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Australia’s new visa rules will require backpackers to enter a ballot to extend their stay

Young travellers will soon face a lottery, with working holiday visas cut by up to 84%

Melissa Woodley
Written by
Melissa Woodley
Editor, Time Out Australia
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Living at Sydney’s Coogee Beach, I’m surrounded by Irish expats – many of whom came on working holiday visas, fell in love with Australia and decided to stay. But for many, their future Down Under is suddenly uncertain. Home Affairs Minister Tony Burke recently announced major changes to Australia’s Working Holiday Maker program, with second- and third-year visas soon moving to a competitive lottery system.

The current Working Holiday Maker scheme requires those hoping to stay a second year in Australia to complete 88 days of regional work, or those applying for a third year to do an additional six months. Under the proposed changes, hopefuls will need to enter a ballot for a chance to secure a visa from a drastically reduced pool.

The government will cap second-year working holiday visas at 45,000 – down from 57,000 last year. Meanwhile, third-year places will drop from 31,000 to just 5,000, marking a massive 84 per cent reduction. It’s worth noting that British backpackers will be exempt from these lottery caps thanks to the Australia-UK Free Trade Agreement, which allows them to stay for two or three years without doing any regional work.

The visa slash isn't just bad news for backpackers – it’s a major concern for tourism, hospitality and farming businesses, particularly in regional Australia. They face losing a large part of their workforce, with industry experts warning that the lottery system could deter first-year backpackers from coming to Australia altogether, deciding it simply isn't worth the risk.

The tightening rules don't stop with backpackers. As part of a broader crackdown across Australia's immigration rules, new international student and graduate visa holders will no longer be permitted to bring their families to Australia, unless they’re studying a PhD or are from Southeast Asia or the Pacific. Additionally, students wishing to stay longer must choose a higher qualification.

The Department of Home Affairs said the ballots would begin rolling out by the end of 2026. It’s unclear what the new rule change means for backpackers already in the country, including those midway through their 88 days of regional work.

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