The Australian Greens have broken the parliamentary deadlock on the backpacker tax, agreeing to the government's 15 per cent rate.
Greens leader Richard di Natale said his party was choosing to be "the sensible voice in this Senate".
"Today what we negotiated was a win for farmers, a win for the environment and an end to the uncertainty we have seen in the agricultural sector," he told reporters.
The Greens earlier on Thursday said they supported Labor's compromise of a 13 per cent tax rate.
The backpacker tax debate has dragged on for 18 months, and it was looking like the issue wouldn't be resolved before the end of the last parliamentary sitting day for 2016.
Treasurer Scott Morrison had been standing firm at 15 per cent, having already dropped from the original 19 per cent offer flagged in September.
"Having met with those crossbenchers again over the course of last night and again this morning, there are seven crossbenchers who are prepared to support the Government at 15 per cent," Treasurer Morrison said.
"Bill Shorten thinks a rich kid from Germany should pay less tax than a kid from Tonga or the Solomon Islands or Vanuatu."
Labor and the Greens had been united on blocking the legislation, the government needing one more crossbencher for it to pass.
"The government has used all its endeavours to come to a reasonable and sensible compromise on this matter."
Treasurer Morrison believed he had the support of Derryn Hinch, however, on Wednesday he voted against a 15 per cent tax, along with Labor, the Greens, Independent Senator Jacqui Lambie and One Nation's Rod Culleton.
Senator Hinch, who's nominated four different positions in two weeks on the tax, said he now wants 13 per cent, and met with the Prime Minister Malcolm Turnbull today to tell him.
"I just told him 'no, 13's the top,'" he said.
"We shook hands at the end of it, I wished him a Merry Christmas. I think to be fair to him he's very disappointed."
Senator Hinch had joined forces with Senator's Lambie and Culleton who are also pushing for 13 per cent.
"We've come up two-and-a-half points, why can't the government come down two points?"
It's a proposal Labor, despite being adamantly opposed to anything other than 10.5 per cent, now supports.
"The farce over the backpacker tax must end and it must end no," Opposition Leader Bill Shorten said.
"We are prepared to support a 13 per cent backpacker tax from every dollar earned by backpackers - we think it gets the balance right," he told reporters in Canberra today before offering the government some free advice.
"Grow up, swallow your pride, accept a solution - it is not the perfect solution, but it is the best possible solution."
If the matter isn't dealt with before Parliament rises for 2016, the tax will default to the original 32.5 per cent rate, which will be enforced come January.
Today the National Farmers' Federation said the Turnbull Government should accept the compromise, because the industry needs certainty before the end of the year.
Mr Turnbull outlined his position to the press, accusing Labor of favouring rich Europeans over some of the poorest people in Australia's region.
"Bill Shorten thinks a rich kid from Germany should pay less tax than a kid from Tonga or the Solomon Islands or Vanuatu, someone who's coming here to work over the season to send money back to their village," Mr Turnbull told reporters.
Senator Hinch said he was not convinced by the argument about poor Pacific workers, saying Ms Bishop - who spoke to him on the phone - had a "bleeding heart about Fijians".
-With AAP
