Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

Here we have the hubris again from Senator Collins. The hubris: 'You'll wear it.' No, the Labor Party will wear this like a rose of crowns, the Greens will wear it like a rose of crowns and Senator Culleton, Senator Hinch and Senator Lambie will wear it like a rose of crowns because they will be held responsible. On offer today was a 15 per cent tax rate. Instead, the Labor Party went for the 32.5 per cent tax rate.

I understand the Labor Party is a high-taxing party. The Labor Party might still have some fondness for the Wayne-Swan-introduced 32.5 per cent tax rate for income earned by foreign workers in Australia, so maybe this is just a cunning ploy and some of these other senators have been sucked into this cunning ploy by the Labor Party. But let me be very clear: this vote today by the Senate was a vote against the farmers' best interests. Everybody knows that even at 19 per cent our tax rate here in Australia is internationally competitive. Our tax rate is internationally competitive, and holiday-makers coming to Australia are better off earning money in Australia than they would be for the same amount of money earned in New Zealand, in Canada or in the United Kingdom. Even after that—even though the 19 per cent tax rate was internationally competitive—in order to facilitate a consensus in this chamber, the government went that further step. Quite frankly, we were not all that keen to go that further step—that is a matter of record—but the Senate is now saying: 'Actually, even though there would've been a majority for 19 per cent last week, no, we're not even going to accept the lower 15 per cent. We're going to go for 32½ per cent instead.' That is what they call in the classics 'cutting off your nose to spite your face'.

But this, obviously, is now not resolved. If it does not get resolved by the Senate in a form that is acceptable to the government, it means that the 32.5 per cent Wayne Swan tax rate from the first dollar earned by nonresident foreign workers will apply, and everybody in this chamber knows that, consistent with relevant cases in the Administrative Appeals Tribunal and consistent with relevant guidance by the Taxation Office, that is actually the law of the land right now.

Question agreed to.

Report adopted.