Small businesses in the Kimberley say the Federal Government’s decision to cap third-year Working Holiday Maker (WHM) visa extensions at 5,000 a year is already reverberating across the region. Hospitality, retail and agriculture employers in towns such as Kununurra and Broome rely heavily on backpackers to plug seasonal skills gaps. Under the reform, announced last month as part of a broader migration reset, backpackers will have to enter a ballot for a chance to stay a third year, down from the current 31,000 extensions. Operators fear the loss of a critical incentive will shrink the pool of young travellers prepared to work in remote areas. Café manager Zac Cederholm told the ABC he only moved north to secure his third-year visa and would “never have come here” without that pathway. Tourism body Australia's North West warns the change could wipe millions of dollars from the regional economy if cafés, tour operators and farms are forced to reduce trading hours or close during peak season. Business leaders argue the policy collides with the government’s own push to grow regional tourism and develop northern Australia. They are lobbying Canberra to either scrap the cap or classify remote backpacker labour as ‘essential’, similar to pandemic-era concessions granted to agricultural workers. Employers are also calling for faster processing of Pacific Australia Labour Mobility (PALM) scheme visas, which the government says will partially offset fewer backpackers but which businesses say cannot fill short-term gaps. For global mobility managers, the episode is a reminder that Australia’s migration settings can shift quickly and carry significant operational risk for companies with regional footprints. Firms that depend on WHM labour should review workforce plans for 2027 and consider alternative visa pathways, such as the PALM scheme or short-stay specialist visas, while monitoring ballot instructions expected early next year.
Source: ABC News
