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After more than a year, the Australian government has agreed to support a 15% tax rate on overseas workers in Australia on a working holiday visa.

The 15% rate is much lower than the government's original proposal of a 32.5% tax rate, which was rejected by tourism officials and farmers alike who believed the extortionate tax would make Australia a much less attractive proposition for those tourists seeking to supplement their travels by working - many of whom earn money picking fruit around the country.

However, opposition agricultural spokesman Joel Fitzgibbon said that the opposition would continue to call for a 10.5% tax rate - "When European backpackers look towards Australia and New Zealand ... they just look at the headline rate" he said, although just last week a 10.5% rate was rejected by the House of Representatives.

The wrangling could be set to continue...


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