Australia's conservative government has struck a deal with a minor party on a tax rate that it says will encourage foreign travelers to pick fruit on the nation's farms.
Greens party leader Richard Di Natale said the government and his party reached a compromise today on how much vacationers should be taxed on income earned picking farm produce next year.
The government would not go below a 15 per cent rate for the so-called backpacker tax while the Greens asked for 13 per cent.
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Di Natale says the compromise involves the government agreeing to take less tax from the travelers' compulsory pension contributions.
Agriculture Minister Barnaby Joyce confirmed his government had reached a deal with the Greens. The breakthrough comes on the last day Parliament is to sit for the year.
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