On September 17, 2026, the Australian government announced a new visa regulation impacting backpackers, requiring working holiday visa holders seeking a third year in Australia to enter a paid lottery. The total number of third-year working holiday visas will be cut sharply from 31,000 to 5,000, while second-year visas will be reduced from 57,000 to 45,000, resulting in a combined decrease of 38,000 visa places over two years.
Visa applicants applying from July 2026 onward have experienced significant processing delays, with waits extending from weeks to months rather than the typical 2-3 days previously stated on the Department of Home
Affairs website. Backpackers now must pay several hundred dollars to enter the lottery for the reduced number of third-year visas, adding financial strain and uncertainty. French backpackers Zoe, 25, and Laura, 28, reported anxiety about the changes after working the required regional days, with Zoe saying, “Everyone’s talking about that. The mood is low.” Matthew Heyes, founder of Backpacker Job Board, criticized the lack of updated information and slow processing impacting thousands of applicants.
Impact of Australia-UK Free Trade Agreement on British Backpackers
Under a free trade agreement enacted two years ago, Australia relaxed visa conditions for British backpackers by removing the regional work requirement for extended stays and
increasing the age limit from 30 to 35. As a result, the number of British backpackers has more than doubled from 35,000 to nearly 80,000, creating a surge described by Home Affairs Minister Tony Burke as a “challenge” requiring bilateral discussions. This influx contributed to pressures leading to the recent visa quota reductions and lottery introduction.
Government Rationale for Visa Policy Changes
The Australian government cites these visa adjustments as part of a strategy to prioritize skilled migration over temporary backpacker workers. Officials indicated a focus on sectors needing construction workers, healthcare professionals, agricultural and resource experts, and law enforcement personnel to address economic and social
needs amid rising public concern over immigration levels following post-pandemic border reopenings. The changes also include barring international students from bringing family members and intensifying enforcement against visa overstayers.
Effects on Backpackers and Regional Labour Markets
Backpackers face reduced chances of securing longer stays despite fulfilling the 88 days of regional work previously guaranteeing visa extensions. Regional tourism and agriculture sectors warn of labor shortages as fewer working holiday visas are granted and processing delays persist. Max Gibson, general manager of the Mahony Group and vice president of Youth Tourism Victoria, said forward bookings for hostel accommodations are down 25%, with the current two-month period being the
worst since Covid-19. Farmers and regional operators express concern over losing vital seasonal workers who undertake roles such as fruit picking and maintenance.
Voices from Backpackers and Officials
Backpacker Laura, 28, described working in isolated regional roles to qualify for a third-year visa: “We are doing what Australians don’t want to do… We do it because we want to stay.” She added, “It’s not easy to be backpacker…our life is just in a backpack.” Zoe expressed uncertainty and stress: “I knew that it was worth it… But now I’m not even sure about that anymore. That’s a bit stressful, and I’m asking, what am I
doing all that for?” Tony Burke confirmed the government’s acknowledgment of rising British backpacker numbers and said visa processing delays will be resolved soon. However, Matthew Heyes noted current processing slowdowns are already impacting backpackers and employers, some of whom have postponed travel and hiring plans. The government recommends employers consider hiring laborers through the Pacific Labour Mobility program that recruits workers from Pacific island nations.
