Politics · Australia · 3 days ago
Australia plans lower caps on second- and third-year working holiday visas
Australia’s federal government plans to limit the number of working holiday visa holders who can stay for a second or third year.
The proposed caps are 45,000 for second-year visas, down from 57,000, and 5,000 for third-year visas, compared with about 31,000 issued now.
Applicants would enter a ballot, while people from the United Kingdom would be exempt.
Under the existing system, some workers qualify for a second year by doing at least 88 days of specified work in regional Australia.
Businesses in North Queensland say they depend on these workers to fill jobs, and fear the changes could make people less likely to work in the region.
A Townsville business survey found that about 70% of local businesses employed at least 10 working holiday visa holders, who made up more than 60% of their staff on average.
The proposed caps have drawn criticism from business groups and regional politicians, and eligible applicants would have to enter the ballot if the plan takes effect.
The federal government plans to cap second- and third-year working holiday visas, prompting warnings from regional Queensland businesses that the changes could worsen worker shortages.
The cap would limit second-year visa holders to 45,000, down from 57,000, and third-year holders to 5,000, compared with about 31,000 currently.
A Townsville chamber of commerce survey found about 70% of local businesses employed at least 10 working holiday visa holders.
Businesses say fewer visa holders could force them to cut hours or threaten their viability.
Some working holidaymakers say the proposed rules could make them less likely to apply for another year in Australia.
- Who
- Regional Queensland businesses and working holiday visa holders, alongside the federal government.
- What
- The government plans to cap second- and third-year working holiday visas. Businesses warn the changes could worsen worker shortages.
- When
- The home affairs minister announced the caps last month, according to the article published on 9 October 2026.
- Where
- Regional Queensland, including Townsville and Cairns.
- Why
- Businesses say they depend on working holiday visa holders to staff their operations. The government’s reason for the caps is not stated.
Regional Queensland businesses
Federal Labor government
Visa caps
Regional Queensland businesses
Businesses warn the caps could reduce the number of workers available in regional Queensland and harm local businesses.
Federal Labor government
The government plans to cap second-year visa holders at 45,000 and third-year holders at 5,000.
John Howard added a second year to working holiday visas, subject to a regional work requirement.
A third year became available for working holiday visa holders.
Sydney Schetter came to Australia from Alberta on a working holiday visa.
Home affairs minister Tony Burke announced caps on second- and third-year working holiday visa holders.
- Second-year cap
- 45,000, down from 57,000
- Third-year cap
- 5,000, compared with about 31,000 issued currently
- Townsville businesses
- About 70% employed at least 10 working holiday visa holders
- Watermark hotel
- Can employ upwards of 40 or 60 working holiday visa holders among 120 staff
- Cairns visa holders
- An estimated 5,500 working holiday visa holders
What people are saying
In regional Queensland, we need every hand we can get.
A lot of [working holiday visa makers] have said they’d look at New Zealand or something before even visiting here.
I wouldn’t even bother applying for my second year, maybe.
Sources
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