Australia announced on September 17, 2026, new visa regulations requiring backpackers who want to remain beyond their initial stay to enter a lottery for third-year working holiday visas. The lottery drastically reduces the number of extension visas to 5,000, down from 31,000 previously available.
Visa Reductions and British Backpackers Surge
Alongside the cut to third-year visas, second-year visa quotas have dropped from 57,000 to 45,000, resulting in a total decrease of 38,000 working holiday visa places over two years. The government relaxed visa conditions for British backpackers under an Australia-UK free trade agreement, allowing stays of up to two or three years without the usual 88
days of regional work and raising the age limit from 30 to 35. Since these changes, the number of British working holiday visa holders has more than doubled to nearly 80,000, compared to a former peak of 35,000.
Visa Processing Delays and Backpacker Reactions
Visa processing times have faced significant delays since July 2026, with some applicants waiting months. Matthew Heyes, founder of Backpacker Job Board, said visa applications filed from July onward remain unprocessed despite the Home Affairs website continuing to claim typical processing times of two to three days. French backpacker Zoe, 25, expressed stress over the lottery system, noting, “Everyone’s talking about that.
The mood is low.” Industry representatives also report a downturn in bookings; Max Gibson, General Manager of the Mahony Group, stated his group’s forward bookings are 25% lower for the year, marking the worst period experienced since the COVID-19 pandemic.
Government Rationale and Political Context
Home Affairs Minister Tony Burke described the surge of British backpackers as a “challenge” the government is addressing with UK counterparts. The government is prioritizing skilled migrants such as construction workers, doctors, nurses, agriculture experts, resource workers, and law enforcement officers to contribute more value to the economy. Rising migration levels after reopening post-pandemic, coupled with housing shortages, rising interest
rates, and a cost-of-living crisis, have pressured the government to tighten immigration policies. The right-wing One Nation party has publicly pushed for permanent cuts in migration levels.
Impact on Regional Labor and Tourism
Tourism operators and farmers in regional Australia depend heavily on backpackers for seasonal work such as fruit picking and fence mending. The reduced visa quotas and added uncertainty have raised concerns about labor shortages in these sectors. Employers may increasingly use the Pacific Labour Mobility program to source workers from Pacific island nations. French backpacker Laura described the difficulty of this work, saying, “We are doing what Australians don’t want to do… We
do it because we want to stay.”
Backpacker Perspectives and Official Statements
Backpackers who have completed or are working toward the 88 days of required regional work face uncertainty about qualifying for third-year visas. Zoe expressed doubt, stating, “I knew that it was worth it because I would like to get my third year without any problem… but now I’m not even sure about that anymore. That’s a bit stressful.” Tony Burke assured that visa processing times would normalize, but delays continue to affect travelers and employers. The government will also enforce stricter policies against visa overstayers and bar international students from bringing family members
under the new rules.
