Backpacker tax plan

Australia shelves backpacker tax plan

Working holidaymakers will instead be liable for 19% tax on every dollar that they earn.

The compromise deal follows an outcry from farmers and the tourist industry.

Farmers complained the tax rate could affect their labour supply at harvest time, while tourism operators maintained it would put backpackers and tourists off visiting Australia.

About 600,000 backpackers travel to Australia every year and many of them find work picking fruit.