Finance Finance News Backpacker tax: Scott Morrison announces 15 per cent tax rate agreed to
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Backpacker tax: Scott Morrison announces 15 per cent tax rate agreed to

backpacker tax
Mr Morrison was scathing of the Labor Party in his announcement. Photo: Getty
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Federal Treasurer Scott Morrison has announced the Coalition has agreed to a 15 per cent backpacker tax.

The government had initially floated a 32.5 per cent backpacker tax, however this has been negotiated down to 15 per cent.

“Today the Government will be working to put in place a bill which will propose 15 per cent on the backpackers’ arrangement,” Mr Morrison told reporters on Monday morning.

“We will honour the arrangement that we’ve come to with Senator Nick Xenophon and we appreciate his continued support on this, as well as Senator Derryn Hinch.

“That means this week hopefully even today, this matter is resolved.”

The government will seek to pass the backpacker tax at 15 per cent after losing a vote on a 19 per cent proposal for working holiday makers in the Senate last week.

Labor, the Greens and cross benchers voted in favour of a 10.5 per cent rate, but the coalition used its numbers in the lower house on Thursday to reject this and ping-pong the bill back to the Senate.

One Nation leader Pauline Hanson said if the government did not compromise, farmers and other industries reliant on a strong horticultural sector would suffer.

Labor leader Bill Shorten said his party was also up for “sensible compromise”.

Mr Morrison claimed the budget would be $120 million worse off due to the agreed lower tax.

– with AAP

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