Traveller Tom Jackson was stabbed as he tried to save fellow backpacker Mia Ayliffe-Chung, 21, during a knife attack at Shelley's Backpackers in Home Hill, Queensland, last week.
The 30-year-old, from Congleton, Cheshire, died in a north Queensland hospital on Tuesday.
His local MP, Christian Fiona Bruce, called him a "modern day hero" that his family can be "very proud of".
"Tom Jackson has shown that there is still a great deal of utterly selfless care in the world today," she said on Premier's News Hour.
"I'm sure all of our thoughts and prayers are with Tom and his family at this time. I hope it will be some consolation to Tom's family that he's earned the respect of everyone who heard of what he did, to rush to the aid of another person at the cost of his own life".
Queensland Police said detectives will upgrade a charge of attempted murder against a 29-year-old man when he next appears at Townsville Magistrates' Court on October 28.
Smail Ayad is alleged to have killed Ms Ayliffe-Chung and to have caused the injuries which led to Mr Jackson's death, as well as harming 12 police officers.
Police previously said they were investigating whether Ayad had an "obsession" with Ms Ayliffe-Chung, from Wirksworth, Derbyshire, and described Mr Jackson's actions as "selfless".
Premier's Aaron James speaking to Fiona Bruce MP: