Australia seeks changes to UK backpacker visa agreement

The current free trade agreement between the two nations allows British citizens participating in the Working Holiday Maker program to remain in Australia for up to three years without mandatory regional work requirements. This contrasts with other Working Holiday Maker visa holders, who typically need to work in rural areas to extend their visas beyond one year.

The number of British backpackers has significantly increased, rising from approximately 47,000 in 2024 to nearly 80,000 last financial year, according to data from the Department of Home Affairs. Facing pressure to reduce net overseas migration, Mr. Albanese will raise the issue with Mr. Burnham at the Commonwealth Heads of Government Meeting (CHOGM) in Antigua and Barbuda.

This shift in approach represents a change from Mr. Albanese’s earlier stance, where he stated in August that alterations to the British backpacker exemption would not occur. He recently noted the concentration of UK backpackers in urban areas like Bondi Beach and Coogee, and their employment in the hospitality sector, contributing to labor market distortions.

The Coalition and One Nation have consistently advocated for maintaining backpacking visa programs, emphasizing their importance to regional economies. The National Farmers’ Federation (NFF) has also highlighted the vital role backpackers play in the agricultural sector.

Concerns over workforce shortages in regional areas prompted the government to slow visa processing in August, followed by an emergency agreement with the NFF in September to expedite urgent visa requests for harvest workers. Proposed changes from Home Affairs Minister Tony Burke include a ballot and cap system, limiting second-year extensions to 45,000 with an 88-day regional work requirement, and third-year extensions to 5,000 with a six-month regional work requirement.

NFF head Michael Guerin acknowledged the prime minister’s discussions but stressed that the workforce issue extends beyond the UK agreement, citing visa processing delays and the proposed cap system. “It’s a step in the right direction, but not dealing with the fundamental underlying issue,” he stated. He emphasized that overseas workers account for one in seven of Australia’s food production workforce.

Opposition Leader Angus Taylor criticized Mr. Albanese’s approach as “desperate,” despite the Coalition’s support for encouraging backpackers to work in rural areas. Nationals leader Matt Canavan proposed a fee for backpackers staying in capital cities to incentivize regional work.