Feds should dump backpacker tax: NT chief

The federal government's proposed `backpacker tax' should be dumped, the Northern Territory's chief minister says.

Adam Giles wants the tax on the agenda at next month's Council of Australian Governments meeting with the Commonwealth planning to tax backpackers 32.5 per cent for every dollar they earn instead of having the same tax-free threshold as Australian taxpayers.

But the tax would hurt the NT's tourism and agriculture industries, which rely heavily on seasonal workers and should be scrapped entirely, he said.

"Working holiday makers are critical for businesses operating in our regional and remote areas. Any reduction in this source of labour in Australia will be first felt in regional areas," he said.

Australia already competes with New Zealand and Canada for a share of the young international traveller market and it has been easier for those on working holidays to obtain Canadian visas, Mr Giles said.

The number on Australian working holidays dropped by 17,000 in 2014-15.