Australia announces caps on backpacker visa extensions

Australian Home Affairs Minister Tony Burke has announced significant caps on second- and third-year backpacker visa extensions granted in exchange for regional work. The new limits will allocate 45,000 spots for second-year extensions and 5,000 spots for third-year extensions, to be distributed via a lottery system.

These measures represent a substantial reduction in available visas for non-UK nationals. The third-year category faces an approximately 84 per cent cut compared to the 31,500 visas projected for 2025–26. The second-year cap of 45,000 is a 44 per cent decrease relative to the same period.

Historically, these visa extensions have functioned as a de facto agricultural work visa, addressing workforce shortages in regional areas. While UK nationals are exempt from these work requirements under the Australia-UK free trade agreement, the new restrictions will impact other backpackers who have used regional work to extend their stay.