The Australian federal government will reduce the number of third-year working holiday visa extensions from 31,000 issued this year to 5,000 through a ballot system starting within the next year. This adjustment forms part of broader immigration reforms aimed at cutting migration numbers.
Backpackers seeking a second-year visa extension must complete 88 days of approved work in regional or remote Australia, while those applying for a third-year extension are required to work six months in such areas. Under the new regulations, only 5,000 applicants will receive a third-year extension, decided by lottery, a significant drop from the current 31,000.
Regional Business Concerns over Reduced Visa Extensions
Businesses
in Western Australia’s Kimberley region express serious concerns about the reduced availability of third-year visa extensions. Zac Cederholm, an American barista managing a cafe in Kununurra approximately 3,000 kilometres north of Perth, stated that he would not have moved to the remote town without the opportunity to apply for a third-year visa extension. He emphasized that incentives to retain backpackers for up to six months provide workforce consistency and reliability.
Bill Tatchell, chief executive of North West Tourism, described the visa policy changes as “devastating” and “incredibly frustrating” for the region’s backpacker-dependent labor force. Similarly, Keda Bond, chief executive of
the East Kimberley Chamber of Commerce, labeled the reform a “kick in the gut” for remote businesses and criticized the government for ignoring the impact on regional Australia.
Impact on Kimberley Staffing and Housing
Backpackers perform essential roles in remote Kimberley towns, including fruit picking, shelf stocking, and table service. Most temporary workers live in shared accommodations such as hostels and dongas rather than individual houses. Zac Cederholm highlighted that none of the backpackers he knew rented single homes, indicating the limited but crucial housing arrangements for this workforce.
Pindan Beef Company Reopening and Worker Shortages
Yougawalla Pastoral Company is reopening the Pindan Beef Company’s abattoir near Broome but has faced difficulties recruiting
skilled workers. According to Yougawalla’s general manager Haydn Sale, there has been only one application from an Australian resident for necessary roles, while several skilled applicants have experienced visa processing delays. These issues have contributed to postponing the abattoir’s reopening until 2027.
Lobbying Efforts and Government Alternatives
Haydn Sale traveled to Canberra to lobby politicians for expedited visa processing to secure workers for the Pindan Beef abattoir. He noted that without this direct engagement, his case might not have been addressed. The federal government has promoted labour sourced from Pacific nations through the Pacific Australia Labour Mobility (PALM) scheme as an alternative to the declining
backpacker workforce due to visa restrictions.
