Malcolm Turnbull has lost the plot by bizarrely claiming Labor believes “rich white kids from Europe should pay less tax than Pacific Islanders working here to send money back to their villages.”
TURNBULL - ABC AM – 1 DECEMBER 2016
This is a lie.
Under the tax rules for backpackers, 95 per cent of their compulsory super contributions are claimed by the Government when they leave Australia.
The combination of super tax and the tax rate means the effective tax rate for backpackers under Labor’s compromise of 10.5 per cent is higher than for the Seasonal Worker Program, as these workers are not subject to the same superannuation clawback arrangements.
In addition, under Labor’s 10.5 per cent compromise, there is no income level at which someone on a working holiday visa pays less tax than an Australian worker.
While the Prime Minister is usually an expert when it comes to rich people and the tax they pay, he’s been caught lying today.
The Prime Minister is unhinged – the cracks over his backpacker tax disaster are beginning to show.
Under the Liberals, the backpacker tax:
• Went from zero per cent to 32.5 per cent in the 2015 Budget;
• Then to 19 per cent after a Malcolm Turnbull’s backbench revolted;
• Then to 15 per cent after the crossbench rolled the Government; and
• Is now back at 32.5 per cent after the Turnbull Government lost a second vote in the Senate.
There is no one else to blame but Malcolm Turnbull and Barnaby Joyce for the backpacker tax debacle they find themselves in.