Australia Seeks Rule Changes to Encourage Backpackers to Work in Regional Areas

The Australian government is currently reviewing a free trade agreement with the UK, prompting many to ask why Australia is pushing to change visa rules for British backpackers. While the nation remains a top destination for international travellers, officials are concerned that recent policy changes have led to a concentration of workers in urban hubs like Sydney's Bondi and Coogee beaches rather than in the rural communities that rely on seasonal labour.

Under the existing trade deal, British citizens on working holiday visas are exempt from the requirement to perform 88 days of specified regional work to qualify for visa extensions. This exemption, combined with an increase in the eligible age limit to 35, has contributed to a surge in British visa holders, rising from 47,200 in 2023-24 to over 77,000 in 2025-26. However, regional businesses, particularly in the agricultural and hospitality sectors, report that they are struggling to find enough staff.

Australia wants to redirect British backpackers from major cities to fill critical labour shortages in regional areas.

Labour shortages in the outback

Industry leaders, including the National Farmers Federation, note that backpackers are essential to the agricultural workforce, accounting for one in seven farm jobs. In Far North Queensland, tourism and hospitality operators have seen a decline in British staff, with some hostels reporting that other nationalities now outnumber British travellers three to one. Prime Minister Anthony Albanese recently discussed the matter with his UK counterpart, Andy Burnham, indicating that the free trade agreement is not fixed and could be adjusted for policy reasons.

Beyond the specific UK agreement, the government is also considering broader migration reforms. Proposals include a new ballot system for visa extensions and caps on the number of backpackers permitted to stay for second and third years. These measures are being debated amid pressure to reduce net migration levels, though the government has yet to finalise any immediate changes to the current visa framework.

Why it matters

The potential policy shift highlights the tension between maintaining open trade relations and managing domestic labour needs. If implemented, these changes would primarily affect young British travellers, forcing them to choose between working in remote industries or leaving the country sooner. For regional Australian communities, the move is intended to restore a vital supply of temporary labour, though the broader national debate on migration caps continues to create uncertainty for the tourism and agricultural sectors.