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

My question is to the Prime Minister. Since being elected Prime Minister, the Prime Minister has been willing to back down on everything that he has ever believed in. Why won't he back down on the backpacker tax and fix this mess before parliament rises today?

Government Members:

Government members interjecting—

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

Members on my right. The member for Hughes.

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

I thank the—

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

The Manager of Opposition Business will resume his seat. On this last day, I am not going to go right through the longstanding practice with regard to Prime Ministers referring questions to ministers.

Mr Burke interjecting—

Manager of Opposition Business will cease interjecting.

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

I thank the Prime Minister for the opportunity to respond. Those opposite have asked about the backpacker tax and what is important to understand, as I was referring to in my earlier response in the House, is why the rate is at 32½c. I go back to the 2012-13 budget that was delivered by the member for Lilley. In that budget it refers to the fact that the then Labor government will adjust the personal income tax rates and thresholds that apply to nonresidents' Australian income. From 1 July 2012, the first two marginal tax rate thresholds will be merged into a single threshold. The marginal rate for this threshold will align with the second marginal tax rate for residents—that is, 32½ per cent. That is what it said in the 2012-13 budget. And what the government had sought to do—given that case law had demonstrated that backpackers were nonresidents for tax purposes, which is the standing arrangement under the case law now—is that the 32½ per cent rate, set by the member for Lilley under the Labor government, is the rate of tax that they will pay.

Dr Chalmers interjecting—

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

The member for Rankin has been warned.

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

We sought to introduce that in the legislation and, as those opposite at the last election also promised to do by setting that 32½ per cent rate in their forward estimates, but we then sought to compromise and worked to an arrangement that was reasonable and fair and we put forward 19. That was not accepted by the One Nation party and others, and we came to a reasonable position on 15 per cent, which is the seasonal-worker tax rate—at 15 per cent. That is what we have put forward. Now those opposite, first of all they wanted zero. Then, they wanted 10½. The member for Lilley set it at 32½ and now they have come up with a rate of 13. And I will tell you that one thing they did on none of this is that they did not support or put forward any way that these measures could be funded—they did not support the passenger movement charge increase and they spoke against the changes on superannuation when it came to backpackers. So what they were saying is that they wanted foreign workers to pay a lower rate of tax and they wanted to send the bill to Australian workers. That is what they wanted to do. They wanted a higher tax rate on small business, they wanted Australians to continue to pay higher rates of tax, but they wanted foreign workers to pay a lower rate of tax. The government has put a very sensible and reasoned proposition on the table. Those opposite, as a result of their failure to come and see what is a reasonable position, will ensure that the member for Lilley's 32½ per cent rate lives on and on and on.

Joel Fitzgibbon (Hunter, Australian Labor Party, Shadow Minister for Agriculture) Share this | Link to this | Hansard source

My question is to the Deputy Prime Minister. What will be the consequences for rural and regional Australia of a 32½ per cent backpacker tax?

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

He leads with his chin. Every time you let him off the leash, he gives you problems; he gives you big problems. So I am going to quote from Fiona Simson again. Here it is—this is 1.28 pm, 1 December; that is pretty close: 'Incorrect; 13 per cent is your position, Mr Fitzgibbon. I support,' says the president of the NFF, '15 per cent or a rate that parliament decides. I urge parliament to get the job done.' So this is it—

Mr Shorten interjecting—

Once more, we have the Leader of the Opposition in here and on his first question he has said something which does not reflect the truth of what was said. Yet, still, he sits there with that smarmy look on his face and says, 'I can get away with it,' because it is all a game for the Labor Party. It is all a game about what happens in regional Australia. It does not matter what happens to those people. It does not matter what happens in the regional towns. It is just the numbers. It is just so they can blow the show up. It is all about them blowing the show up. It is the same type of person that follows the trait, and that is how the same person could let down the workers at Chiquita Mushrooms. That is how the same person could let down the people at Cleanevent. That is how the person could do a deal at the backdoor with McDonald's. It is the same way he actually made sure he got rid of Prime Minister Kevin Rudd and then he got rid of Prime Minister Julia Gillard, so he could get himself into that chair. It was always about the Leader of the Opposition, the member for Maribyrnong. It was always about him—and here is his class 1 clown friend.

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

The member for Hunter on a point of order.

Joel Fitzgibbon (Hunter, Australian Labor Party, Shadow Minister for Agriculture) Share this | Link to this | Hansard source

Relevance, Mr Speaker. I asked him about the consequences for rural and regional Australia of a 32.5 per cent backpacker tax. He has made no mention of it.

Government members interjecting—

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

Members on my right will refer to people by their correct titles. The Treasurer.

Mr Morrison interjecting—

Ms Plibersek interjecting—

We are all waiting for you both.

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

We are trying to correct the rate of tax that was brought about by the Australian Labor Party under the then Treasurer Wayne Swan. We have approximately two hours left to do it. And we are looking into the heart of the Labor Party. Do they honestly believe in the Australian Labor Party, the party of shearers, the party of farm workers? Do they honestly believe that it is morally right that a person from Paris is going to have a tax advantage over Australian workers? Do they honestly believe that? Have they travelled that far from their base? Is it that far in the past? Has it just turned into a political game? Don't they think it is rather absurd that the National Party has to be doing their job in the protecting Australian workers in getting a fair deal?' The reason the National Party have to protect Australian workers to get a fair deal is because the member for Maribyrnong is only worried about one job and it is his job, and he is willing to walk over prime ministers, he is willing to walk over Chiquita Mushroom workers, he is willing to put in Senator Kimberley Kitching. He is willing to do anything just as long as he is in that seat.

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

Before I call the next question, I just need to inform the House I accidentally called two from my left, when the member for Grey had jumped. So I am going to take from my right to make it up.