Treasurer Scott Morrison has questioned why Labor wants foreign workers to pay a lower rate of tax than Australians while opposing tax cuts for small business.
The Senate on Thursday rejected the government's plan for a 19 per cent income tax rate on working backpackers, opting instead for a 10.5 per cent rate from the first dollar earned.
"Why do (Labor) want Australian small businesses to pay higher rates of tax than they do in New Zealand, than in Korea, than in Malaysia, than in Singapore, than in the United Kingdom, and ultimately in the US?" Mr Morrison said during a fiery question time in the lower house.
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