The federal government is set to introduce a 15% backpacker tax after treasurer Scott Morrison announced that a compromise has been reached with crossbenchers.
The Coalition had already reduced its original 32.5% rate to 19% but was negotiating with senator Jacqui Lambie’s proposed 10.5%, which had gained support from Labor, One Nation and the Greens.
Morrison said the reduced rate would cost the federal budget $120 million over four years and he accused Labor of being responsible for delaying a resolution.
“Frankly the Labor Party can go and take a flying leap,” he said.
“This matter has gone through needless difficulty because of the bloody mindedness and the political game machine playing of the Labor Party which we see writ large every single day.”
The backpacker tax debate has been going for 18 months but reached a climax this weekend when Nationals MP Andrew Broad broke ranks and called for a 15% rate.
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