Backpacker tax threat to Mal’s majority

CONTROVERSIAL MP George Christensen has threatened to blow up the Turnbull Government by quitting the Coalition if the unpopular backpacker tax is not dumped.

In a move that could mortally wound the Turnbull Government, the Queensland MP has revealed he could not support a policy that endangered the livelihoods of farmers, regional areas and the tourist industry. The Sunday Territorian can reveal that before the election, Mr Christensen told locals in his Dawson electorate that he would quit the LNP if the tax remained.

Asked if he held the same view now, despite the Government having a majority of one, Mr Christensen said he would stay true to his word – but believed it was a moot point.

“I believe the Government is going to axe the backpacker tax and put in place arrangements that farmers can accept,’’ said the chief Nationals whip, who with a handful of other backbenchers, was instrumental in forcing Treasurer Scott Morrison to back down on his unpopular super- annuation changes.

“I’m not trying to destabilise but I was that confident such a change will occur that I gave that commitment to locals when I was asked about it before the election.”

Mr Christensen reiterated that the Government, especially Acting Prime Minister Barnaby Joyce, had not been deaf to industry groups who had railed against the measure.

The policy scraps the $18,200 tax-free thresholds for many foreigners holidaying and working in Australia, which gifts a cash-strapped Government $540 million by 2020. It meant foreign fruit pickers, farm hands and hospitality workers – many who do jobs in regional areas that Australians refuse to do – would be

“I gave that commitment to locals when I was asked”

charged the second marginal tax rate of 32.5¢ in every dollar. Industry groups have warned some horticultural sectors would struggle to find workers.

The Sunday Territorian can reveal that after Mr Morrison and Revenue Minister Kelly O’Dwyer revealed their superannuation changes to a joint partyroom, they were quickly quizzed on the backpacker tax.

“They (Morrison and O’Dwyer) were talking about their super changes and then they were asked about the backpacker tax,’’ a source said.

“One of them said they could not get five minutes of sunshine or something along those lines.”

The NT News reported last month that backpackers were already starting to give the Territory a miss in the face of planned tax changes that will see them hand over a third of anything they earn in Australia to the government.

The latest International Visitor Survey by Tourism Research Australia showed backpackers visiting the Northern Territory dropped from 95,000 in the year ending June 2015 to 86,000 last financial year.