Deputy Prime Minister Barnaby Joyce says the government's unpopular backpacker tax isn't yet resolved and consultations are continuing.
Mr Joyce said he was aware of concerns expressed by farmers and their peak body the National Farmers' Federation but this remained a matter for Treasurer Scott Morrison.
"I can say we're in consultation and we have been for a while. This issue is not resolved," he told ABC Television.
The so-called backpacker tax was announced in last year's budget and was to have come into effect on July 1.
That involved scrapping the tax-free threshold for those on working holidays, then slugging them 32.5 cents on every dollar from the first dollar earned.
This is deeply unpopular with farmers and the tourism sector, who rely on the visitors for casual labour.
Mr Morrison hinted the July 1 start may be delayed, telling the National Press Club on Wednesday he wouldn't back policy he didn't think was good policy.
Mr Joyce said he wanted to make sure Australian workers were not disadvantaged.
"They're both on the same field. They're both picking the same fruit," he said.
However, farmers experienced great difficulty to find local workers to pick fruit or perform other menial farm tasks.
"If they're not done, our nation doesn't earn money. We've got to try and work out a solution through this," he said.
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