Hanson hails backpacker tax as a 'win for common sense'

Treasurer Scott Morrison has confirmed the federal government has agreed to a 15 per cent backpacker tax rate, which is in line with the position held by Pauline Hanson's One Nation.

One Nation leader Pauline Hanson Source: AAP

The government has made a second back down in as many months on the backpacker tax.

This morning the Treasurer Scott Morrison announced the government would drop the rate to 15 per cent.

That's down from the 19 per cent offered in September as a compromise with farmers, the tourism sector and many within the Coalition themselves, which all firmly opposed the original 32.5 per cent tax on working holiday makers announced in the 2015 budget.

The rate of 15 per cent is in line with what Pauline Hanson's One Nation suggested and should be enough to get the eight crossbenchers on side to pass it through the Senate in this final week of parliament.

Mr Morrison said he rang Senator Hanson to tell her about the new rate before parliament started on Monday morning.

Labor had sided with Tasmanian Independent Jacqui Lambie to get a 10.5 per cent rate passed through the Senate last week but the government refused to pass that through the House.

Mr Morrison put the blame for the farce on Opposition Leader Bill Shorten.

"The villain in this, the phoney in this is Bill Shorten and the Labor Party who are quite happy just to blow up the show, blow up the budget on every single occasion," he said.

The treasurer said the shortfall of more than $120 million over four years, created by the back down, would have to be made up elsewhere, but wouldn't say how.

Senator Hanson released a statement which said her four votes would support the 15 per cent rate.

"Most importantly this is a win for farmers, small business and tourism but this is also a win for One Nation and a win for common sense,” Senator Hanson said.

The four members of the Nick Xenophon Team are also claiming credit, with the government agreeing to their trial allowing Australian job seekers to earn up to $5,000 as seasonal farm workers without losing payments.

"We think it's a great option and it's about that bridge into agricultural work" NXT MP Rebekha Sharkie said.

WATCH: Lower house rejects Senate's 10.5 per cent backpacker tax rate

Victorian Senator Derryn Hinch also supported the compromise, meaning the government had the numbers to pass it despite Labor and the Greens still wanting a lower rate.

Shadow Treasurer Chris Bowen said Mr Morrison's comments about the opposition's approach to the backpacker tax were "immature and petulant".

"The backpacker tax has been ill conceived, ill thought out based on no consultation," Mr Bowen said.

"The government has lurched from position to position in a way which has undermined confidence in regional Australia, which has affected backpacker numbers to Australia even already."

The early government compromise signals the government's willingness to do deals to get key pieces of legislation passed before the end of year break.

The next challenge is the Australian Building and Construction Commission bill, which also needs eight crossbenchers to pass.

Negotiations on the double dissolution trigger bill have been on all weekend, with reports the government is close to securing the three votes of the Xenophon team with amendments.