The gruelling and bumpy negotiation for the settlement of the backpacker’s tax has finally reached its conclusion.
The initial proposition from the government at 32.5% tax rate was received with negative backlash from both the Opposition and the Senate, with the latter favouring a 10.5% rate.
In response, the Coalition appealed to the general by countering with a decrease to 19% from its inception, but with the addition of a superannuation tax of 95% as a counterweight. It was here when an impasse was established, and the grumbles rose to a new high.
The Coalition specified that the original 32.5% tax rate would be enacted if no agreement could be reached soon.
In the last few days, with the Green’s help, the backpacker’s tax was able to pass the Senate with a final compromise of 15% and a 65% superannuation tax. The Deputy Prime Minister, Barnaby Joyce, and Treasurer, Scott Morrison, both thanked the Greens for their support.