Australia pushes to redirect UK backpackers from Sydney to regional outback

Dan McConnell, general manager of the Mad Monkey hostel chain, says many British visitors now view their trip as a three‑year career break rather than a traditional working holiday. He notes that French tourists have supplanted British guests at his Cairns accommodation, outnumbering them three to one.

Mr McConnell adds that British travellers often head to Sydney, fall in love with the city, and choose to remain there instead of venturing further inland.

Under Australia’s working‑holiday visa scheme, nationals from most countries must complete 88 days of specified regional work—typically in agriculture, fisheries, tourism or hospitality—to qualify for a second‑year extension, and six months of such work for a third‑year stay. British backpackers have been exempt from these requirements as part of the UK‑Australia free‑trade agreement.

Prime Minister Anthony Albanese initially ruled out imposing the same obligations on UK visitors, accepting the exemption as a trade‑deal condition. However, mounting pressure from businesses in Far North Queensland and other regional communities, concerned about labour shortages, has prompted a shift in policy focus.

During a recent Commonwealth leaders’ meeting in the Caribbean, Mr Albanese conferred with UK counterpart Andy Burnham. Backpacker policy was on the agenda alongside topics such as AI, online gender‑based violence, and the AUKUS defence pact.

Despite media speculation, no immediate announcement was made. Albanese told reporters he had advocated for changes to the backpacker rules and described Burnham’s response as “very constructive.” He indicated that the free‑trade agreement could be adjusted “if there are good policy reasons,” and that the matter would be worked out in the coming weeks.

Working‑holiday makers fill roughly one in seven farm jobs across Australia. According to the National Farmers Federation, about 52,000 visa holders work in horticulture each year.

The federation welcomed Albanese’s discussions with Burnham but stressed that labour shortages in agriculture extend beyond the UK arrangement.

More pressing concerns centre on broader migration‑reduction proposals announced in September. Political pressure from the right‑wing populist One Nation party and the opposition coalition has spurred plans to overhaul the working‑holiday visa system, introducing a ballot for extension applications. Caps would limit second‑year extensions to 45,000 (down from 57,000 this year) and third‑year stays to 5,000 (down from 31,000). The federation describes these cuts as “a low blow.”

The reforms are still under consultation, though immigration authorities have already slowed and paused processing for some working‑holiday visa applications from certain countries.

Tourism Tropical North Queensland chief executive Mark Olsen has lobbied Albanese, arguing that backpackers provide both spending power and essential temporary labour for seasonal roles in a region celebrated as a gateway to the Great Barrier Reef and the UNESCO‑listed Daintree rainforest.

He reports that the number of young British nationals temporarily living and working in the area has fallen from a peak of about 20,000 to roughly 11,000. Olsen attributes the decline to the UK‑Australia free‑trade agreement, which took effect when border restrictions were lifted in 2023.

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