UK concerned about possible changes to backpacker visa

Favourable treatment under a 2023 fair trade deal has led to a steep increase in the number of UK backpackers in Australia.

Labor is understood to be considering imposing regional work requirements on British backpackers to make the scheme less attractive in a bid to bring down migration numbers.

No date has been set for the government to unveil its changes in migration policy after Tony Burke postponed a National Press Club address earlier this month.

Australia could face a diplomatic stoush with the United Kingdom if it pushes ahead with a potential plan to force British backpackers to work in regional areas under a looming overhaul over Australia's migration system.

British citizens on Working Holiday Maker, or backpacker, visas are allowed to live in Australia for up to three years without any specific work requirements under a free trade deal which came into force in 2023.

Working holiday makers from all other countries must work in regional or remote areas to have their visas extended beyond a year.

The favourable treatment has led to a steep increase in the number of UK backpackers coming to Australia, up from 47,238 in 2023/24 to 79,412 in 2024/25 according to Home Affairs data.

Under pressure to clamp down on temporary visas and reduce overseas arrivals, Labor is understood to be considering imposing regional work requirements on British backpackers to make the scheme less attractive.

Despite warnings that the change could constitute a breach of the free trade agreement (FTA) it has not been ruled out internally, according to two sources within government.

Aware of the discussions taking place, UK Home Secretary Shabana Mahmood was expected to raise the issue with Home Affairs Minister Tony Burke on the sidelines of a Five Eyes meeting in Sydney today.

Following that meeting Mr Burke did not deny the issue had been canvassed.

"We talk regularly about all migration issues, about the issues we are managing in each of our countries," Mr Burke told reporters in Sydney.

The possible change to UK arrangements is one of several under consideration as part of a wider crackdown on immigration which Mr Burke was due to announce three weeks ago before being forced to postpone .

No new date has been set for the policy announcement, which is designed to ensure Labor meets its own target of cutting net overseas migration (NOM) from the current 300,000 to 225,000 by 2028.