By Ben Kerrigan-
Prime Minister Anthony Albanese has ruled out forcing British backpackers to complete regional work in Australia, effectively closing off a proposal that threatened to create diplomatic tensions with the United Kingdom as the federal government prepares a broader overhaul of migration policy. British citizens travelling to Australia on Working Holiday Maker visas currently enjoy more favourable conditions than backpackers from most other countries. Under the Australia-United Kingdom Free Trade Agreement, which came into force in 2023, eligible British citizens can remain in Australia for up to three years without having to complete specified regional or remote work to extend their visas. Backpackers from other countries generally face regional work requirements if they want to stay beyond their initial 12-month visa period. The difference in treatment has helped make Australia an increasingly attractive destination for young British travellers, with Home Affairs figures showing the number of British backpackers rising sharply from 47,238 in 2023-24 to 79,412 in 2024-25.
The surge has become significant as the Albanese government seeks to reduce temporary migration and bring down net overseas migration. Officials had been considering whether introducing regional work requirements for British backpackers could reduce the appeal of the visa program and help slow the flow of temporary arrivals. However, the proposal raised concerns within government because changing the conditions for British citizens could conflict with commitments made under the free trade agreement. The issue was particularly sensitive given the government’s broader efforts to promote adherence to international trade agreements.
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Mr Albanese intervened on Wednesday afternoon to make clear that the special arrangements for British citizens would remain unchanged.
“The UK situation is a separate agreement as a result of the UK free trade agreement which we are certainly honouring,” he said.
His comments came shortly after UK Home Secretary Shabana Mahmood met Australian Home Affairs Minister Tony Burke on the sidelines of a Five Eyes meeting in Sydney. While Mr Burke did not confirm whether the proposed changes had been discussed directly, he acknowledged that migration issues were part of the regular discussions between the two governments.
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“We talk regularly about all migration issues, about the issues we are managing in each of our countries,” Mr Burke said.
He added that any changes to Australia’s migration program would ultimately be decisions for the Australian cabinet. The decision on British backpackers comes as the government prepares a much broader package of measures aimed at slowing migration. Mr Burke had been expected to announce the reforms several weeks ago, but the announcement was postponed and a new date has yet to be confirmed.
Labour has committed to reducing net overseas migration from about 300,000 people currently to 225,000 by 2028. Backpackers are an important part of the temporary migration picture, with a record 321,116 Working Holiday Maker visas issued last year, compared with 234,556 the previous year.The government has already taken steps to slow the processing of some visa applications. Mr Burke last month paused the processing of applications from 24 countries, including Argentina, Chile, Spain, Poland, Thailand and Malaysia, while overseas applicants for skilled visas were pushed behind applicants already in Australia.
“The processing of backpacker visas across the entire program is happening more slowly than it was,” Mr Burke said, indicating that the government could reduce arrivals through administrative measures without changing the underlying rules of the British agreement.The broader approach has nevertheless generated uncertainty across industries that depend heavily on temporary migrant workers. Tourism, hospitality and regional businesses have expressed concern that slower visa processing and tighter migration settings could leave them struggling to fill vacancies, particularly in areas where local labour supplies are limited.
One business representative described the situation as having brought activity to a standstill, reflecting growing frustration among employers trying to understand how the government’s evolving migration policies will affect their workforces.The political debate is also intensifying. One Nation and the Coalition have both promised substantial reductions in migration if given the opportunity to reshape Australia’s migration system. Yet neither party has supported cutting backpacker visas, which remain particularly popular in regional communities and provide workers for tourism, hospitality, agriculture and other industries.
For the Albanese government, the decision to preserve the British arrangements represents a balancing act between reducing migration and maintaining Australia’s international commitments. While British backpackers will avoid a new regional work requirement, the wider Working Holiday Maker program is still likely to face slower processing and tighter administration as Labor attempts to meet its ambitious migration targets. The outcome also demonstrates the limits of Australia’s efforts to curb temporary migration when existing international agreements place conditions on what the government can change. For now, British backpackers retain their special status, while the government turns its attention to other parts of the migration system in its effort to reduce arrivals without undermining key trade relationships or leaving critical industries without workers.
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