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The government's 15% "backpacker tax" has stalled in the parliament as Labor and independent senator Jacqui Lambie continue to insist the rate should be 10.5%.

If the parliament can't agree, backpackers will be slugged with a 32.5% tax rate on the first dollar earned from this January. Farmers say this means they won't be able to attract workers to pick fruit this season.

On Thursday, the final day of parliament for the year, Turnbull attacked Labor's tactics, which he said benefited cashed-up Europeans visiting Australia on holiday.

"The Labor party, for nothing other than political cynicism, wants these white kids, rich, white kids from Europe, who come here on their holidays, to pay less tax than some of the Pacific Islanders from some of the poorest countries in the world," Turnbull said on ABC's AM program.

"He wants these kids from Europe to pay less tax than Australians working alongside them. I mean, seriously, what's the principle there?"

Workers from the Pacific Islands who come to Australia to pick fruit for a season pay 15% tax on every dollar earned, while Australian residents are not charged any tax for the first $18,200 in their pay packet.

On any dollar earned over $18,200, Australians are then charged the standard tax rate of 19%.