Federal government settles on a compromise for backpacker tax

The federal government has settled on a compromise package for its backpacker tax, dropping the rate to 19 per cent from the first dollar they earn rather than the proposed 32.5 per cent. Farmers have been quick to back the deal, but Opposition Leader Bill Shorten has called the handling of the deal 'botched', dubbing the changes as policy made on the run.

Federal Treasurer Scott Morrison Source: Getty