Canberra region winemakers have warned of potentially devastating impacts on harvest and business if the delayed backpacker tax was eventually introduced.
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The government announced on Tuesday it would push back the start of its fraught with challenge backpacker tax by six months, pending a review.
In addition to removing the tax-free threshold for non-resident workers, the measure imposed a 32.5 per cent tax rate on every dollar they earned. It was set to reap the budget $540 million by 2020.
It was contentious within the Coalition, and regional senators and MPs slammed the idea on behalf of the agriculture and livestock industries.
During harvest especially, but also for pruning and thinning, Canberra's winemakers rely heavily on a steady supply of backpackers and fear the tax would dissuade them from travelling to Australia.
"It's so hard to get city-based politicians to understand the crisis you go through every year when your vintage or harvest is coming up, and you've just got to get labour in there ... these people are a real lifesaver," said Jim Lumbers, of Lerida Estate.
"It affects product quality too, of course, if you're hand picking you're getting a much higher quality product than if you're machine picking, which is why the Canberra district is so reliant on this type of labour.
"Most of us are dependent on getting the highest quality wine and maintaining the reputation of the district."
Mr Lumbers said his staff would be two-thirds backpackers at busy times.
Ken Helm, of Helm Wines, said up to 70 per cent of his winery's workforce at critical times would be backpackers, who were employed through a contractor.
"We're always looking for staff and that's one of the problems we do have," he said, fearing a backpacker tax would raise the unenviable prospect of contractors having no staff to send him.
"If they were wiped out we would struggle to survive."
John Leyshon, president of the Canberra District Wine Industry Association, said while he could not speak for the association as it had not discussed the issue together, he felt most would agree that the tax should be scrapped.
He also warned of a knock-on effect if it was eventually introduced.
"A lot of backpackers have friends at home, relatives at home that will follow them out and I really don't think we can afford to lose that workforce," he said.
