Andrew Gee (Calare, National Party) Share this | Link to this | Hansard source

My question is to the Deputy Prime Minister and Minister for Agriculture and Water Resources. Will the Deputy Prime Minister explain to the House why it is important for hardworking Australian farmers and workers that the parliament passes the 19 per cent tax rate for backpackers?

Barnaby Joyce (New England, National Party, Leader of the Nationals) Share this | Link to this | Hansard source

I thank the honourable member for his question. Might I say, right from the very start, that when the rate was at 32½ per cent, we put money on the table—$40 million on the table—for a time—

Ms Chesters interjecting—

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

The member for Bendigo is warned.

Barnaby Joyce (New England, National Party, Leader of the Nationals) Share this | Link to this | Hansard source

to make sure that we could negotiate a better rate. And then after discussions with the NFF, the VFF, farmers in the Northern Territory and the tourism accommodation sector, everybody agreed on a 19 per cent rate. Not only was the 19 per cent rate fair; a 19 per cent rate also reflected something that was saleable to Australian workers working in the same field. And now we have this ridiculous proposition: the member for Maribyrnong is going to punish Australian workers by having somebody working beside them on a half to a third of the tax rate doing exactly the same job. The member for Maribyrnong believes that Alberto from Milano, when he goes to work in a pub in Dorrigo and after he has had a torrid six months surfing, comes back, does exactly the same job as Brad from Bostobrick. The trouble is that Brad from Bostobrick is on twice the tax rate annualised over the year and, for the period of time he is there, he could be on three times. What do you say to those Australian workers when they know that they are being done over by you; and where are you getting your economic advice from? Senator Jacquie Lambie.

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

The Deputy Prime Minister will resume his seat.

Opposition members interjecting—

Ms Chesters interjecting—

Mr Fitzgibbon interjecting—

Members on my left. The member for Bendigo has been warned. The member for Hunter is now warned. The Manager of Opposition Business on a point of order.

Mr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

On two matters, Mr Speaker. One, I thought it was in his interest to take a breath, but, secondly—

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

The Manager of Opposition Business has latitude, but it is not as extensive as I think he assumes.

Mr Tony Burke (Watson, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

Comments should be directed through the chair and his use of the word 'you', I do not think was meant to be directed at the Speaker.

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

I thank the Manager of Opposition Business for defending the office of the Speaker. The Deputy Prime Minister has the call.

Barnaby Joyce (New England, National Party, Leader of the Nationals) Share this | Link to this | Hansard source

So what we have now is that the Labor Party is playing one game and it is political bastardry. They are playing a game—

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

The Deputy Prime Minister—

Barnaby Joyce (New England, National Party, Leader of the Nationals) Share this | Link to this | Hansard source

I withdraw—they know what they are doing. Do you honestly believe that the Australian Labor Party believes that the best form of economic advice they can get, rather than from the member for McMahon, is from Senator Jacqui Lambie from Tasmania? Is that now the vessel—the economic light—of the Labor Party?

Why are they doing this when they went to the election proposing a 32½ per cent tax? Why did they go to the election with a 32½ per cent per cent tax and now they are proposing a 10½ per cent tax for no other reason than to destroy the deal that is done so that we can start work and start getting the fruit off the trees? Are these the sorts of actions of a prospective leader of our nation that they would do something like this? It is the absolute height of hypocrisy that someone could say something like that and then say that his mantra is looking after Australian jobs and looking after Australian workers. All we see now is someone who is an immense disappointment, because when he had the chance to stand up, when he had the chance to be decent, he could not help it but just be what he is.

Mr Brian Mitchell interjecting—

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

The member for Lyons will leave under 94(a).

Jim Chalmers (Rankin, Australian Labor Party, Shadow Parliamentary Secretary to the Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Treasurer. Given no Australian worker pays any tax on the first $18,200 of earnings, isn't it the case that under Labor's sensible backpacker tax proposal, there is no income level at which Australians would pay more tax than working holiday-makers? Why is the government misleading the Australian people?

Honourable members interjecting —

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

The Treasurer will resume his seat. I am going to ask the member for Rankin to come back. I was finding it difficult to hear the question for an obvious reason that I will not keep repeating.

Honourable members interjecting—

The member for Barker is warned. The Leader of the House will cease interjecting. The member for Mackellar will cease interjecting. The member for Rankin will repeat his question.

Jim Chalmers (Rankin, Australian Labor Party, Shadow Parliamentary Secretary to the Leader of the Opposition) Share this | Link to this | Hansard source

Thank you very much, Mr Speaker. My question is to the Treasurer. Given no Australian worker pays any tax on the first $18,200 of earnings, isn't it the case that under Labor's sensible backpacker tax proposal there is no income level at which Australians would pay more tax than working holiday-makers? Why is the government misleading the Australian people?

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for his question. The member might like to sit next to the shadow Treasurer and remind him what the tax-free threshold is. He will recall that, when he had an interview with Alan Jones some time ago and he was asked to nominate what the tax-free threshold was, he was all at sea. He might want to go down there and have a chat to the member for Lilley's apprentice and refresh himself on the tax-free threshold.

Honourable Members:

Honourable members interjecting—

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

The member for Solomon is warned.

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

Our ambition for young Australians, and particularly those working in regional areas, is that they earn a bit more than $18,200, that they are able to work throughout the entire year. If an Australian were to work throughout the entire year alongside a foreign backpacker working in Australia, in comparison the Australian would be paying on average $132.65 per week in tax but the foreign worker standing next to them would be paying $99.75 a week. I asked in the House yesterday what union those opposite were members of. Maybe they are members of the foreign workers union, because they are the interests that they are seeking to represent in this place. Those opposite think it is a better idea for small businesses to pay higher rates of tax in this country by refusing to support the government's proposal to extend the threshold for small business up to $10 million a year, where they will pay 27.5c in the dollar in tax, where they will get access to the instant asset write-off and where they will get access to the depreciation pooling provisions.

Mr Hill interjecting—

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

The member for Bruce is warned.

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

That is what we are proposing to do, and those opposite are opposing it. Instead, they come into this place and say, 'Give foreign workers a tax cut,' and ask every Australian worker paying income tax to foot the bill for $500 million. They went to the last election saying that if they were elected they would come up with a plan that cost exactly the same as the government's. The shadow Treasurer put that in his forward estimates. Well, he lied on the basis of what he has put forward here.

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

The Treasurer will withdraw that word.

Scott Morrison (Cook, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I withdraw, Mr Speaker.