Shadow treasurer Chris Bowen is astounded the Turnbull government hadn't resolved the issue of its controversial backpackers tax when it handed down the federal budget last week, saying it's another sign of dysfunction.
Due to come in on July 1, the tax was announced in last year's budget and involves scrapping the tax-free threshold for those on working holidays, then slugging them 32.5 cents on every dollar from the first dollar earned.
Farmers and the tourism sector are campaigning heavily against the tax which they believe will damage their industries, warning crops will be left unpicked.
Mr Bowen told the National Press Club the government clearly hadn't done its homework.
"Now they're all at sea ... that is pretty dysfunctional," he said in his budget reply speech.
Agriculture Minister Barnaby Joyce remains in communication with the prime minister and treasurer over the tax, but said they have until July 1 to resolve the issue.
"I hear what people are saying ... we hear the issue and we work towards a form of resolution," he told reporters in Brisbane.
"We're not blind to this. I've got a heap of them in my electorate and right up and down this coast they're picking strawberries, tropical fruits, mangoes."
