Treasurer Scott Morrison and Deputy Prime Minister and Agriculture Minister Barnaby Joyce made separate announcements on Tuesday that changes to overseas worker tax rates had been scaled down.

Mr Broad said he was fairly happy with the compromise.

“It’s a welcome improvement on what was a poorly thought out policy in the first place that Joe Hockey dumped on us when he was treasurer,” Mr Broad said.

“We’ve put some common sense back into it to ensure backpackers keep coming.

“Backpackers will still pay more tax than Australian workers, which I think is fair.”

Mr Broad said the tax deal would help growers in the Mallee but farmers and businesses in the Wimmera had also contacted his office about the tax hike.

“I was in Donald the other day and a lot of people use backpackers for chaser bin drivers, particularly in a big harvest like we’re having,” he said.

“Certainly not to the extend of horticulture growers use them, but they are an embedded part of our seasonal labour source.”

The proposed backpacker tax on all earnings will be cut from 32.5 per cent to 19 per cent from January 1, 2017.

The 19 cents-on-the-dollar rate will apply up to earnings of $37,000, and then normal tax rates will apply.

The 2015/16 federal budget eliminated the tax-free threshold for those on working holiday visas.

The changes came into effect in July this year and saw farmers, fruit growers and horticulture businesses  complain that foreign backpackers had been scared off from working in Australia.

Many backpacker workers had previously paid little tax due to the threshold of nearly $20,000, while the new regime taxed them immediately at the rate of Australia’s high earners.

Mr Broad said the government would also lift the age at which backpackers could apply for a working holiday visa and make changes to help pay for the tax compromise.

“Instead of 30, you can still be a backpacker at 35. Also you can work for 12 months in one place that means that if a businesses trains someone they can keep them on longer, ” Mr Broad said.

“Backpackers in the past have been able to access their superannuation when they leave, unlike ordinary Australians who wait until they get older.

“We will be taxing backpackers’ superannuation at 95 per cent; that’s one of the ways we’re paying for the changes.”

It will now cost overseas visitors $60 to leave Australia instead of $55.

Shadow agriculture Minister Joel Fitzgibbon called on the Treasurer to apologise for the damage done to Australian agribusinesses.

“Took Scott Morrison a year to work out the backpacker tax was a bad joke,” he tweeted.

Mr Broad said he had asked for the government to make changes to the new backpacker tax regime.

“There are my fingerprints all over it; I originally suggested 19 per cent, I was the first to champion it the parliament.

“I also originally suggested to increasing the age to 35 and letting backpackers work longer.”

Mr Broad said the government would spend $10 million on tourism advertising to convince backpacker workers to return to Australia.

Other Coalition backbenchers, including Liberal National Party Member for Dawson George Christensen, had also called for changes.