Home Affairs Minister Tony Burke says Australia must 'find a way' to reduce UK backpacker numbers without jeopardising the free trade agreement, while farming, tourism and hospitality groups warn the proposed changes could cripple their industries.
Tony Burke has all but confirmed the government is going back to the drawing board on its proposed backpacker crackdown, as it grapples with a surge in UK working holiday-makers and pressure to rein in overall migration.
On Friday, the Home Affairs Minister said Australia must 'find a way' to reduce the number of UK backpackers arriving under a free trade deal introduced in 2023, which allows British citizens to live in Australia for up to three years without specific work requirements.
"We can find a way to bring that back to something more sensible and in the national interest, without jeopardising the other parts of the free trade agreement," he said.
The favourable treatment has led to a steep increase in British backpacker numbers, from 47,238 in 2023/24 to 79,412 in 2024/25, according to Home Affairs data.
In August, Prime Minister Anthony Albanese ruled out imposing regional work requirements on UK backpackers, which apply to other working holiday-makers seeking to extend their visas beyond 12 months.
The government had proposed introducing a ballot system for non-British backpackers seeking to extend their stay into a second or third year. The Australian reported the government was considering delaying the rollout until early next year, after farming, tourism and hospitality groups warned the changes could cripple their industries.
The government is also reportedly considering lifting the cap on third-year visas from the proposed 5,000 to 20,000 (down from the current 31,000) and imposing longer regional work requirements on visa-holders.
Burke said the "parameters" around reducing the overall number of working holiday-makers were unchanged. "The total number of working holiday or backpacker numbers that I've announced at the National Press Club, I cannot shift from," he said. He described potential changes to the implementation as "tweaks" that would allow businesses to "get the best possible use out of people, while they are here".
Australian Chamber of Commerce and Industry (ACCI) chief executive Andrew McKellar said there had been "extensive discussions" between the government and affected industries. He warned the original proposal risked disrupting businesses outside major cities, particularly in regional areas that relied on working holiday-makers to fill jobs.
Mr McKellar said business groups wanted the government to "make a decision", warning the "clock is ticking" for businesses seeking certainty ahead of summer. "Let's ensure that those people who are already here can continue with their plans … and that there's a fresh set of rules for anyone else who's coming in," he said.
Community Strong MP Allegra Spender said growing uncertainty was becoming increasingly painful for businesses. “What I'm seeing in the migration system more broadly is very slow processing times and not real honesty about where this is all going,” she said.
The government paused working holiday-maker visa applications from 24 countries in August. Burke said the government was "very close" to a resolution.
Analysis
Why This Matters
- Regional businesses face uncertainty ahead of summer peak season if visa rules remain unclear.
- The surge in UK backpackers adds to broader migration pressures the government is trying to manage.
- Changes to the ballot system and work requirements will directly affect thousands of working holiday-makers and employers.
Background
Australia's working holiday-maker program allows young people from eligible countries to work and travel for up to three years. The 2023 free trade agreement with the UK removed work requirements for British backpackers, leading to a sharp increase in arrivals. In August 2024, the government paused visa applications from 24 countries and announced plans to cap numbers, including a ballot system for non-UK backpackers seeking extensions. Industry groups have warned the proposed caps would hurt regional employers who depend on seasonal labour.
Key Perspectives
- Tony Burke (Home Affairs Minister): The government cannot shift from the overall reduction target but is open to "tweaks" to help businesses get the best use of backpackers while they are here. He says the government is "very close" to a resolution.
- Andrew McKellar (ACCI chief executive): The original proposal risks disrupting businesses outside major cities. The government must make a quick decision as the "clock is ticking" for businesses planning for summer.
- Allegra Spender (Community MP): Growing uncertainty, slow processing times and a lack of honesty about where migration policy is going are damaging businesses.
What to Watch
- Whether the ballot system rollout is formally delayed to early next year.
- The precise cap on third-year visas and any new regional work requirements.
- Industry reaction to any finalised rules, particularly from horticulture, tourism and hospitality sectors.
Checked
12 claims in this story checked against 1 source: 11 supported.
Show each claim
- SupportedThe government is back to the drawing board on the backpacker crackdown.Latest business news: “Home Affairs Minister Tony Burke has all but confirmed the government is going back to the drawing board on its proposed backpacker crackdown”
- Partly supportedBurke says Australia must reduce UK backpacker numbers without jeopardising the free trade agreement as a whole.Latest business news: “On Friday, Mr Burke said Australia must "find a way" to reduce the number of UK backpackers arriving and staying in the country under a free trade deal introduced in 2023”
- SupportedBurke said, “We can find a way to bring that back to something more sensible and in the national interest, without jeopardising the other parts of the free trade agreement.”Latest business news: “"We can find a way to bring that back to something more sensible and in the national interest, without jeopardising the other parts of the free trade agreement," he said.”
- SupportedBritish backpacker numbers rose from 47,238 in 2023/24 to 79,412 in 2024/25, according to Home Affairs data.Latest business news: “The favourable treatment has led to a steep increase in the number of British backpackers coming to Australia, up from 47,238 in 2023/24 to 79,412 in 2024/25 according to Home Affairs data.”
- SupportedIn August, Albanese ruled out regional work requirements for UK backpackers seeking to extend their visas.Latest business news: “In August, Prime Minister Anthony Albanese ruled out imposing regional work requirements on backpackers from the UK, which apply to other working holiday-makers seeking to extend their visas beyond 12 months.”
- SupportedThe Australian reported that the government was considering delaying the ballot rollout until early next year after industry groups warned the changes could cripple their industries.Latest business news: “The Australian newspaper reported the government was now considering delaying the rollout of the ballot system until early next year, after farming, tourism and hospitality groups warned the changes could cripple their industries.”
- SupportedThe reported proposal would raise the third-year visa cap from 5,000 to 20,000, still below the current 31,000, and impose longer regional work requirements.Latest business news: “The report suggests the government is considering lifting the cap on third-year visas from the proposed 5,000 to 20,000 (down from the current 31,000) and imposing longer regional work requirements on visa-holders.”
- SupportedBurke said the parameters for reducing the overall number of working holiday-makers were unchanged and that he could not shift the total he had announced at the National Press Club.Latest business news: “Mr Burke said the government was continuing to engage with industry stakeholders, but the "parameters" around reducing the overall number of working holiday-makers were unchanged. "The total number of working holiday or backpacker numbers that I've announced at the National Press Club, I cannot shift from," he said.”
- SupportedBurke described possible implementation changes as “tweaks” to help businesses make the best possible use of workers while they are in Australia.Latest business news: “He described potential changes to the implementation as "tweaks" that would allow businesses to "get the best possible use out of people, while they are here".”
- SupportedMcKellar warned the original proposal risked disrupting businesses outside major cities, particularly in regional areas that relied on working holiday-makers to fill jobs.Latest business news: “He warned the original proposal risked disrupting businesses outside major cities, particularly in regional areas that relied on working holiday-makers to fill jobs.”
- SupportedMcKellar said business groups wanted the government to “make a decision” and that the “clock is ticking” for businesses seeking certainty before summer.Latest business news: “Mr McKellar said business groups wanted the government to "make a decision", warning the "clock is ticking" for businesses seeking certainty ahead of summer.”
- SupportedSpender said she was seeing very slow processing times and a lack of honesty about where the migration system was going.Latest business news: “"What I'm seeing in the migration system more broadly is very slow processing times and not real honesty about where this is all going," she said.”