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Australia may renegotiate UK trade deal over backpacker visa rules

Australia may renegotiate UK trade deal over backpacker visa rules

By Salma El-Sakka

Australian Prime Minister Anthony Albanese has signaled a potential renegotiation of the post-Brexit free trade agreement with the United Kingdom, citing concerns that British backpackers are not filling labor shortages in rural areas.

Current visa exemption under scrutiny

Under the 2024 deal, British citizens on working holiday visas can stay in Australia for up to three years without mandatory regional work, unlike backpackers from other countries who must work in regional areas to qualify for extensions. Albanese said this has led Britons to take hospitality jobs in Sydney and Melbourne, worsening shortages in remote towns.

Proposed ballot system for visa extensions

In September, Australia announced changes requiring a ballot for second-year visa extensions capped at 47,000 places, with a third-year ballot limited to 5,000. The measures aim to distribute workers more evenly across the country.

Discussions with UK officials

Albanese told parliament he discussed the agreement's impact with tourism operators and publicans earlier this month and has spoken to Andy Burnham, the mayor of Greater Manchester, about renegotiating parts of the deal.

Broader immigration tightening

The move comes as Australia tightens immigration rules more broadly. Home Affairs Minister Tony Burke recently announced bans on foreign students bringing families, stricter student visa renewals, and "no further stay" conditions on visitor visas, though the changes will not apply to UK working holidaymakers under the existing bilateral agreement.

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