The so-called backpacker tax was a good opportunity to ramp-up a program that allows Pacific workers to fill agricultural labour shortages, a leading academic says.
In a move to rid itself of an election irritant in rural and regional seats, the federal government has delayed the tax measure until January 1, pending a ministerial review amid concerns about a shortage of seasonal workers.
It had planned from July to slug working holidaymakers from overseas with a 32.5 per cent tax rate from the first dollar they earned, unlike other workers who don't start paying tax until their income exceeds $18,200.
Farmers and tourism operators fear they would shun Australia as a working holiday destination.
Stephen Howes, an international development expert at the Australian National University, says the Pacific island program could fill the labour void left if the backpacker tax goes ahead.
"They are much more productive than backpackers because they are used to hard work ... they're a much more reliable workforce," Professor Howes told AAP.
The scheme has been most popular with workers from Tonga, Vanuatu and Samoa.
An estimated 40,000 backpackers work on Australian farms each year while there are fewer than 4000 workers from the Pacific
As Vanuatu and Fiji recover from cyclones, it was important people had opportunities to come to Australia and earn some money to help lift their families out of extreme poverty, Prof Howes said.
Hundreds of people on Tanna in Vanuatu are still living under tarps more year on after Cyclone Pam hammered the island.
The season workers program was also better regulated than backpacker labour which reduced the risk of exploitation, Prof Howes said.
A parliamentary inquiry earlier in May called for a review of how the seasonal workers program and working holidaymaker programs affect each other.
It also recommended more female workers be recruited and the seasonal workers program be expanded to provide labour for the aged care, childcare and disability care sectors.
The inquiry heard evidence from some growers that backpackers were unreliable and often left after a month or two forcing them to retrain replacements.
SEASONAL WORKERS PROGRAM IN BRIEF
* Fiji, Kiribati, Nauru, Papua New Guinea, Samoa, the Solomon Islands, East Timor, Tonga, Tuvalu, and Vanuatu send workers
* Workers pick fruit; work on cane, cotton and fish farms; in hospitality as housekeepers and gardeners at hotels to fill shortages
* Remittances are an important source of national income for poor Pacific island countries
* New Zealand has a similar scheme and takes 8000 island workers annually.
