In a shift aimed at addressing labor shortages in regional areas, the Australian government is seeking revisions to its free trade deal with the United Kingdom. The proposed changes aim to encourage British backpackers to move beyond urban hotspots like Sydney and instead work in rural and remote regions. This follows an increase in the number of Brits on working holiday visas since 2023, as the agreement has granted them exemptions from regional work requirements beyond their first year. The surge in British backpackers has been a significant factor in the decline of international workers in cities like Cairns, where they once made up a substantial portion of the transient population. However, the Australian government is now expressing concerns about this trend, as Brits are increasingly viewing their stay as extended career breaks rather than working holidays. The discussions on this matter were brought up at a recent meeting of Commonwealth leaders, although no immediate changes have been announced. The proposed adjustments could include introducing a ballot system for backpackers seeking to extend their stays and limiting the number of second and third-year visas issued to Brits. This move is intended to address labor shortages in sectors such as agriculture and tourism, particularly in regions like Far North Queensland that rely heavily on temporary foreign workers.
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The Australian government's push for changes in the free trade deal comes amid broader concerns about migration levels. The resurgent right-wing populist One Nation party and the opposition coalition have been advocating for net migration cuts, which could impact the working holiday visa system. Proposed changes include a cap on the number of second-year visas issued to backpackers and a significant reduction in the number allowed for a third year. These plans are currently under consultation, and some working holiday visa applications have reportedly been affected by slower processing rates and pauses from certain countries.
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The decline in British backpackers in cities like Cairns has had noticeable effects on businesses that rely on this transient workforce. For instance, the Mad Monkey backpacker hostel chain, which once saw a large number of Brits as its primary clientele, now reports that French travelers outnumber British guests three to one. Similarly, Fintan Rafferty, a Cairns restaurateur, has seen his British staff decrease significantly since the visa rule changes, with only five British workers currently on his payroll compared to 25 prior to the change. These businesses have been lobbying the government, arguing that backpackers bring both spending power and temporary labor needed to fill seasonal roles in regions like Cairns, which is famous for its access to the Great Barrier Reef and Daintree Rainforest.