The Turnbull government will rid itself of an issue causing grief for coalition candidates in rural seats by delaying the so-called backpacker tax.
Working holidaymakers were facing a 32 per cent tax from July 1, sparking fears by farmers and tourism operators they would shun Australia as a travel destination.
Prime Minister Malcolm Turnbull told a politics in the pub gathering in Darwin on Monday night to "watch this space" when quizzed about the impact the planned tax would have on northern Australia.
On Tuesday, the government was sending signals the tax would be deferred for further consideration.
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2016澳大利亚联邦大选回顾
Prime Minister Malcolm Turnbull will use a second day campaigning in Darwin to announce $15 million in federal funding for a PET scanner at the Royal Darwin Hospital.
The announcement is welcome news for cancer patients in the Northern Territory who are forced to travel interstate for specialised diagnosis.
The better news is that a PET scanner will be in place no matter who wins the July 2 election, after Labor matched the coalition promise.
Opposition Leader Bill Shorten will pledge $500 million for a new tram network when he moves his campaign to Adelaide.
Labor had a dig at the prime minister's penchant for train travel when spruiking the announcement.
"Labor will create thousands of jobs and ease congestion by investing in key public transport projects whereas Mr Turnbull thinks public transport is just about selfies on the train," a campaign spokesperson said.
But Labor is facing increased pressure from the Greens on weekend penalty rates.
The minor party has launched TV ads attacking Mr Shorten's reluctance to enshrine protections in law.
With a hung parliament on the cards, key independent MP Cathy McGowan says she won't be making any deals with the coalition or Labor to form minority government.
