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Industry groups warn of impact from WHM visa reforms

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2026-09-22 03:12 UTC → 2026-10-02 16:54 UTC · added ~~removed~~

The Australian agricultural and tourism sectors are facing significant labor and economic uncertainty due to issues surrounding the Working Holiday Maker (WHM) visa program. While industry groups have previously highlighted labor shortages and the impact of visa processing delays on the horticulture supply chain, new migration reforms have intensified these concerns. Home Affairs Minister Tony Burke has announced reforms that introduce a ballot system and implement strict caps on visa extensions. Second-year visas will be capped at 45,000, while third-year visas are expected to drop by more than 80% to a cap of 5,000. Four major industry peak bodies—including the Tourism & Transport Forum, the National Farmers’ Federation, Accommodation Australia, and the Australian Chamber of Commerce and Industry—warn that this new lottery system will result in 38,000 fewer workers and strip approximately $1.86 billion in direct wages from the economy. The Australian Tourism Industry Council further noted that cuts to regional backpackers could cost 3,800 tourism jobs and $560 million in annual visitor spending. Critics argue the lottery undermines incentives for backpackers to complete regional work, as labor requirements no longer guarantee a subsequent visa. These delays are now impacting grain harvests. In the Wimmera region, grain grower Craig Henderson reported having less than half of his required crew, which typically includes seasonal workers from Canada. Farmers warn that the timing is critical, as grain quality and value decrease the longer crops remain in the fields. The shortage is exacerbated by low local unemployment rates, making domestic replacements difficult to find. Although Minister Burke announced that processing would resume and agricultural visas would be elevated, a significant backlog remains. Further complicating the situation, the Department of Home Affairs has reported significant increases in processing times for WHM visas.

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