The Federal Government's proposed 32.5 per cent tax on backpacker workers is a bad measure that "needs to go", Queensland Liberal National Party senator Barry O'Sullivan says.

Mr O'Sullivan was a key supporter of a motion passed at the LNP convention over the weekend that calls on the Federal Government to urgently rescind the implementation of the controversial tax plan.

"We need to just scrap any prospect that this labour force will be taxed at such a level that it will impede the reliable supply of labour, and my real interest is in agricultural industries," he said.

"Straight out the window, never to be revisited again at these levels."

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Mr O'Sullivan, who sits with the Nationals in Canberra, said his 21 party colleagues were "as one to fix this problem".

"People need to know that there are enough of us within the federal parliament, with an interest in agriculture and tourism, that we will never allow a measure to come back through the parliament, that will tax these people at 32.5 per cent or any other percentage rate that will impact on the steady and reliable supply of labour," he said.

"They [backpackers] should pay a fair amount of tax just like any other worker in this nation ... but not at a level that acts as a disincentive for them to engage in this particular work."

Backpacker tax rate a 'massive mistake'

He described it as a "massive mistake" for the Government to promote the proposed tax in the 2015 Budget as a means to raise $540 million in revenue over three years.

"I think we need to be punished for having made the mistake in the first instance of thinking that we were going to receive $540 million when we never were," he said.

But Mr O'Sullivan denied there was a deep divide over the issue within the Federal Coalition, instead arguing that the current Government review of the proposed tax showed commitment to finding a solution.

"As frequently as possible, I try to avoid speaking on behalf of my Liberal colleagues," he said.

"You've got 700-odd submissions [to the review] ... whatever the answer is rests within that.

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"I believe we will get a position that works well for industry, works well for this workforce meets the national interest for fair and equitable taxing arrangements and then we can get back to the job of being productive."

Originally due to take effect from July 1 2016, the new tax arrangements were delayed in the wake of growing criticism from the farming and tourism sectors.

Figures from Tourism Research Australia show the average backpacker earns $13,300 while in Australia.

The review into the taxation of working holiday makers was announced by the Coalition during the election campaign and is due to be finalised by mid-October.