Australian Government Seeks Free Trade Agreement Review Amid Shift in British Working Holiday Patterns

A free trade agreement implemented between the United Kingdom and Australia in mid-2023 introduced significant changes for working holiday visa holders. The arrangement included an exemption for British participants from traditional requirements to find employment in regional or remote areas if they wish to remain in the country beyond their initial year. Additionally, the age limit for applicants was increased from 30 to 35.

According to Australian government data, these modifications resulted in a substantial rise in backpacker visas issued to British nationals, growing from 47,200 in the 2023-24 period to slightly over 77,000 for 2025-26. British backpackers accounted for nearly a quarter of the 323,000 total working holiday visas issued over the past year.

Business owners and industry representatives report a noticeable shift in where these visitors choose to reside and work. Peter McLeay, owner of the Mexicairns restaurant in north-east Australia, noted a decline in British job seekers compared to staff from other nations such as France, Italy, Ireland, and Argentina. Dan McConnell, general manager of the Mad Monkey backpacker hostel chain, observed that French travellers now outnumber British clients three to one at its Cairns accommodation, whereas British visitors were previously the largest demographic.

Prime Minister Anthony Albanese stated that many British backpackers tend to base themselves in major urban centres or popular beachside suburbs such as Bondi and Coogee, rather than exploring regional areas. Unlike British nationals, working holidaymakers from various other countries must complete a minimum of 88 days of specified regional work in sectors including agriculture, fisheries, tourism, and hospitality to qualify for a second-year extension, and six months to secure a third year.

In light of these trends and the concentration of arrivals in urban hubs, the Australian government has expressed a desire to revisit the current free trade agreement provisions concerning working holiday visas.