Controversial 'backpacker tax' expected to be delayed

Prime Minister Malcolm Turnbull is expected to announce the controversial 'backpacker tax' will be put on the backburner.

(File: AAP) Source: AAP

The federal government is expected to announce it will delay introducing its controversial "backpacker tax".

It's feared the move to remove tax-free thresholds from overseas travellers would discourage fruit pickers and harm tourism when it comes into effect from July 1, since foreign seasonal workers would be slugged with 32.5 cents from the first dollar they earn.

The tax, which was expected to raise $540 million over four years, will be deferred for "further consideration", newspapers report.

Asked about the future of the tax by a voter in Darwin on Monday night, Prime Minister Turnbull insisted the government was looking at it, saying: "watch this space".

But Labor's agriculture spokesman Joel Fitzgibbon is dubious.

"This is just a stunt to push the issue beyond the election," he told AAP.

"It sends all the wrong signals to backpackers, many of whom are making the decision to travel to New Zealand or Canada instead of Australia."

Labor pledges $500m for Adelaide trams

Federal Labor has vowed to create thousands of South Australian jobs by pledging $500 million for a new Adelaide tram network if elected.

The funding will be used to pay for pre-construction work to kick-start the AdeLINK project, which runs through the centre of Adelaide to areas like Semaphore, Mitcham, Henley and Magill.

The state Labor government is undertaking a business case but the funding would help fast-track an assessment process from Infrastructure Australia.

Labor leader Bill Shorten will make the announcement on Tuesday in Adelaide, where he's turning his election campaign focus after spending a week in Queensland and a day in the Victorian city of Geelong.

He says the funding will re-energise the local workforce and help create 2000 jobs for a region which, like Geelong, is also reeling from the slowdown of the automotive sector.

Mr Shorten has already pledged a $59 million jobs transition package for car industry workers set to lose their jobs from the exit of the car-making industry.