Bill Shorten (Maribyrnong, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. Today, the Senate has delivered a humiliating defeat to the government on the backpacker tax. Will the Prime Minister now accept the sensible compromise offered by the Senate, or will the Prime Minister instead confirm that, because of his government's actions and budget incompetence, Australia will have an internationally uncompetitive 32½ per cent backpacker tax from the beginning of next year if the Prime Minister cannot compromise?

Government Members:

Government members interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

Members on my right! The member for Corangamite will cease interjecting.

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

The only reason backpackers would pay 32½ per cent tax is because the Labor Party refuses to support the 19 per cent tax levy.

Opposition Members:

Opposition members interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

Members on my left!

Malcolm Turnbull (Wentworth, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

That 19 per cent tax rate will reduce the level of tax that would otherwise be paid by nonresidents, which is precisely what the backpackers are. That is up to the Labor Party. They could support that. They are the ones that are going to ensure, if they have their way, that backpackers are paying 32½ per cent, because they are nonresidents and because the ATO has ruled that they are nonresidents. This is a plain act of economic vandalism by the Labor Party. It is a plain act of undermining Australian businesses—Australian horticultural businesses, Australian tourism businesses.

The Labor Party has no shame. They have the gall to come in here and talk about the AAA rating and talk about economic responsibility, when what they want to do is reduce the level of tax that backpackers pay, apparently, to one that is even lower than that with the marginal rate which an Australian would pay. And they talk about protecting Australian jobs!

What we are doing is supporting a sustainable rate of tax for backpackers, and we ask the Labor Party, again, to act responsibly and to act in the interest of Australians and support that rate.

Tony Smith (Speaker) Share this | Link to this | Hansard source

Before I call the next question, the level of interjections was far too high. I considered asking the Prime Minister to momentarily resume his seat while I dealt with some people. I will not put up with that level of noise; it disrupts the House. I am warning now the members for Jagajaga, Shortland, Lyons and—I have Jagajaga twice. There you go! That is the final warning.