Overview
- The government announced caps in September that cut second-year working-holiday places from 57,000 to 45,000 and third-year places from 31,000 to 5,000 as part of a plan to lower net migration.
- Industry witnesses told a federal inquiry that the September announcement has already prompted seasonal workers to leave regional towns and travel agents to advise prospective backpackers not to come because of uncertainty.
- Home Affairs data show a large rise in UK working-holiday arrivals after a 2023 trade provision, increasing from 47,238 to 79,412 and creating quota pressure that complicates policy choices.
- The government signalled a rethink in mid-November and is discussing implementation changes such as raising the proposed third-year cap toward about 20,000–25,000 and delaying the proposed ballot for non‑UK applicants.
- Businesses and industry groups are urging a quick, clear fix ahead of the summer and harvest seasons because continued uncertainty risks immediate labour shortages, lost bookings for regional tourism and weaker harvest capacity.