Labor has agreed to a revote on the bill before 2pm on Thursday, along with the contentious backpacker tax legislation.
In return for her support Senator Hanson wants a five-year freeze on the $60 departure tax.
The government wants to use the additional revenue from the impost to help pay for changes to its revised backpacker tax, which it wants set at 19 per cent.
Deputy Prime Minister Barnaby Joyce has dismissed calls for a compromise, arguing the government has done that already by cutting its original plan for a 32.5 per cent tax.
"The reason they agree with it is not because they want a solution, they want to create an act of political bastardry to blow the show up," he told ABC radio.
Independent Derryn Hinch, who is backing the government, has heard rumours about a 15 per cent compromise.
"I would hope the Labor party would say 'look, 19 per cent is a bit worse than 15 but at least we'll get something in and then lower it later on when, if they get into government'," he told reporters.
But Mr Joyce says the coalition has already done the hard yards. "We know how the Labor party would play: if we said 14 they would say eight, if we said eight they would say two, if we say two they would say zero, if we said
zero, they would say 'no you've actually got to ... pay them more money'."
Nationals MP George Christensen, a fierce opponent of the first tax proposal, said dropping the rate had solved the problem and there was no need to go lower.
Senator Nick Xenophon and his two NXT colleagues also support the 19 per cent rate, on the proviso unemployed
Australians are able to earn up to $5000 for seasonal work without losing welfare benefits.
Liberal Democrat David Leyonhjelm will support either a zero or 10.5 per cent rate, but not the government's 19 per cent.
He also disputes the government's claims a court ruling means if legislation is not passed all backpackers will be taxed at 32.5 per cent.
Government loses vote after One Nation no show
The Turnbull government was hit by yet another embarrassing parliamentary blunder after a One Nation no show killed off its proposed $5 departure tax hike.
Labor, Greens and crossbenchers Jacqui Lambie and David Leyonhjelm joined forces to kill the legislation, defeating it 31-30 at the second reading in the Senate on Wednesday night.
The three Nick Xenophon Team senators, Derryn Hinch and two One Nation senators voted with the government but Pauline Hanson and her One Nation colleague Brian Burston missed the vote.
The government proposed hiking the departure tax paid by passengers at airports to $60 to help pay for the changes to its revised backpacker tax.
The remaining backpacker tax bills were read a second time and are listed as the first items of government business on Thursday.
Greens senator Peter Whish-Wilson said he was glad to see the "stupid" policy defeated.
"A move to penalise tourists on top of penalising backpackers was bad policy that was penny pinching at best, and massively counterproductive at worst," he told AAP.
The latest debacle continues 18 months of to-ing and fro-ing over the backpacker tax.
The government first proposed a 32.5 per cent tax rate in its 2015 budget but announced during the election campaign it was putting that on ice pending a review.
It's now proposing a 19 per cent tax but Labor, Greens and crossbenchers want 10.5 per cent.
The government has faced a string of embarrassing procedural stuff-ups in the lower house since it was re-elected with a slim majority.
It lost control of the House when a number of MPs left early and also accidentally endorsed a call to explain its own failures on multinational tax avoidance.
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