Australia is reconsidering its planned overhaul of the working holiday visa scheme, after strong criticism from businesses that depend on backpacker workers. Home Affairs Minister Tony Burke says the government is rethinking the ballot system for second- and third-year visas and may delay it.
Reports suggest the government may also raise the proposed cap for third-year visas to around 20,000, up from the 5,000 originally proposed. The current cap is 31,000. No final decision has been announced, so the higher figure remains a reported possibility rather than a confirmed change.
01. Why the plan is being rethought
The original plan was part of a push to cut net overseas migration to 225,000 by 2028-29. It would have capped second-year visas at 45,000, down from 57,000. But regional farming, hospitality and tourism businesses, which rely heavily on backpacker labour, pushed back strongly against the changes.
At the same time, the number of British backpackers has risen sharply. Home Affairs data cited by ABC News shows arrivals from Britain grew from 47,238 in 2023-24 to 79,412 in 2024-25. Under the 2023 UK free trade deal, British citizens can live in Australia for up to three years without specific regional work requirements.
02. What else has changed
In August, Prime Minister Anthony Albanese ruled out imposing regional work requirements on UK backpackers, though talks with the UK continue. In the same month, the government also paused working holiday visa applications from 24 countries.
03. Backpackers remain vital to regional Australia
Working holiday makers fill seasonal jobs on farms and in hotels, cafes and tourist towns across regional Australia, where local workers can be hard to find. That is why the proposed ballot and lower caps drew such a strong reaction. For now, the scheme’s final shape is undecided, and the government has signalled it is willing to adjust the plan before any changes take effect.
