Government back to the drawing board on backpacker crackdown

The government is reconsidering its controversial overhaul of the working holiday visa scheme.

Home Affairs Minister Tony Burke says he is also looking at ways to reduce the number of British backpackers coming to Australia.

Business leaders are urging the government to provide certainty to industries that rely on backpackers to fill jobs.

Home Affairs Minister Tony Burke has all but confirmed the government is going back to the drawing board on its proposed backpacker crackdown, as it grapples with the twin issues of a surge in UK working holiday-makers and pressure to rein in overall migration.

On Friday, Mr Burke said Australia must "find a way" to reduce the number of UK backpackers arriving and staying in the country under a free trade deal introduced in 2023, which allows British citizens to live in Australia for up to three years without specific work requirements.

"We can find a way to bring that back to something more sensible and in the national interest, without jeopardising the other parts of the free trade agreement," he said.

In August, Prime Minister Anthony Albanese ruled out imposing regional work requirements on backpackers from the UK, which apply to other working holiday-makers seeking to extend their visas beyond 12 months.

The favourable treatment has led to a steep increase in the number of British backpackers coming to Australia, up from 47,238 in 2023/24 to 79,412 in 2024/25 according to Home Affairs data.

"The conversations with the United Kingdom continue," Mr Burke said.

The government had also proposed introducing a ballot system for non-British backpackers seeking to extend their stay into a second or third year, to dramatically reduce visa numbers.

The Australian newspaper reported the government was now considering delaying the rollout of the ballot system until early next year, after farming, tourism and hospitality groups warned the changes could cripple their industries.

The report suggests the government is considering lifting the cap on third-year visas from the proposed 5,000 to 20,000 (down from the current 31,000) and imposing longer regional work requirements on visa-holders.

Mr Burke said the government was continuing to engage with industry stakeholders, but the "parameters" around reducing the overall number of working holiday-makers were unchanged.

"The total number of working holiday or backpacker numbers that I've announced at the National Press Club, I cannot shift from," he said.

He described potential changes to the implementation as "tweaks" that would allow businesses to "get the best possible use out of people, while they are here".

"I am completely open to that," he said.

Australian Chamber of Commerce and Industry (ACCI) chief executive Andrew McKellar said there had been "extensive discussions" between the government and affected industries about the backpacker issue.

He warned the original proposal risked disrupting businesses outside major cities, particularly in regional areas that relied on working holiday-makers to fill jobs.

"And those regional areas really need those people to be coming out there and to be undertaking that work, supporting work in those areas," he said.

Mr McKellar said business groups wanted the government to "make a decision", warning the "clock is ticking" for businesses seeking certainty ahead of summer.

"Let's ensure that those people who are already here can continue with their plans … and that there's a fresh set of rules for anyone else who's coming in," he said.

Community Strong MP Allegra Spender said growing uncertainty was becoming increasingly painful for businesses.

"What I'm seeing in the migration system more broadly is very slow processing times and not real honesty about where this is all going," she said.

"When you're employing someone where you've in the past been able to get some money in pretty quickly, and now it's taking months, there's that uncertainty that is really damaging for businesses".

The government paused working holiday-maker visa applications from 24 countries in August.

Mr Burke said the government was "very close" to a resolution.