The Australian federal government has introduced significant restrictions to the Working Holiday Maker visa program, reducing the number of third-year visa extensions and sparking concern among businesses in remote areas of Western Australia’s Kimberley region.
New Ballot System and Reduced Visa Extensions
Immigration Minister Tony Burke announced a ballot system limiting third-year visa extensions to a cap of 5,000 places, down sharply from 31,000 currently available. Backpackers seeking a second-year visa must complete 88 days of work in regional or remote Australia, while those aiming for a third-year extension need to work six months in those areas. The changes are set to be phased in over the
next year.
Zac Cederholm, an American barista managing a café in Kununurra—nearly 3,000 kilometres north of Perth—stated he would not have come to the region without the possibility of a third-year visa. “I did come here to work towards my third year visa, and if that wasn’t an option, I would never have come here,” he said.
Impact on Staffing and Housing in Remote Areas
Backpackers perform essential roles in remote industries such as fruit picking, shelf stacking, and hospitality. The visa changes threaten the stability of staffing in these sectors. Cederholm noted the importance of workers staying up to six months for business reliability. However, he also
highlighted persistent housing challenges, observing that backpackers in the Kimberley mostly live in shared accommodation, hostels, or dongas, rather than single houses.
Regional Business Leaders Express Concern
Bill Tatchell, chief executive of North West Tourism, described the federal policy shifts as “incredibly frustrating” and “devastating” for the region’s economy, emphasizing the reduced incentive for backpackers to take regional jobs. Keda Bond, chief executive of the East Kimberley Chamber of Commerce, called the reduction in third-year visas a “kick in the gut” and said, “We feel the government is making changes without considering regional Australia at all.”
Local Business Efforts to Address Labour Shortages
Yougawalla Pastoral Company, based near Broome, faces difficulties in
sourcing skilled workers for its reopened abattoir, Pindan Beef Company, which has had to delay its opening until next year. General Manager Haydn Sale reported only one Australian resident applied for positions while visa processing for skilled overseas workers is delayed. Sale lobbied politicians in Canberra to expedite visa applications, saying he was “pleasantly surprised” by the access he received to Parliament House.
Government Migration Goals and Alternative Workforce Options
The federal government aims to reduce net overseas migration by restricting working holiday visas. Some regional businesses see the Pacific Australia Labour Mobility (PALM) scheme, which brings workers from Pacific nations, as a partial alternative to backpacker
labour, though concerns about adequacy remain. The new limitations on third-year visa extensions may reduce backpacker arrivals and workforce availability in remote and regional Australia.
