The Turnbull government has announced the implementation of the so-called backpacker will be deferred for six months as it moves to remove an issue irritating farming and tourism communities.
The Turnbull government has temporarily rid itself of an issue causing grief for coalition candidates in rural and regional seats by delaying the so-called backpacker tax.
Frome July working holidaymakers were facing a 32 per cent tax rate from the first dollar they earned, sparking fears by farmers and tourism operators they would shun Australia as a travel destination.
Assistant Treasurer Kelly O'Dwyer, addressing reporters in the NSW regional seat of Eden-Monaro on Tuesday, said the tax would be suspended for six months pending a ministerial review to be led by Nationals leader Barnaby Joyce.
Labor was dismissive of the move, saying it wouldn't stop backpackers preferring to work in New Zealand and Canada.
"This is just a stunt to push the issue beyond the election," opposition agriculture spokesman Joel Fitzgibbon told AAP.
Prime Minister Malcolm Turnbull will use a second day campaigning in Darwin to announce $15 million in federal funding for a PET scanner at the Royal Darwin Hospital.
The announcement is welcome news for cancer patients in the Northern Territory who are forced to travel interstate for specialised diagnosis.
