No more compromise on backpacker tax, says Joyce

Deputy Prime Minister Baranby Joyce is playing down speculation the government could compromise further on the backpacker tax rate.

Fruit picking in Victoria

A worker harvests grapes by hand in Victoria. Source: Getty Images

The Turnbull government is playing down speculation of a further compromise on its backpacker tax, accusing Labor of wanting to "blow the show up".

But the opposition says it's the government's that's being bloody-minded.

Deputy Prime Minister Barnaby Joyce argues the government has already compromised by cutting its original plan for a 32.5 per cent tax to a rate of 19 per cent.

A vote in the Senate is likely on Thursday.
Labor, along with One Nation, is backing a move by independent senator Jacqui Lambie to set the rate at 10.5 per cent of the first dollar a working holidaymaker earns.

"The reason they agree with it is not because they want a solution, they want to create an act of political bastardry to blow the show up," Mr Joyce told ABC radio.

Independent Derryn Hinch, who is backing the government, has heard rumours about a 15 per cent compromise.

"I would hope the the Labor party would say 'look, 19 per cent is a bit worse than 15 but at least we'll get something in and then lower it later on when, if they get into government'," he told reporters.

But Mr Joyce says the coalition has already done the hard yards.

"We know how the Labor party would play: if we said 14 they would say eight, if we said eight they would say two, if we say two they would say zero, if we said zero, they would say 'no you've actually got to ... pay them more money'."
Shadow treasurer Chris Bowen said the government was being bloody-minded.

"This has been a debacle from beginning to end," he told ABC radio.

Nationals MP George Christensen, a fierce opponent of the first tax proposal, said dropping the rate had solved the problem and there was no need to go lower.

Senator Nick Xenophon and his two NXT colleagues also support the 19 per cent rate, on the proviso unemployed Australians are able to earn up to $5000 for seasonal work without losing welfare benefits.

Liberal Democrat David Leyonhjelm will support either a zero or 10.5 per cent rate, but not the government's 19 per cent.

He also disputes the government's claims a court ruling means if legislation is not passed all backpackers will be taxed at 32.5 per cent.


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Source: AAP


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