Future of backpacker tax unclear

The prime minister is tight lipped about the fate of the controversial backpacker tax amid speculation it may be scrapped.

The tax, which is due to come into effect from July 1, would have cut backpackers off from the tax-free threshold of $18,200 of income, instead charging them 32.5 per cent from the first dollar earned.

There are fears this will discourage fruit pickers and harm the tourism industry.

"We've been listening very carefully to the concerns expressed in regional communities ... we'll have more to say about that in the future," Malcolm Turnbull told reporters in Sydney on Saturday.