The federal government has indicated the proposed rate for the so-called backpacker tax could be lowered.
The start date for the controversial measure has been delayed until January 2017 as the Turnbull government sought to rid itself of an election irritant in rural and regional electorates.
Tourism Minister Richard Colbeck believes the 32.5 per cent rate for working holiday visa tourists is not sustainable.
The National Farmers Federation proposal for 19 per cent was a possibility and the government would genuinely consider it.
"I don't see it staying the same - we will have to make some changes," he told AAP in Launceston on Friday.
Senator Colbeck said he'd like to see a change in the tax rate and other initiatives to increase backpacker arrivals.
The minister admits something has to give given it's obviously an issue of great uncertainty for farmers and the tourism industry.
He is concerned about the drop in the number of working holiday visas in the last few years and wants to turn that around.
"It is having an impact and the quicker we get it out of the way and resolve our position and then allow the industry to move on, the better," Senator Colbeck said.
