Federal Labor Caps Working Holiday Visas, Raising Alarm in Regional Queensland

Home Affairs Minister Tony Burke announced that the government will limit second-year working-holiday visas to 45,000 (down from 57,000) and third-year visas to 5,000, less than one-sixth of the roughly 31,000 currently issued. Applicants will now enter a ballot for the reduced places. The changes are part of a broader plan to cut net overseas migration (Nom) to about 225,000 in 2027-28, down from 292,000.

The Guardian

A recent survey by the Townsville Chamber of Commerce found that about 70 % of local businesses employ at least ten working-holiday visa holders, representing over 60 % of their total staff headcount. Bart Furst, director of the Kickon Group that runs the Watermark hotel in Townsville, says the hotel can staff 40-60 of its 120 employees on such visas because local labour is scarce. In Cairns, the local chamber estimates 5,500 working-holiday visa holders are present. Business owners warn that the caps could force reductions in hours or staff, echoing pandemic-era shortages that led some establishments to close.

The Guardian

The opposition Coalition has called for an even steeper cut to 100,000 net migration for the first two years from 2028-29, while One Nation proposes a zero-net-migration target.

The Guardian

Michael Healy, shadow minister for tourism, said the cuts could “slow the growth of Cairns” and even push the city toward recession. Federal Labor MP Matt Smith will lead a delegation of regional business leaders to Canberra to convey concerns, though he stopped short of demanding a reversal.

The Guardian

• “I wouldn’t even bother applying for my second year, maybe,” — Sydney Schetter, former working-holiday visa holder

The Guardian

• “You’ve got 49 nations who come into a regional town. The cultural immersion that the individuals get on the visa, but also the hosting communities in farming areas or tourism areas, it can’t be understated” — Sydney Schetter

The Guardian