Backpacker tax deal hurts budget: minister

Finance Minister Mathias Cormann says the federal government has already gone as far as it sensibly can on a backpacker tax compromise.

Finance Minister Mathias Cormann says the government has compromised as far as it "sensibly" can on the backpacker tax, amid calls for it to break an impasse by reaching a deal with Senate crossbenchers.

"... the budget bottom line cannot afford a further tax cut beyond what we have put on the table," Senator Cormann told ABC TV on Sunday.

Crossbenchers and Labor have left the door open to a compromise on the rate of income tax working holiday makers pay that lies somewhere between the 10.5 per cent the Senate wants and the government's plan for 19 per cent.

Labor frontbencher Anne Aly said there must be a resolution to the backpacker legislation this week, the final sitting of the year.

"It depends on what the crossbench does, but I hope we will see a resolution with the backpacker tax this week," Dr Aly told ABC television.

Senate powerbroker Nick Xenophon has warned he will stand against government measures while issues like the Murray-Darling River remain unresolved.

However, Senator Xenophon said on Saturday he would keep his agreement with the government to support the backpacker tax.


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Source: AAP



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