Tourism and agriculture operators told a parliamentary inquiry on 12 November 2026 that thousands of working-holiday makers are abandoning regional jobs after the Government capped second- and third-year Working Holiday visas. The cap, announced in September, drops second-year places from 57,000 to 45,000 and slashes third-year visas from 31,000 to just 5,000, with a ballot replacing the automatic extension previously granted to backpackers who completed 88 days of regional work. Evan Hall of the Australian Tourism Industry Council likened the policy impact to "a natural disaster", citing staffing shortages already hitting seasonal hotspots such as Exmouth’s whale-shark tours. Backpackers from France and Germany, once a mainstay of hostel and farm labour, are reportedly cutting trips short or bypassing Australia altogether in favour of Canada and New Zealand’s more permissive schemes. The inquiry heard that the perceived ‘broken promise’ is undermining recruitment agencies that match travellers with farm and hospitality roles. Travel agents have begun advising clients against planning a multi-year stay unless they obtain a skilled visa. For global mobility teams moving staff to remote mine sites, resorts or agri-businesses, the shrinking pool of backpacker labour could elevate wage costs, increase reliance on the Pacific Australia Labour Mobility (PALM) scheme and accelerate demand for employer-sponsored skilled visas. Employers should review workforce models and engage with the inquiry’s forthcoming recommendations, expected early 2027. Home Affairs Minister Tony Burke maintains the caps are necessary to rebalance migration and protect local jobs, but industry groups are lobbying for carve-outs in sectors facing acute shortages. The debate foreshadows a more competitive landscape for temporary labour in Australia’s regions.
Source: Neos Kosmos / AAP
