Tax deal will discourage backpackersMr Shorten also criticised the Government's last minute-deal with the Greens to support the 15 per cent backpacker tax. In exchange for the Greens' support, the Government agreed to scrap its plan to tax 95 per cent of backpackers' superannuation. Instead, that rate will be set at 65 per cent. The Coalition will also chip in an extra $100 million in Landcare funding under the deal. Labor refused to budge higher than 13 per cent on the backpacker tax. "The problem is the Greens, on the way, got bought off with $100 million of extra funding and in the meantime, what this Government's done is got a higher headline rate of tax, which will discourage backpackers coming here and they've had to pay out more money from the budget bottom line," Mr Shorten said. Last night on 7.30 Mr Turnbull accused Labor of being "vindictive" by refusing to meet the Government at 15 per cent. "Unless the Senate is prepared to support the 15 per cent tax rate then the rate will be 32.5 percent," Mr Turnbull said. "Is Bill Shorten really going to impose this additional burden on all of those growers, all of those businesses in Australia that need backpacker labour, particularly during the season, is he going to impose it on them simply to show, make some vindictive point because he is so bitterly disappointed that our reforms to hold union bosses to account have got through the Senate?"
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