Labor hits back at backpacker 'spin'

Treasurer Scott Morrison has introduced amendments to his so-called backpacker tax, legislation Labor will delay as it is scrutinised by a Senate inquiry.

Australian Treasurer Scott Morrison

Treasurer Scott Morrison Source: AAP

Labor is standing firm on a vow to put the controversial backpacker tax through more inquiries despite copping criticism by farmers for delaying a resolution.

The peak farmer's lobby is angered by the opposition for holding out on whether it will support the legislation imposing a 19 per cent tax rate on those on working holiday visas.

The revised tax arrangements, originally slated at the 32.5 per cent rate flagged in the 2015 budget, were introduced to parliament on Wednesday.

The National Farmers Federation is also fed up that Labor is seeking to put the bill to a Senate inquiry, which will delay its passage amid concerns about crops and a downturn in workers.

The government has also jumped on the attacks, accusing Labor of toying with the financial security of farmers, and saying there had been months and months of consultation with industry to resolve the issue.

Agriculture Minister Barnaby Joyce said Labor was simply playing politics.

"They could fix this in seven seconds if they wished to," he told parliament.

Treasurer Scott Morrison also issued a blunt warning that Australians would be forced to fork out more tax if the legislation wasn't resolved.

"Failure to pass the measures that pay for these initiatives will be saying to Australian taxpayers that they should be paying for the tax reductions for working holiday-makers," he told parliament.

But Labor says the bill must be scrutinised by a Senate inquiry because it contains two new taxes.

The package includes a 95 per cent tax on superannuation payments once working holiday-makers leaves Australia, and a $5 increase in the international departure tax from July 1, 2017 to $60 - a measure that has infuriated the tourism sector.

Those will help pay for a $50 cut to the working holiday visa application fee and a $10 million fund for ads to attract backpackers to Australia.

Labor agriculture spokesman Joel Fitzgibbon claims the NFF now accepts that coupling the two new imposts in the package makes it problematic to pass the bill so soon.

And many other farmers remain worried about the 19 per cent rate, he said.

"To put three new taxes through expeditiously - it's just unreasonable," he told AAP.

"It's just spin on steroids for Barnaby Joyce to try to now make this Labor's problem."


Share
3 min read
Published 12 October 2016 6:30pm
Source: AAP


Share this with family and friends