Government to slash working holiday visa allocations

The Federal Government has announced a plan to cut net overseas migration, including new limits on working holiday visa extensions.

Government to slash working holiday visa allocations

On Thursday, the Federal Government shared its immigration policy plan, which includes cutting net overseas migration by 75,000 people by 2028.

A key change is to working holiday visas, where a ballot system will be set up for people looking to extend their visas into a second and third year.

It comes after One Nation shared its plan for “net-negative” migration on Monday.

The agriculture sector has criticised both proposals.

So, what does the Government’s plan look like?

Background

The net overseas migration rate is the number of people who arrive and stay for at least 12 months, minus the number who leave and stay away for at least 12 months.

The latest ABS data was released on Thursday morning.

It shows net overseas migration to March 2026 was around 292,000 people, down 5.6% from the previous year.

Announcement

On Thursday, Home Affairs Minister Tony Burke announced the Government’s plan to cut net overseas migration to 245,000 per year in 2026-27 and 225,000 by 2028.

One visa type that will see a significant cut is the working holiday visa, with a new ballot system introduced for people applying to extend it to a second and third year.

Burke said the allocation for second-year visas will be cut from around 57,000 last year to 45,000, while third-year places will be reduced from around 31,000 visas to 5,000.

Burke announced a requirement where temporary student visa graduates can only be granted a new student visa for a more advanced level of education.

This means that someone who has, for example, completed a bachelor’s degree cannot then study a graduate diploma, but would need to undertake masters to receive a new student visa.

Burke said this is to prevent “visa-hopping”.

Another policy means family members of temporary student visa-holders will no longer be granted visas to also move to Australia.

Burke said this will not affect families who are already in the country, PhD candidates, or those from Pacific nations.

“If you want to come on a temporary basis to Australia, apply for a temporary visa. If you want to come to Australia permanently, apply for a permanent visa. And if you no longer have a valid visa, you should leave Australia.”

Home Affairs Minister Tony Burke in his speech at the National Press Club.

Housing

In his speech, Burke said: “The housing shortage we have is not caused by immigration”.

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He referenced data showing the average Australian household size has decreased from 2.9 in the 1980s to 2.5 now.

Burke said for each 0.1 change, an additional 450,000 houses are needed.

“Immigration will need to be part of the solution,” he added, saying that migrant labour can address skills shortages in the housing industry.

Burke also noted that the number of temporary skilled worker visas granted to construction workers has tripled.

One Nation

On Thursday morning, One Nation MP Barnaby Joyce told the Today show the plan was “an exact replication, but not to the extent of what One Nation is doing.”

One Nation shared its plan on Monday, with leader Pauline Hanson saying the party would seek “net-negative” overseas migration levels.

This means more people are leaving the country than arriving.

One Nation would aim to remove 750,000 people on temporary visas over three years, including a cut to international student numbers.

Opposition

On Thursday morning, Shadow Home Affairs Minister Jonno Duniam addressed Burke’s policy, telling 4BC Brisbane the Government “could have done so much more”.

“They’re not actually bringing numbers down, they’re just getting them back to where they should have been five years ago,” Duniam said.

The Coalition’s immigration policy is expected in coming weeks.

Ag industry

In a statement, National Farmers’ Federation (NFF) President Hamish McIntyre called the Government’s policy a “low blow for farmers and the businesses that produce Australia’s food and fibre.”

McIntyre welcomed agriculture being named a priority sector, but urged the Government to rethink a recent three-month processing timeframe for working holiday visas, which usually took days to approve.

He said the ballot could be a “step in the right direction if it protects regional work” but will “mean little if the system cannot process people in time.”

Uni sector

Universities Australia CEO Luke Sheehy warned that “cutting migration too hard comes with consequences for our economy, our universities, our workforce and the services Australians rely on.”

Sheehy welcomed exemptions for PhD candidates, along with the Minister’s “acknowledgement that migration didn’t create Australia’s housing crisis.”

“International students have been blamed too often for problems they didn’t create,” he ended.

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