Backpackers say they'll stick with plans to work in Australia, despite the 15 per cent tax legislation which is headed to the senate.
The federal opposition says the government has failed to show if the revised figure will make Australia more competitive, but a group of travelling workers say it won't change their plans, while farmers just want the drawn out saga over and done with.
The bill to reduce the rate to 15 per cent from 19 per cent passed the lower house on Tuesday after debate was gagged and will now head to the Senate.
It's the second time the coalition has proposed lowering the rate since the savings measure was introduced in 2015 at 32.5 per cent.
Shadow treasurer Chris Bowen says it is the epitome of policy on the run.
"What we are seeing here today is a humiliating backdown from an incompetent treasurer on the run," Mr Bowen told parliament.
He labelled it an uncompetitive rate that's unfair to Australia's horticulturalists, farmers and tourism operators, and will cost the budget $120 million.
Labor is standing by its demand for a 10.5 per cent rate, initially preferred by the Senate, saying it's what farmers want and will keep Australia competitive with New Zealand.
Most backpackers AAP spoke with outside Sydney hostels on Tuesday weren't aware of the tax, and the majority say they will still continue to travel and work in the country regardless.
"The sort of jobs we are looking to do, they pay better than what we are used to in our countries, so for us it is fairly easy to save," English traveller Tom Crich said.
But a new tax would make it harder to stay in Australia, especially while paying rent in Sydney, he said.
"With a bit extra knocked off, breaking even will be hard."
Queensland fruit farmer Gavin Scurr was hopeful the 15 per cent rate gets through parliament.
"It's just dragged out for far too long," the Pinata Farms managing director told AAP.
He said the uncertainty around the tax had been a huge concern for Queensland farmers and the original 32.5 per cent would have been unsustainable.
Liberal backbencher Tony Pasin said the issue should've been resolved six months ago but accused the opposition of wanting to create division and uncertainty.
He said backpacker numbers had been in steep decline since 2012, long before there was a discussion about effective tax rates.
Nationals MP Andrew Broad conceded the bill had been "kicked around a bit" but was happy with where the rate had landed.
"Yes, it's taken too long, yes, it required myself and a few others to be quite bolshie and be on the front foot," he told reporters.
"But at the end of the day we've got a 15 per cent (tax rate) supported by industry, supported by backpackers, it's going to work."
The government has also agreed in a deal with the Nick Xenophon Team to support a trial allowing jobseekers to earn up to $5000 on seasonal fruit-picking work without penalty.
