At the end of the last sitting week the Government has snuck out yet another tax backflip which impacts rural and regional Australia.

The Government announced changes to the Wine Equalisation Tax Rebate in the 2016 Budget. Like the backpacker tax, it was forced on the sector and regional economies without any modelling or consultation.
Now, after backing down on the backpacker tax - from 32.5 per cent to 19 per cent and then to 15 per cent - today we see another backflip.
The Government's original package managed to upset just about everyone in a diverse sector with a range of tax positions including small cellar-door producers who would have been locked out of the rebate system.
Labor welcomes the back down and will examine the detail of the new package.
The Government should now detail what the budgetary impacts of this backflip are, given we saw the last backflip cost the Government an extra $100 million for an uncompetitive tax rate.
Labor does not want another backpacker tax and Passenger Movement Charge situation where a tax back down is paid for via another tax impost on the same sector.

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