Australia slashes backpacker visa extensions, sparking alarm in farming and tourism sectors

On Thursday, Home Affairs Minister Tony Burke unveiled reforms to the working-holiday visa program, introducing a ballot for extensions and lowering the annual ceiling for second-year stays to 45,000 and for third-year stays to 5,000, compared with 57,000 and 31,000 respectively this year. The changes aim to prioritize migrants with skills needed in construction and agriculture, and to require successful applicants to undertake regional work.

Farming bodies, led by the National Farmers’ Federation’s Hamish McIntyre and chief executive Mike Guerin, say the slower three-month processing and lower caps threaten harvests, food security and farm safety, and could push food prices higher. Tourism representatives, including Evan Hall of Tourism Council WA and Natassia Wheeler of Queensland’s Tourism Council, warn the cuts will eliminate up to 4,500 backpackers in peak season, costing at least $62 million and 425 jobs, and will diminish spending on accommodation and services.

Regional producers such as Esperance farmer Mic Fels describe the reform as “catastrophic,” fearing labour shortages could lead to unsafe practices on large-scale farms. The industry is calling for urgent consultation before the plan proceeds.