The Albanese Government has confirmed it will formally limit the number of second-year Working Holiday (subclass 417/462) visas that can be issued each year to 45,000 and restrict third-year renewals to just 5,000 places. Tourism Minister Tony Burke says the change is designed to “rebalance” the migration mix and bring net-overseas-migration (NOM) down to the government’s target of 225,000 by 2027-28. Holiday-makers from the United Kingdom – who are no longer required to complete 88 days’ regional work – will be exempt from the ballot. The announcement has rattled employers across northern and regional Australia who rely heavily on backpacker labour. A survey by the Townsville Chamber of Commerce shows 70 % of local businesses employ at least ten Working Holiday makers and, in some hospitality venues, backpackers make up half the workforce. Hotelier Bart Furst told The Guardian that without access to the program he will “struggle to keep the doors open through peak season.” Economic modelling by Tourism Research Australia estimates every 100 Working Holiday visas generate the equivalent of five full-time jobs once multiplier effects are counted. The Cairns and Townsville chambers warn the new caps could shave up to 0.3 percentage points off Far North Queensland’s gross regional product if backpackers choose New Zealand or Canada instead. Migration academics say the reform is politically safer than reducing international student numbers because the university sector is a powerful lobby. But Griffith University’s Dr Kaya Barry argues the policy widens the divide between metropolitan and regional Australia: “Cities get the benefit of lower housing demand, while country towns lose critical labour and cultural vibrancy.” For visa-holders like Canadian barista Sydney Schetter—who has spent seven years in Australia under a succession of WHM extensions—the ballot means she is unlikely to attempt a second year in future. “I’d probably go straight to New Zealand,” she says, highlighting a trend that could see Australia’s competitive edge in youth mobility eroded if alternative destinations act more liberally.
Source: The Guardian
