The Albanese government has quietly paused working holidaymaker visa applications from 24 countries, sparking concerns about the impact on the tourism industry and regional employers. This move comes as a political stoush brews over whether to curtail the number of backpackers in Australia. The pause on applications from countries with caps was introduced without notice, adding to the confusion. Backpacker and Youth Tourism Advisory Panel chair Peta Zietsch warns that this decision, combined with recent visa fee increases, could deter backpackers and negatively affect tourism operators and regional employers who rely on them for seasonal work. The working holidaymaker program has been a key driver of higher migration since 2022, making up 17.5% of the net migration figure in 2024-25. The Albanese government's May budget papers flagged plans to expand the use of ballots or lotteries to control demand and numbers. Home Affairs Minister Tony Burke is expected to outline these plans in his delayed National Press Club address, aiming to meet a 225,000 net migration target within two years. The Coalition's housing spokesman, Andrew Bragg, has also targeted working holidaymakers as part of a broader plan to reduce overall migration to about 180,000. However, Nationals leader Matt Canavan dismissed the idea, arguing that working holidaymakers are not the primary cause of the migration crisis. Data shows that working holidaymakers have been a significant contributor to higher migration, with 225,648 working holidaymakers in the country at the end of the financial year. The government's pause on applications from countries with caps, including China, India, and Vietnam, is highly unusual, according to immigration expert Abul Rizvi. This pause may be temporary to manage demand or organize lotteries for other countries. The government has indicated a potential expansion of the lottery system to other countries. Removing the third-year visa, introduced during the pandemic, could also reduce net migration by 5000-10,000 people annually, but it would face opposition from various groups. The contest over working holidaymaker visas highlights the challenges for the Coalition in balancing migration reduction with the needs of regional areas that rely on labor migration. One Nation's migration policy faces a similar dilemma, aiming to retain working holidaymaker visas for regional workforces while limiting overall visa issuance to 130,000 annually.
