Lower house rejects lower backpacker tax

The Senate's reduced backpacker tax rate of 10.5 per cent has been rejected in parliament's lower house.

Parliament's lower house has rejected the Senate's 10.5 per cent tax rate on working backpackers.

Labor, One Nation and David Leyonhjelm on Thursday successfully backed independent Jacqui Lambie's amendment to almost halve the coalition's 19 per cent rate, but the government used its numbers in the lower house to vote it down.

The bill will head back to the upper house to decide if it will insist on the changes, propose others or revert to the original proposal.