Amended backpacker tax heads to Senate again

Backpacker tax debate continues in Parliament.
Backpacker tax debate continues in Parliament.

A bill to reduce the backpacker tax to a 15 per cent rate passed through the House of Representatives on Tuesday.

The government’s compromised 15 per cent tax rate for backpackers could now head to the Senate, if it is introduced.

The passenger movement charge also went through the lower house. 

During the debate, Labor sought to move a suspension of standing orders over the move to increase the passenger movement charge. 

Labor continues to stand firm on its commitment of a 10.5 per cent tax rate for backpackers, saying this would be a competitive rate for international workers.

The government had initially proposed a 32.5 per cent tax for backpacks, but this was dropped to 19 per cent and then again to 15 per cent on Monday. 

Tasmanian Senator Jacqui Lambie introduced the 10.5 per cent tax into the Senate earlier in the debate. 

This week marks the last sitting week of Federal Parliament for the year.