Time running out for backpacker tax deal

By Jeremy Sollars

CHAOS continues today, Thursday 1 December, over the backpacker tax, with Treasurer Scott Morrison saying the Federal Government will not back down from its 15 per cent tax, despite pressure from Senate crossbenchers to lower the rate.
Reports have emerged in national media that the crossbenchers – including Derryn Hinch and rogue One Nation Senator Rod Culleton – have struck a deal with the government to drop the tax to 13 per cent but the government appears to be denying this.
Today is crunch day for the tax, being the last sitting day for Federal Parliament for 2016, with farmers praying the Senate will hold the crucial vote today and resolve the matter.
The Senate has twice rejected the Bill and farmers are furious that the matter has not been resolved.
The government has consistently said that if the Bill fails, its original 32.5 per cent rate will be enforced from January.
Mr Morrison said the government does not have the support to pass the Bill at 15 per cent through the Upper House at this stage.
“That is still not the requisite eight and that means the Bill will not be returning to the Senate unless there is a different position put forward by the remaining crossbenchers who are considering this matter, to agree to the government’s position at 15 per cent,” he said.
Prime Minister Malcolm Turnbull has told the ABC’s AM radio program the government has not struck any deals at this stage.
“We are committed to the 15 per cent level. We have made no agreement with any other parties,” he said.
“But the question that should be asked … ask the Labor Party why rich kids from Europe should pay less tax than Australian kids and less tax than Pacific Islanders.”
The National Farmers’ Federation says the industry needs certainty, with growing signs that backpacker workers have decided to stay away.
NFF president Fiona Simson said farmers are under huge stress.
“Let’s reach a commonsense decision so we can put the issue to bed before they rise for the end of parliamentary year,” she said.
“Otherwise the politicians might have to pick the fruit.”
Updates to follow today.