'Backpacker tax' put on hold after farmers complain

Working vacationers and travelers from overseas were given a reprieve on Tuesday from being hit with a so-called "backpacker tax" in Australia after a campaign by farmers and the tourism industry.

The government, which is in election mode with polls on July 2, had planned to introduce the levy on foreign travelers who are often young and work in agriculture and hospitality as a vital source of seasonal labor.

It would have meant that from July 1 they paid 32.5 cents for every dollar they earned, boosting government coffers by an estimated Aus$540 million ($396 million) over the next three years.