeding the tax-free threshold but not exceeding $37,000,".

(2) Schedule 1, item 7, page 5 (table item 1), omit the table item, substitute:

Statement pursuant to the order of the Senate of 26 June 2000

These amendments are framed as requests because they are to a bill which imposes taxation within the meaning of section 53 of the Constitution. The Senate may not amend a bill imposing taxation. These amendments should therefore be moved as requests.

Statement by the Clerk of the Senate pursuant to the order of the Senate of 26 June 2000

As this is a bill imposing taxation within the meaning of section 53 of the Constitution, any Senate amendment to the bill must be moved as a request. This is in accordance with the precedents of the Senate.

I have already spoken today so I will not say any more except to say, very simply, that these amendments amend Senator Lambie's amendment. It essentially aligns the 10.5 per cent tax rate with $18,200 so that on the first dollar earned as a backpacker you pay 10.5 per cent up to $18,200—the same as the tax-free threshold for Australian residents. Above $18,200, to $37,000, you pay 19c in the dollar—the same as an Australian resident. So this essentially takes it to 10.5 per cent to $18,200, which we feel is fairer, given that above $18,200 Australian workers would be paying the same tax rate as foreign workers. We see Senator Lambie's amendment as being problematic because 10.5 per cent above $18,200 does at least appear to allow foreign workers to have a lower tax rate than Australian workers. So we believe it should be 10.5 per cent for the first $18,200 and above that it should be 19c in the dollar.


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