The Australian government has announced significant reductions to the availability of working holiday visa extensions, cutting the cap on third-year visa extensions from 31,000 in 2026 to 5,000 under new rules to be rolled out over the next year. These measures aim to reduce net overseas migration but are causing serious concerns among businesses in remote regions such as Western Australia’s Kimberley.
New Working Holiday Maker Visa Conditions
Backpackers seeking additional work rights in Australia must now meet stricter conditions. To qualify for a second-year visa extension, individuals must complete 88 days of specified work in regional or remote areas, while a third-year extension requires six
months of such employment. Under the new policy, third-year visa applicants will enter a ballot system due to the capped limit of 5,000 slots, a substantial decrease from the 31,000 permitted this year, according to Immigration Minister Tony Burke.
Regional Dependence on Backpacker Labor
In the Kimberley region, which includes towns such as Kununurra approximately 3,000 kilometres north of Perth and Broome, businesses rely heavily on backpackers for crucial manual and service tasks. These roles include fruit picking, shelf stacking, and café service. Zac Cederholm, an American who manages a cafe in Kununurra, expressed the importance of extended visa options for retaining staff in remote
areas.
“I did come here to work towards my third year visa, and if that wasn’t an option, I would never have come here,” Cederholm said. He added that having staff available for six months offers a level of stability and dependability essential to businesses in the area.
Accommodation for backpackers in these regions typically consists of hostels, dongas, and shared houses, with single-house rentals seldom taken up by this workforce.
Industry Feedback on Visa Policy Impact
Bill Tatchell, Chief Executive of Australia’s North West Tourism, described the visa reform as “incredibly frustrating” and “devastating” for the region’s economic health, stressing reduced incentives for backpackers to
work in regional Australia. Similarly, Keda Bond, CEO of the East Kimberley Chamber of Commerce, labelled the cuts a “kick in the gut” and criticized the government for neglecting regional business needs in the policy changes. Bond expressed apprehension over the diminished workforce availability that traditional seasonal roles rely upon.
Skilled Worker Shortages and Delayed Facility Openings
The visa policy changes have contributed to broader workforce shortages affecting regional enterprises beyond casual roles. The opening of the Pindan Beef Company abattoir near Broome has been postponed until 2027 due to a lack of skilled workers and visa processing delays. Haydn Sale, General Manager of Yougawalla Pastoral Company
affiliated with Pindan Beef, noted that only one skilled worker application came from an Australian resident, with others delayed in visa approval processes.
Sale traveled to Canberra to advocate for expedited visa processing for the workers essential to their operations, stating, “I was pleasantly surprised that you can get into Parliament House and you can rattle around and make your case.” However, he feared his concerns might not have reached policymakers without this direct lobbying effort.
Conclusion
The progressive implementation of these visa reforms reflects the government’s strategy to control migration numbers but risks heavily disrupting the labor supply in remote
Australian regions reliant on backpackers and skilled migrants. Businesses across the Kimberley region and Australia’s north continue to voice concerns over staffing viability and the broader economic impact of the reduced working holiday visa entitlements.
