Australia is preparing to tighten restrictions on British backpackers entering the country under its Working Holiday Maker visa scheme, with Prime Minister Anthony Albanese expected to discuss proposed changes with Andy Burnham this week.
The proposed reforms would remove an exemption that currently allows British citizens to extend their stay without completing specified regional work, a requirement imposed on backpackers from several other countries.
Mr Albanese said the existing arrangement had contributed to a growing number of British visitors taking jobs in popular coastal destinations rather than travelling to rural communities experiencing labour shortages.
Bondi and Coogee Attract British Working Holidaymakers
The Australian Prime Minister said many British backpackers were choosing to remain in Sydney, particularly around Bondi Beach and Coogee, where they were finding employment in bars and restaurants.
He argued that this was creating pressure on the local employment market, as the workers were not moving into regional areas where additional labour was needed.
Speaking to MPs in Canberra ahead of the Commonwealth summit in Antigua, Mr Albanese said British backpackers were arriving in considerably greater numbers than before the agreement was introduced.
He said: “Unlike backpackers from other areas of the world who have to spend time in regional Australia, at the moment those UK backpackers are arriving in very large numbers, much greater than they were previously to that arrangement being in place.”
He added that changes to the arrangement would be among the issues raised during discussions with Burnham.
Number of British Working Holiday Visas Rises Sharply
The agreement, which took effect in 2023, led to an increase in the number of British citizens receiving Working Holiday Maker visas.
Just over 47,000 Britons were granted the visas during the 2023-24 financial year.
The figure subsequently climbed to almost 80,000 in the following financial year.
The Australian government had previously ruled out changing the arrangement.
However, the administration is now considering restrictions as part of broader efforts to reduce the number of migrant workers entering the country.
In August, Mr Albanese defended the existing agreement, describing it as a separate arrangement established through the UK-Australia free trade agreement.
He said at the time that Australia was honouring its commitments under the deal.
Australia Considers Ballots for Second and Third-Year Visas
The government has also announced plans to introduce ballot systems for second and third-year Working Holiday Maker visas, potentially limiting the number of people eligible to extend their stays.
Under the proposed arrangements, 45,000 places would be available for second-year visas, compared with approximately 57,000 people who qualified in 2026.
The reduction would be even greater for third-year visas, with the number of available places expected to fall from 31,000 to just 5,000.
First-year Working Holiday Maker visas would remain uncapped under the proposals.
Regional Employers Face Potential Backpacker Shortages
The existing visa requirements allow eligible backpackers to qualify for extended stays by undertaking specified work in regional Australia.
Approved employment can include agriculture, fruit and vegetable harvesting, construction and mining. Certain tourism and hospitality positions in designated remote locations also qualify.
However, the proposed restrictions have raised concerns among businesses in regional communities that depend on temporary overseas workers.
Tourism operators in Cairns are among those that rely heavily on backpackers to fill short-term vacancies, raising concerns about the potential impact of changes to the visa arrangements.