Australia to introduce 'backpacker tax'

A controversial tax on backpackers working in Australia has been signed off.

The country's government had wanted to bring in a 32.5% rate, but has now settled on a 15% levy on foreigners in Australia on working holidays.

It has been lowered after farmers and tourism groups raised concerns about it deterring people going to Australia for working holidays.

Treasurer Scott Morrison said a compromise had now been reached, saying: "Today the government will be working to put in place a bill which will propose 15% on the backpackers' arrangement."

At the moment backpackers do not start paying tax until their annual income exceeds Aus$18,200, just like other workers.