Businesses in remote WA fear visa changes will worsen staffing shortages

Federal government caps third-year extensions at 5,000, down from 31,000, and introduces ballot for backpackers

By LineZotpaper
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Businesses across northern Western Australia say recent changes to the Working Holiday Maker visa program will make it harder to attract backpackers to remote regions, where they fill essential roles in hospitality, agriculture and retail.

The federal government has announced changes to the Working Holiday Maker visa program, including a ballot system for new applicants and a sharp reduction in third-year extensions from 31,000 this year to 5,000. The changes are being phased in over the next year.

Zac Cederholm, an American barista who moved to Kununurra about 3,000 kilometres north of Perth and now manages a cafe, said the visa extension was a key reason he came to Australia. "I did come here to work towards my third year visa, and if that wasn't an option, I would never have come here," he said. He argued the changes would reduce the incentive for backpackers to work in remote Australia, where they currently do jobs such as fruit picking, stacking shelves and serving tables. "If you can have staff that stay around for potentially six months, that's consistency, that's reliability," he said. Mr Cederholm noted that housing was not a major issue, as most temporary migrants live in hostels, dongas or share houses. "If we had to rely solely on local staffing, I think there'd be a lot less businesses in town."

Bill Tatchell, chief executive of Australia's North West Tourism, described the policy as "incredibly frustrating" and said it would reduce the incentive for backpackers to take regional jobs. "Fundamentally, there's an economic loss and it's just beggars belief a decision like this has been made," he said. He called for "common sense" regarding backpackers, whom he described as "essential" for the region.

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Analysis

Why This Matters

  • Remote businesses in Western Australia rely heavily on backpackers for seasonal and ongoing roles. Reduced visa incentives could lead to labour shortages, higher costs and business closures.
  • The changes signal a broader federal recalibration of migration policy, balancing concerns about population growth and housing against economic needs in regional areas.
  • If the pilot fails to attract enough workers, the government may face pressure to reverse or adjust the cap and ballot system.

Background

The Working Holiday Maker program allows young people from partner countries to work in Australia for up to three years. To extend beyond the first year, backpackers must complete specified work in regional or remote areas: 88 days for a second year and six months for a third. The government's recent changes introduce a ballot for first-time applicants and slash the number of third-year extensions available, arguing the program needs better management to address housing and infrastructure pressures.

Key Perspectives

Regional employers and tourism bodies: They argue backpackers are essential for staffing in remote areas where local labour is insufficient. Reduced extensions and a lottery system will deter workers, hurting businesses and regional economies. Federal government: Immigration Minister Tony Burke has framed the changes as a measured approach to managing migration numbers and reducing pressure on housing, while still allowing genuine working holiday makers to come to Australia. Critics: Some question whether the cuts will achieve their stated goals, noting that backpackers contribute to the economy and typically do not compete for permanent housing, given they live in shared accommodation.

What to Watch

  • The number of Working Holiday Maker visa applications in the next six months, particularly from regions that supply backpackers to remote WA.
  • Feedback from industry bodies like Australia's North West Tourism as the changes are rolled out over the next year.
  • Any adjustments to the cap or ballot system if labour shortages become acute in sectors such as hospitality and horticulture.

Sources

Zotpaper

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