Farmers are seething at a government plan to tax backpackers on their extra cash.
The federal government wants to tax working holiday tourists at 32.5 per cent from the very first dollar they earn from July 1.
But it's facing stiff opposition from the agriculture sector, which relies heavily on seasonal fruit pickers, with a petition endorsed by the peak farmer's body reaping more than 10,000 signatures.
The National Farmers Federation says the rate of 32.5 per cent is too high and suggests it be revised down to 19 per cent.
Tasmanian cherry grower Reid Fruits relies on backpackers for peak picking periods and believes the tax would impede hiring and force it to downsize to a domestic-only operation.
"Without backpackers our crops would simply fall to the ground," owner Tim Reid said in a statement on Tuesday.
Mr Reid said it was counter-productive for the government to invest heavily on free trade agreements yet put exports at risk through the tax.
The government has stood firm on the proposal arguing it would not give holidaymakers a tax holiday when they come to Australia.
The plan would deliver $540 million to the budget bottom line over four years.
