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Feds to review 'backpacker tax'

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The Federal Government will take another look at the so-called backpacker tax, set to kick in from July, amid concerns it could impact agriculture and tourism industries.

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Tourism Minister Richard Colbeck said Prime Minister Malcolm Turnbull had given him the go ahead to lead a discussion with colleagues in agriculture, immigration, employment and industry.

They will consider if there is an alternative to current plans under which foreign workers will be considered non-residents from July 1.

The current plan could make working holidays less attractive because workers will have to pay more tax on the money they make.

Colbeck told Wednesday’s Destination Australia tourism conference in Sydney that he would consult players in the tourism industry, who rely on foreign workers for 10 per cent of their workforce.

He added that Turnbull had told him any alternative would have to be revenue neutral.

AAP

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