SYDNEY — The Australian government will delay the introduction of the so-called ‘backpacker tax’ after a backlash from the tourism industry and farmers.

Young backpackers on working holiday visas were set to be excluded from Australia’s tax-free threshold from the 1st of July – which would see them pay 32.5 cents for every dollar earned in the country.

However, a strong reaction from the tourism industry and farmers — who use the holidayers as cheap labour — has caused the government to delay the implementation. They say higher taxes would push youngsters to other destinations such as Canada and New Zealand.

Applications for working holiday visas have already reportedly dropped since the plan was announced.