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Backpacker tax passes Senate with a $100m string

Malcolm Turnbull... win for farmers.
Malcolm Turnbull... win for farmers. Chris Ison ROK271016cpm7

THE Federal Government has agreed to a Greens demand for $100 million in Landcare funding to get its 15% backpacker tax rate through Parliament.

The Turnbull Government has also agreed to scrap its plan to tax 95 per cent of backpackers' superannuation.

Instead, that rate will be set at 65 per cent.

Before the Senate vote, Prime Minister Malcolm Turnbull said the last-minute breakthrough was proof the Government was delivering on its promises.

"What that has done is provide security and assurance for farmers and many industries across Australia," he said.

"I want to thank [Greens leader] Richard Di Natale and the Greens for their support and also the continuing support in the Senate of Pauline Hanson's One Nation and of course, the Nick Xenophon team."

Deputy Prime Minister Barnaby Joyce and Treasurer Scott Morrison both thanked the Greens for their support.

"We have the Greens making sure the cherries are picked at Young," Mr Joyce said.

Senator Di Natale said the outcome was a "commonsense victory for farmers" and the environment.

"We don't agree with this Government on many things, but in the end our responsibility in this place is to the community that we serve," Senator Di Natale said.

Shadow Treasurer Chris Bowen said the Government had formed a "coalition of the unwilling" with the Greens and accused the Treasurer of "arrogance and incompetence".

"Scott Morrison is so determined not to give in to this side of the House that he has done a deal with the Greens, which is worse for the budget than a deal with us would have been," he said.

Farmers across the country had called on the Parliament to support a 15 per cent backpacker tax this week, to avoid the enforcement of a 32.5 per cent tax from the start of the new year.

More on this at ABC News

Topics:  backpackers backpacker tax farmers greens malcolm turnbull


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