By Jeremy Sollars
THE backpacker tax is back in limbo after the Senate snubbed a deal between One Nation and the Turnbull Government for a 15 per cent tax and reduced it to 10.5 per cent today, Wednesday 30 November.
The Labor amendment to reduce the rate was passed 35 votes to 32, and had the backing of the Greens, Derryn Hinch, Jacqui Lambie, David Leyonhjelm and One Nation’s Rod Culleton, who again split with the rest of his party.
It is a hugely embarrassing turn of events for the Turnbull Government, which on Monday backed down from its proposed 19.5 per cent rate and trumpeted a deal with One Nation for a compromise position of 15 per cent.
Nationals leader Barnaby Joyce gathered his entire party room for a press conference to declare the issue “fixed“, while deputy leader Fiona Nash said: “We now have a 15 per cent rate. It’s a good outcome.”
Treasurer Scott Morrison said the government had “got together with other adults in the room” to strike a deal and that: “It doesn’t matter what the Labor Party thinks now … frankly the Labor Party can go and take a flying leap.”
But in a surprise decision, the Labor amendment received enough Senate support to pass and means the amended bill will now return to the House of Representatives, where the government will have to decide whether to accept the lower tax rate.
It is unclear at this time when the House of Representatives will vote on the amendment with tomorrow, Thursday 1 December, being the last parliamentary sitting day of the year.
Updates to follow online.
