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Senate backs 10.5pct backpacker tax rate

AAP logoAAP 24/11/2016 Paul Osborne, AAP Senior Political Writer

Independent Jacqui Lambie has won Senate support for a 10.5 per cent tax rate on working backpackers.

The Senate on Thursday voted in support of her amended income tax rate for travellers on working holiday visa by 37-30.

However, it's unclear whether the rate will win support in the House of Representatives with the government still insisting on its 19 per cent rate.

Labor leader Bill Shorten challenged the prime minister in parliament to accept the amended bill.

Malcolm Turnbull said he would be insisting on the 19 per cent rate.

"This is a plain act of economic vandalism by the Labor Party," Mr Turnbull said.

"A plain act of undermining Australian businesses, Australian horticultural businesses, Australian tourism businesses."

Nationals leader Barnaby Joyce said the 19 per cent rate was fair.

"(Mr Shorten) believes that Alberto from Milan, when he goes to work in a pub in Dorrigo ... and does exactly the same job as Brett from Bostobrick, he could be on three times the pay," Mr Joyce told parliament.

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