PORT Douglas would suffer if the Federal Government pushes ahead with its proposed backpacker tax at 32.5 per cent, according to new research.

The research, which surveyed 335 international working holiday makers staying in hostels in Cairns, Port Douglas and Melbourne between May and June this year, was conducted by Monash University's National Centre for Australian studies. It found that 60 per cent would not have come to Australia if they were taxed at 32.5 per cent.

The survey signalled real ramifications for tourism, with 57 per cent of the sample indicating that they would also spend less time travelling in Australia if the tax were to take effect and 69 per cent responding that they would spend less on tours.

The Monash University survey found that 62 per cent of the working holidaymakers sampled would consider going to New Zealand over Australia if the tax free threshold of around 18 thousand dollars was replaced with a 32.5 per cent backpacker tax.