Another twist in backpacker tax negotiation

December 01, 2016

Senator Derryn Hinch voted with Labor and the Greens to reject the 15 per cent rate.

Senators Derryn Hinch and Rod Culleton yesterday threw a spanner in the works over the government’s 15 per cent backpacker tax, voting for a 10.5 per cent rate.

The Coalition thought it had reached a deal with crossbenchers for a 15 per cent rate, coming down from its initially budgeted 32.5 per cent rate and a further compromise of 19 per cent.

But Senators Hinch and Culleton voted with Labor, the Greens and crossbenchers Jacqui Lambie and David Leyonhjelm to reject the 15 per cent rate.

Senators Hinch and Culleton, who is a member of the One Nation party room, previously voted for the 19 per cent rate.

Treasurer Scott Morrison said the government would not bring on the backpacker tax bill for another vote in the Senate until it could get a ‘‘clear commitment’’ it would pass at a rate of 15 per cent.

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