Nationals say backpacker decision 'soon'

The federal government is putting the final touches to changes to the proposed backpacker tax, which farmers say is deterring seasonal workers.

File image of Barnaby Joyce

File image of Barnaby Joyce Source: AAP

Nationals MPs are confident the 32.5 per cent backpacker tax is "soon to go", despite Treasurer Scott Morrison saying work could continue up until the end of the year.

Queensland Liberal-National Party MP George Christensen has been one of the most vocal opponents of the budget measure, earlier this year pledging to cross the floor to vote against it.

"The 31.5 % (sic) backpacker tax is soon to go, meaning local farmers will still have access to a workforce," Mr Christensen wrote on his Facebook page on Monday.

"We are in there, fighting for outcomes like this every day."

Acting prime minister and Nationals leader Barnaby Joyce said a resolution on the tax is imminent, insisting farmers will know what's happening in the next month or so.

Mr Morrison told reporters in Sydney the government was still working to its deadline of an announcement by January 1, 2017.

"We'll continue to work through the issues and act in the time frame we said we would," he said.

"If we can land that sooner, we will."

However, the government needed to "keep a steady eye on what the fiscal task is", finding savings to compensate for any changes.

"If there are changes to be made, it is my view as treasurer they will be made in a way that does not disadvantage the budget."

The so-called backpacker tax, due to start on January 1, will slug people on working holiday visas with a 32.5 per cent tax rate from the first dollar they earn, unlike other workers who don't start paying tax until their income exceeds $18,200.

About 40,000 of the 75,000 workers in the Australian horticulture industry are backpackers.

It is understood the preferred option is to almost halve the proposed tax rate and consult further on ways to maintain the working holiday maker program as an attractive option for young travellers.

A review by Deloittes has received 1700 submissions, many of which argue for a fair amount of tax to be paid but not at the expense of industry and regional economies.

Acting opposition leader Tanya Plibersek said Labor held grave concerns about the backpacker tax, and called on the government to fix its rushed plan as farmers report dwindling numbers of people willing to pick fruit as a result.

It was curious Mr Christensen was calling the shots, as he had on several issues including the same-sex marriage plebiscite, she said.

"It is about time that the prime minister and the treasurer took control of the nation's direction and finances rather than farming it out to George Christensen," Ms Plibersek told reporters in Melbourne.


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Source: AAP


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