kabarsula Tourism industry sounds alarm over ‘crippling’ working holiday visa changes bandar SLOT INDONESIA

Australia’s tourism, accommodation and farming industries have warned that proposed changes to the Working Holiday Maker (WHM) visa program could cost the economy billions and leave regional businesses struggling to fill workforce shortages.

Four major industry bodies have joined forces to condemn the Federal Government’s proposed introduction of a ballot system for second- and third-year working holiday visas, which they say could result in 38,000 fewer visa places than last year.

The Tourism & Transport Forum (TTF), National Farmers’ Federation (NFF), Accommodation Australia (AA) and Australian Chamber of Commerce and Industry (ACCI) have expressed outrage at what they describe as a lack of industry consultation.

The changes, unveiled by Immigration Minister Tony Burke at the National Press Club, would cap second-year visas at 45,000 places and third-year visas at just 5,000.

According to the industry coalition, this represents a reduction of more than 21 per cent in second-year visa places and more than 80 per cent in third-year places compared with 2025 approvals.

The group estimates the loss of 38,000 workers could result in $1.86 billion in lost wages.

Under the proposed system, Working Holiday Makers would only be eligible to enter the ballot for a second- or third-year visa after completing the required 88 or 179 days of regional work, respectively.

Industry leaders fear the uncertainty could discourage backpackers from undertaking regional work in the first place, worsening labour shortages in tourism, hospitality and agriculture.

They are calling on the Government to urgently consult with affected industries before the changes take effect in November.

The coalition is also seeking clarity on how the ballot will operate, including how places will be allocated and whether transitional arrangements will apply to Working Holiday Makers already in Australia who have completed their required regional work.

‘The Government has replaced certainty with a lottery’

TTF CEO Margy Osmond warned the changes could have lasting consequences for Australia’s international competitiveness.

“Let’s be clear: the Government has replaced certainty with a lottery. Without certainty of a second or third year, we risk dismantling the incentive for Working Holiday Makers to undertake regional work, with real consequences for the businesses and communities that rely on them,” Osmond said.

“Implementing these changes from November gives businesses just weeks to prepare, and with no consultation with the industries directly affected. A visa lost today is a worker lost tomorrow, and this uncertainty risks sending backpackers to competing destinations where they have greater certainty to stay, work and play.”

She warned the reputational and economic damage could be felt for years and called on the Government to reconsider the measures.

“These policies cannot go ahead as they stand. Workforce planning needs certainty, not a lottery.”

A ‘crushing blow’ 

Accommodation Australia CEO James Goodwin described the proposed changes as a “crushing blow” for hotels already struggling to fill workforce shortages.

“Why would the government be targeting people who are motivated, mobile and help fill seasonal work, especially in the regions?” he said.

“Creating a lottery for second-and-third year working holiday makers will distort the system and hurt many hospitality businesses and regional economies.”

Goodwin warned that uncertainty around securing a third-year visa could discourage workers from completing the regional work required to qualify.

“The Government needs to consult with industry before these changes take effect. We do not support a lottery. If there are caps, they need to be transparent, and second- and third-year visas should be awarded through a clear, merit-based system.”

NFF CEO Mike Guerin also raised concerns about visa processing delays and the potential impact on farmers preparing for harvest.

“The Government says it’s fixing the problem, but farmers still don’t know whether the workers they need for harvest will arrive in days, weeks or months,” he said.

“If applications are still expected to take around three months to process, they used to be processed in days. Calling this ‘processing at pace’ is neither fair nor transparent for farmers who need to harvest now.”

Guerin criticised the Government for introducing the changes without consulting the industries that rely on working holidaymakers.

“It’s absolutely galling the Government first put a go-slow on visa processing without consultation, then releases a plan without the detail needed.”