Backpacker‑dependent towns warn new Working Holiday visa limits could cripple regional businesses

New visa restrictions spark alarm in Western Australia’s backpacker hubs

The Australian Department of Home Affairs has announced a tightening of the Working Holiday Maker (WHM) programme, reducing the number of second‑ and third‑year extensions that can be granted. While the government says the move will protect the scheme’s long‑term sustainability, businesses in regional centres such as Manjimup – a tourism and agricultural hub 290 km south of Perth – say the changes threaten their labour supply and viability.

What the government has confirmed

• Authority: Department of Home Affairs (federal immigration agency).
• Policy change: Fewer WHM visas will be allocated for second‑ and third‑year extensions; a “lottery” will be used for the limited places.
• Rationale given: To ensure the programme remains sustainable and to balance demand with the capacity to monitor participants.
• Implementation timeline: The department indicated the new allocation rules will take effect later in 2026, following an initial slowdown of applications in August 2026.
• Official guidance: Applicants are advised to consult the Home Affairs website for the latest eligibility criteria and to contact the department directly for industry‑specific labour needs.

Reported concerns from Manjimup’s business community

• Workforce composition: At Paul Fowler’s country pub, over 70 % of staff are backpackers, with the owner estimating 50‑80 backpackers cycle through the establishment each year.
• Economic reliance: Similar reliance on WHM workers is reported across hospitality, tourism, and seasonal agriculture in the town, which depends on short‑term labour for avocado, broccoli, and truffle production.
• Potential impact: Fowler warned that without backpacker workers “we won’t have a workforce here at all,” and that his planned expansion into nearby Pemberton is now at risk.
• Personal stories:
• Roberto Spadotto, an Italian farmhand turned pub manager, said the extension system allowed him to build a life in the region and plan to settle permanently.
• Valerie Castro, a chef, noted that the uncertainty over extensions is deterring friends from coming to Australia, despite the incentive of hard‑work visas for seasonal jobs.
• Gavin Booth, a truffle farmer, recounted a French backpacker leaving after learning she would have to compete in a 5,000‑place lottery for a third‑year visa.

Regional political response

• Western Australia Premier Roger Cook has asked Immigration Minister Tony Burke to reconsider the restrictions, arguing they do not reflect the labour realities of regional economies.
• The Department of Home Affairs responded that it will “work with affected industries to access the labour they need,” but gave no specifics on mitigation measures.

Practical implications for businesses and workers

• Employers may need to:
• Re‑evaluate staffing models and increase recruitment of local or permanent workers.
• Adjust seasonal planning to account for reduced WHM availability.
• Engage with the Home Affairs liaison for sector‑specific labour forecasts.
• Current WHM holders should:
• Verify their eligibility for extensions on the official portal before their current visa expires.
• Explore alternative visa pathways (e.g., skilled or employer‑sponsored visas) if extensions are not granted.
• Prospective backpackers are advised to:
• Review the updated WHM criteria on the Department of Home Affairs website.
• Consider the risk of not receiving a second‑year extension when planning long‑term stays.

How to verify the announcement

• Visit the Department of Home Affairs – Working Holiday Maker page (https://www.homeaffairs.gov.au/)
• Look for the latest media release or policy statement dated after August 2026 concerning WHM extensions.
• Check the Australian Government Gazette for any statutory instrument that formalises the new allocation limits.
• Contact the department’s Business and Industry liaison unit for clarification on sector‑specific impacts.

Outlook

The proposed reduction in WHM extensions is poised to reshape the labour dynamics of regional towns that have long depended on backpacker workers. While the federal government frames the change as a sustainability measure, local business owners and workers argue it could “cripple” economies that lack alternative labour pools. The final shape of the policy – and any accompanying support mechanisms – will likely hinge on ongoing negotiations between state leaders and the Home Affairs department.

--- *This article is based on reporting by ABC News (Nov 1 2026) and statements from affected business owners and workers in Manjimup, Western Australia. No additional quotes or data have been fabricated.*