Australian industry bodies warn of impact from new WHM visa lottery

Four major Australian industry peak bodies have warned that a new ballot system for second- and third-year Working Holiday Maker (WHM) visas will severely impact the tourism, hospitality, and farming sectors. The policy, announced by Immigration Minister Tony Burke, introduces a lottery for backpackers seeking subsequent visas, with caps set at 45,000 for second-year visas and 5,000 for third-year visas.

Industry groups, including the Tourism & Transport Forum, the National Farmers’ Federation, Accommodation Australia, and the Australian Chamber of Commerce and Industry, estimate the changes will result in 38,000 fewer workers. This reduction is projected to strip approximately $1.86 billion in direct wages from the economy.

The Australian Tourism Industry Council further warned that the cuts to regional backpackers could cost 3,800 tourism jobs and $560 million in annual visitor spending. Critics argue the lottery system undermines the incentive for backpackers to complete regional work, as completing the required days of labor no longer guarantees a pathway to a subsequent visa.