In a classic political compromise that gives with one hand and takes with the other, leaving no-one happy, the Australian Government has reduced its proposed working  backpacker tax rate from 32.5% to 19% on earnings up to $37,500 but will pay for the revenue shortfall by increasing the departure tax by $5 to $60.

Industry lobby groups were pushing for the withdrawal of the backpacker tax altogether and have called the increase in the Passenger Movement Charge counter-productive.

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