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Australia strikes deal on 'backpacker tax'

Foreigners in Australia on working holidays face paying a 15 percent levy on every dollar they earn after the government Monday compromised on a controversial “backpacker tax”, dumping plans for a higher rate. Currently, like other workers, backpackers do not start paying tax until their annual income exceeds Aus$18,200. Farmers complained bitterly that the levy could affect labour supply at harvest time and the government in September watered down its plans to 19 percent.

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