Mr MORRISON (Cook—Treasurer) (14:48): I thank the— The SPEAKER: The Manager of Opposition Business will resume his seat. On this last day, I am not going to go right through the longstanding practice with regard to Prime Ministers referring questions to ministers. Mr Burke interjecting— The SPEAKER: Manager of Opposition Business will cease interjecting. Mr MORRISON: I thank the Prime Minister for the opportunity to respond. Those opposite have asked about the backpacker tax and what is important to understand, as I was referring to in my earlier response in the House, is why the rate is at 32½c. I go back to the 2012-13 budget that was delivered by the member for Lilley. In that budget it refers to the fact that the then Labor government will adjust the personal income tax rates and thresholds that apply to nonresidents' Australian income. From 1 July 2012, the first two marginal tax rate thresholds will be merged into a single threshold. The marginal rate for this threshold will align with the second marginal tax rate for residents—that is, 32½ per cent. That is what it said in the 2012-13 budget. And what the government had sought to do—given that case law had demonstrated that backpackers were nonresidents for tax purposes, which is the standing arrangement under the case law now—is that the 32½ per cent rate, set by the member for Lilley under the Labor government, is the rate of tax that they will pay. Dr Chalmers interjecting— The SPEAKER: The member for Rankin has been warned. Mr MORRISON: We sought to introduce that in the legislation and, as those opposite at the last election also promised to do by setting that 32½ per cent rate in their forward estimates, but we then sought to compromise and worked to an arrangement that was reasonable and fair and we put forward 19. That was not accepted by the One Nation party and others, and we came to a reasonable position on 15 per cent, which is the seasonal-worker tax rate—at 15 per cent. That is what we have put forward. Now those opposite, first of all they wanted zero. Then, they wanted 10½. The member for Lilley set it at 32½ and now they have come up with a rate of 13. And I will tell you that one thing they did on none of this is that they did not support or put forward any way that these measures could be funded—they did not support the passenger movement charge increase and they spoke against the changes on superannuation when it came to backpackers. So what they were saying is that they wanted foreign workers to pay a lower rate of tax and they wanted to send the bill to Australian workers. That is what they wanted to do. They wanted a higher tax rate on small business, they wanted Australians to continue to pay higher rates of tax, but they wanted foreign workers to pay a lower rate of tax. The government has put a very sensible and reasoned proposition on the table. Those opposite, as a result of their failure to come and see what is a reasonable position, will ensure that the member for Lilley's 32½ per cent rate lives on and on and on.