On September 17, 2026, Australia reduced the number of third-year working holiday visas from 31,000 to 5,000 and second-year visas from 57,000 to 45,000, cutting a total of 38,000 visa places over two years. A new paid lottery system now determines which backpackers can extend their stay for a third year. The Australia-UK free trade agreement has allowed British backpackers to remain for two or three years without completing 88 days of regional work, raising the age limit from 30 to 35 and increasing the British working holiday population from 35,000 to about 80,000.
Backpackers face uncertainty as visa processing
times have lengthened dramatically since July 2026, stretching from typical 2–3 day approvals to weeks or months. Applicants must pay several hundred dollars to enter the lottery for a chance to secure a third-year visa. Zoe, a 25-year-old French backpacker, reported widespread anxiety among travelers. She stated, “Everyone’s talking about that. The mood is low.” Many working backpackers like Zoe and Laura, a 28-year-old from northern France, express concerns over the chance to secure third-year visas despite completing the required 88 days of regional work.
Impact on Tourism and Agricultural Labor
Tourism operators and farmers in regional Australia are experiencing labor shortages as fewer backpackers extend
their stays. Max Gibson, general manager of The Mahony Group and vice president of Youth Tourism Victoria, said forward bookings dropped by 25% after the visa changes. He added, “A lot of our members have said the same – that the last two months have been the worst they’ve experienced since Covid.” Farmers rely heavily on backpackers for seasonal work like fruit picking and fence repairs in sparsely populated areas. Laura said, “We are doing what Australians don’t want to do. Not all the Australians want to go to the bush and work in the middle of nowhere. We do
it because we want to stay.”
Government Justifications and Official Responses
The Australian government justifies the visa cuts by prioritizing skilled migrants such as construction workers, healthcare professionals, agricultural experts, and law enforcement officers. Home Affairs Minister Tony Burke called the surge in British backpackers a “challenge” to be addressed with UK counterparts. Burke also promised that visa processing times would return to normal. Matthew Heyes, founder of Backpacker Job Board, criticized the government for implementing a “go-slow” visa approval strategy in July without warning and for failing to update the Home Affairs website, which still listed 2–3 day processing times. He noted ongoing delays
for backpackers who applied from July onward. The government encouraged employers to use the Pacific Labour Mobility program to bring workers from Pacific Islands.
Broader Immigration Policy Shifts
The visa quota reduction and lottery system reflect political pressures amid Australia’s rising cost of living, housing shortages, and interest rate increases. These factors accompany growing support for anti-immigration policies led by Pauline Hanson’s One Nation party. Additional immigration reforms announced include barring international students from bringing family members and increasing enforcement against visa overstayers. The visa changes mark part of a broader government strategy to reduce casual migration and focus on skilled labor.
