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Backpacker tax passes Senate with Greens support

By rural reporter Anna Vidot and political reporter Henry Belot

Updated December 02, 2016 07:14:04

Maa car insurance panel workshop Photo: Malcolm Turnbull said the last-minute deal was "proof the Government was delivering on its promises". (ABC News: Naomi Woodley) Related Story: Crossbenchers call for new backpacker tax compromise Related Story: On the harvest trail to find areas most affected by backpacker tax debate Map: Australia

The backpacker tax has passed the Senate after the Greens agreed to a deal to support the Coalition's preferred 15 per cent backpacker tax rate in exchange for significant concessions from the Government.

Key points:

  • Government looks set to pass 15 per cent backpacker tax
  • Landcare to get extra $100 million as part of Greens deal
  • Government scraps its plan to tax 95 per cent of backpackers' superannuation, reduces it to 65 per cent

The Upper House approved the motion 43 votes to 19, bringing 18 months of uncertainty to an end.

In exchange for the Greens' support, the Government has agreed to scrap its plan to tax 95 per cent of backpackers' superannuation.

Instead, that rate will be set at 65 per cent.

The Coalition will also chip in an extra $100 million in Landcare funding under the last-minute deal.

The Opposition condemned the deal as "arrogant".

External Link: @Barnaby_Joyce tweet: Credit where credit is due. Thanks to the Greens for doing what Labor should have done

Before the Senate vote, Prime Minister Malcolm Turnbull said the last-minute breakthrough was proof the Government was delivering on its promises.

"What that has done is provide security and assurance for farmers and many industries across Australia," he said.

"I want to thank [Greens leader] Richard Di Natale and the Greens for their support and also the continuing support in the Senate of Pauline Hanson's One Nation and of course, the Nick Xenophon team."

Deputy Prime Minister Barnaby Joyce and Treasurer Scott Morrison both thanked the Greens for their support.

"We have the Greens making sure the cherries are picked at Young," Mr Joyce said.

'Coalition of the unwilling'

Senator Di Natale said the outcome was a "commonsense victory for farmers" and the environment.

"We don't agree with this Government on many things, but in the end our responsibility in this place is to the community that we serve," Senator Di Natale said.

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New research predicts Australia's multi-billion-dollar tourism and agriculture industries will suffer significantly.

"Ultimately what we faced was going away from this place with regional Australians being sent to the wall and we weren't going to let that happen."

Shadow Treasurer Chris Bowen said the Government had formed a "coalition of the unwilling" with the Greens and accused the Treasurer of "arrogance and incompetence".

"Scott Morrison is so determined not to give in to this side of the House that he has done a deal with the Greens, which is worse for the budget than a deal with us would have been," he said.

Labor MP Tony Burke said the deal would hurt the budget bottom line and was likely to raise concerns within the Coalition party room.

"Does anyone think the Member for Warringah [Tony Abbott] won't know the significance of what is in front of us?" he said.

Superannuation backdown a win for farmers

The superannuation concession is seen as a significant move.

Austin 7 chummy car insurance Photo: The Government has agreed to scrap its plan to tax 95 per cent of backpackers' superannuation. (ABC News: Eliza Rogers)

The Government's plan to claw back 95 per cent of the superannuation paid to backpackers was introduced without prior consultation in the Coalition's first compromise package, announced in September.

Many farmers were surprised and dismayed by the decision, which they feared would compound higher backpacker tax rates and dissuade foreign tourists from working on Australian farms.

Farmers across the country had called on the Parliament to support a 15 per cent backpacker tax this week, to avoid the enforcement of a 32.5 per cent tax from the start of the new year.

National Farmers' Federation president Fiona Simson welcomed the deal with the Greens and said farmers had been calling out for the Parliament to provide certainty.

"It is extremely rewarding that this package is on the table," she said.

Topics: government-and-politics, tax, farm-labour, australia

First posted December 01, 2016 15:43:15

Contact Anna Vidot


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So long as you are currently in the UK, the Channel Islands or Isle of Man.

Cover However Fast You're Looking to Get To Your Destination

Whether you're looking to cover your camper van, motorhome, small car or something a little more sporty, we have the policy for you. With DUInsure, you can cover vehicles up to 6000cc

Looking for Adventure Travel Insurance?

We cover over 60 adventure activities & sports for as standard when you purchase a travel insurance product from us.

Worried that your vehicle might be too expensive to cover?

We cover vehicles valued up to £55,000 - which includes the vast majority of motor vehicles on the road.

Overseas Work covered

Ideal for backpackers looking for travel insurance for working abroad - our work abroad insurance covers a range of backpacker work. (this doesn't cover certain manual work such as farm work that requires the use of quad bikes, helicopters or light aircraft, but you'll be covered for a wide range of other work)

Please refer to the definition of Manual Labour as contained in the Policy Wording.

A little something extra on the side..

We appreciate you trusting us with your car, motorhome or camper van insurance, so we want to give something back to you. That's why we offer 10% discount on travel insurance for all motor policy holders.

Looking to avoid paying excess if you do have to claim?

We offer an excess waiver option so you can avoid paying this.

.. and if you get stuck on the side of the road

We offer trusted motor breakdown cover for the UK & Europe.

Please check full terms and conditions to see the limitations on cover.

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