Backpacker tax: 'Just settle this bloody thing'

THE Federal Government is facing a race against time to get changes to the backpacker tax through the Parliament before its final session this year.

Key crossbenchers want a 13% tax rate.

One Nation senator Rod Culleton told the ABC he had been in "pure negotiations" with the Government to reduce the rate to 13 per cent and believed the Government "would agree" to the proposal.

Victorian Justice Party senator Derryn Hinch has also been part of the discussions, with Senator Hinch saying he would not shift from his position calling for a 13 per cent backpacker tax.

"We picked that figure because that means we'd be going up 2.5 per cent, they'd be coming down 2 per cent and we'd meet almost in the middle and let's do it and get it done," Senator Hinch said.

"Right now Culleton and I are saying to the Government, 'you can get a deal, 13 per cent, no strings attached'.

"I'm not looking for anything out of it, just settle this bloody thing."

Yesterday, the Government was adamant it had compromised enough, and would not countenance any deal with either senator unless they committed to supporting a 15 per cent rate.

Earlier on Wednesday, the Senate rejected the Government's 15 per cent backpacker tax bill after Labor moved an amendment to reduce the rate to 10.5 per cent.