A federal decision to cut the number of Working Holiday Makers in Australia has drawn fury from the tourism and travel sector. The Tourism & Transport Forum calls it an extraordinary slap in the face for an industry already under pressure.
Home Affairs Minister Tony Burke announced the change on 17 September 2026 at the National Press Club in Canberra. The model cuts Working Holiday Maker visa numbers by close to 40,000 places a year. Hotel Management puts the cut at at least 38,000 visas a year.
Second-year places capped at 45,000
A ballot will limit the number of visitors who can stay in Australia beyond one year. Eligibility for a second-year stay is capped at 45,000 places. The third-year ballot is restricted to 5,000 places. A six-month regional work requirement applies to the third year.
Burke said 57,000 people qualified for a second year last year and 31,000 sat in the third-year group. The caps put second-year places 21 per cent below last year and third-year places 84 per cent below last year.
A second-year stay requires 88 days of regional work. The NSW Tourism Association says a backpacker can complete the 88 days and still miss out under the ballot.
Osmond: tens of thousands out of the pipeline
TTF chief executive Margy Osmond said the tourism sector felt blindsided, and that the change will make it harder to attract visitors and workers.
“This is not a minor adjustment; the government has taken tens of thousands of potential visitors and workers out of the pipeline,” she said.
Osmond said the government announced the changes without consultation on their impact. She said a three-month processing timeframe could lock in the slowdown that has already caused problems for tourism businesses.
NSW Tourism Association: the rug pulled out
The NSW Tourism Association says the ballot system pulled the rug out from under regional NSW. It cites ATIC modelling of 1,070 NSW tourism jobs and $165.1 million in annual visitor spending at risk under the ballot for second and third year visas.
The association says the incentive for backpackers to take regional tourism work has diminished, and that the damage could start in the first year.
ATIC: a 43 per cent cut
The Australian Tourism Industry Council estimates the changes strip $560 million in annual visitor spending from the economy and cost 3,800 Australian tourism jobs. It puts the cut to longer-stay regional backpackers at 43 per cent.
“These changes will slash longer-stay regional backpackers by 43 per cent and take over half a billion dollars in visitor spending out of the economy and cost 3,800 Australian tourism jobs,” ATIC chief executive Erin McLeod said.
McLeod said a backpacker can complete the regional work and still lack the certainty of a next visa.