Australia will reduce the number of working holiday visas available for second- and third-year extensions and introduce a lottery system for third-year applications, effective September 18, 2026. The annual quota for third-year working holiday visas will drop from 31,000 to 5,000, accessible only through a paid lottery. Second-year visa allocations will decrease from 57,000 to 45,000, totaling a cut of 38,000 visas over two years.
Background and Policy Shifts
The changes respond to Australian government efforts to manage immigration levels following a surge in new arrivals after lifting pandemic restrictions. The government aims to prioritize skilled migrants such as construction workers, doctors, nurses, agricultural
specialists, resource experts, and law enforcement officers instead of backpackers. The Australia-UK free trade agreement signed two years ago increased British backpacker visa holders from 35,000 to nearly 80,000 by removing the 88-day regional work requirement and raising the age limit from 30 to 35.
Impact on Backpackers and Visa Processing
Backpackers applying for third-year visa extensions must now enter a lottery and pay a fee, replacing the previous requirement to complete 88 days of regional work annually. Visa processing times have dramatically extended since July 2026; applications that formerly took two to three days now face waits of weeks or months. Matthew Heyes, founder of
Backpacker Job Board, said the Australian Home Affairs website did not update processing times when delays began, causing confusion among applicants.
Concerns from Tourism and Farming Sectors
Tourism operators and regional farming businesses that rely on backpackers for fruit picking, fence mending, and similar labor express alarm over the reduced visa numbers. Max Gibson, general manager of the Mahony Group, which operates pubs and backpacker hostels from Melbourne to Cairns, reported forward bookings are down 25% following the policy changes. Gibson described the last two months as the worst since the COVID-19 pandemic for many tourism members.
Official Responses and Government Initiatives
Home Affairs Minister Tony Burke acknowledged the increased number
of UK backpackers as a “challenge” and assured that visa processing times would normalize. The government is encouraging businesses to recruit via the Pacific Labour Mobility program, which admits workers from Pacific island nations. New policies will also bar international students from bringing family members and strengthen enforcement against visa overstayers as part of broader immigration control.
Backpackers’ Experiences Amid Policy Changes
French backpackers affected by the visa reforms report increased stress and uncertainty. Zoe, 25, said working the required 88 days now does not guarantee a third-year visa without costly lottery entry. She described the mood among backpackers as “low”. Laura, 28, from northern
France, has worked three months as a commercial cleaner and hopes to gain a third-year visa and later permanent sponsorship. She noted that backpackers do jobs Australians avoid by working in remote regions. Zoe expressed frustration, saying, “I knew that it was worth it because I would like to get my third year without any problem and be able to enjoy 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?”
