Mallee MP Andrew Broad blasts Treasurer Scott Morrison over backpacker tax

Mallee Nationals MP Andrew Broad launched a stunning volley at his city Coalition teammates just hours after Mr Morrison announced the proposed tax on working travellers would be lowered from 32.5 cents to 19c on the first dollar earned. Previously, overseas travellers on 417 and 462 visas did not pay tax if they earned below the $18,500 threshold.

Mr Broad - who called for the 19 cent compromise back in May - said it was a “sensible landing”, but it took too long to get there.

“There has been a complete misunderstanding by the Treasurer and Assistant Treasurer,” Mr Broad said. “Now it would be good if they came out and visited the regions and see how it works.”

Mr Morrison had not responded to Mr Broad’s comments at time of print.

Seasonal fruit picking and farm work jobs are essential to the economy in Western Victoria - as they are in much of regional Australia - and it was the rural sector that cheered the loudest after Mr Morrison’s backflip on Tuesday. These groups included the National Farmers Federation and the various state bodies, as well as grower groups AUSVEG, Growcom, Australian Dairy Farmers, and Cotton Australia.

Mr Morrison essentially took on the 32.5 per cent proposal when Prime Minister Malcolm Turnbull named him treasurer 12 months ago. Mr Morrison defended the plan up until May, the same month Ms O’Dwyer announced it would be reviewed.

Cowper Nationals MP Luke Hartsuyker, who took charge of the review, denied the policy backstep had heightened tensions within the Coalition.

Deputy PM Barnaby Joyce also batted away suggestions of bad blood, with reporters asking why he had held a separate press conference to Mr Morrison on the day of the announcement.

Other measures in the new tax package include a reduced visa application charge by $50 to $390, extending the age of eligibility from 30 to 35, and allowing someone work for the same employer for 12 months, but no more than six months in the one location.

The revenue shortfall will be made up by a $5 increase on the Passenger Movement Charge for departing travellers.