The Australian government said it will support imposing a 15% tax rate on working holiday visitors from overseas. 
The new "backpacker tax" proposal is lower than the government's original plan for a 32.5% rate, which angered tourism and farming operators, according to the (BBC). 
They feared taxing temporary workers 32.5 cents on every dollar would make it unattractive to come to Australia. 
About 600,000 backpackers travel to Australia every year, many of them finding work picking fruit. 
At present backpackers, like Australian workers, do not pay any tax until their yearly income exceeds A$18,200 about ($13,500). 
Treasurer Scott Morrison said the government had reached a compromise deal with independent crossbenchers. 
"Today the government will be working to put in place a bill which will propose 15% on the backpackers' arrangement," he said in Canberra on Monday. 
The announcement comes after more than a year of political manoeuvring between the government, opposition and minor parties. 
Last week, independent senator Jacqui Lambie's proposal for a 10.5% tax rate was blocked by the House of Representatives. 
Government MP Andrew Broad broke ranks on the weekend to suggest a 15% rate, declaring the issue had to be settled before the new year. 
Morrison said lowering the rate to 15% would cost the Australian budget A$120m over four years. 
The opposition said it continued to support a 10.5% tax like New Zealand, arguing Australia risked turning away working holiday-makers.