The federal government has struck a deal to pass a 15 per cent backpacker tax and is close to an agreement on a second hard-fought bill - reinstating the building industry watchdog.
The compromise, confirmed in a phone call between Treasurer Scott Morrison and One Nation leader Pauline Hanson on Monday, came as the latest Fairfax poll gave Labor a narrow 51-49 per cent lead but put Malcolm Turnbull's preferred prime minister status at 51-30 over Bill Shorten.
Mr Turnbull is confident of a strong finish to the parliamentary year, as talks continue to pass the Australian Building and Construction Commission bill by the end of this week.
The downside to the backpacker tax deal for the coalition is that it feeds into the impression that the minor parties - which had 18 per cent support in the Fairfax poll - are having success.
Mr Morrison told reporters the amended laws would go to parliament on Monday, and the the coalition would leave Labor to engage in "childish politics and wrecking".
Key crossbench senator Nick Xenophon appeared to favour a compromise as he warned of dire consequences for fruit farmers if parliament doesn't agree on the backpacker tax before the week's end.
"If we can't sort this out in the next four days, there will literally be tens of thousands of tonnes of fruit left rotting on the ground, and that will be a national disgrace," he told ABC radio.
Senator Xenophon, whose team holds three votes in the Senate, is close to reaching a deal with the government over the ABCC draft laws having discussed them with the prime minister on Sunday.
"There are still some issues that need to be thrashed out in the coming hours," Senator Xenophon told ABC radio.
The prime minister has reportedly agreed to withhold billions of dollars in government contracts from builders who fail to pay subcontractors on time, offering Senator Xenophon the assurance as a sign of good faith.
They've also discussed using procurement processes to make sure all building materials meet Australian standards.
If his amendments are agreed to, Senator Xenophon believes the watchdog will still have teeth but with better safeguards around it than its Howard-era incarnation.
Mr Turnbull is also considering new commitments to improve the Murray-Darling river system in a last-minute bid to stop Senator Xenophon holding up all legislation until the water dispute in resolved, The Australian reported.
Fellow crossbencher Liberal Democrat David Leyonhjelm has also all but reached a deal with the government, saying the coalition now accepts raising the bar on the standard of proof for wrongdoing on building sites.
Another crossbencher Derryn Hinch welcomed agreement on the protection of subcontractors.
Senator Hinch last week predicted the government would get passage of its ABCC legislation as a Christmas present.
Labor frontbencher Jim Chalmers seized on reports of a possible ministry reshuffle, a scandal engulfing George Brandis and Tony Abbott's bid for a cabinet post as signs of unrest.
"Malcolm Turnbull limps to the end of the parliamentary year with his leadership in crisis, the Senate in revolt, his agenda in tatters, Tony Abbott on the march, his attorney-general under a corruption cloud and his budget swimming in red ink," Mr Chalmers told reporters.
One Nation leader Pauline Hanson claimed it as a victory.
"Most importantly this is a win for farmers, small business and tourism, but this is also a win for One Nation and a win for common sense," she said in a statement on Monday.
"Instead of letting lobbyists and special interests groups dictate policy politicians should be visiting their voters and listening."
