Federal government backpacker cuts cause concern for agricultural industry

By Simon McGuire
Tasmanian Country
19 Sep 2026
Fruit picking
Fruit picking

The Tasmanian government and farming groups are concerned about the Commonwealth’s planned limits on how many backpackers can enter Australia.

Home Affairs Minister Tony Burke announced that a ballot system would be introduced for backpackers wanting to stay in Australia for more than a year.

A cap of 45,000 will be applied to those looking to stay a second year, with those seeking a third year capped at 5000.

Mr Burke said the government would prioritise migrants wanting to work in construction, healthcare, agriculture, fisheries and teaching.

Tasmanian Skills and Jobs Minister Felix Ellis said regional Tasmanian businesses and communities could not afford to lose hundreds of workers ahead of peak summer.

“Our farmers, tourism operators and hospitality businesses rely on working holiday makers to fill critical seasonal roles,” Mr Ellis said.

“They’re the ones picking our fruit, pouring drinks and showcasing our iconic attractions.

"At a time when employers are already struggling to find workers, the Federal Labor Government is making it harder to attract the people regional Tasmania relies on.”

Mr Ellis also said that backpackers added value to Tasmania’s tourism sector.

"Backpackers are also visitors.

“If we lose these workers, we also lose the money they spend travelling around our State, supporting local businesses and regional communities.

"We urge the Federal Labor Government to reverse these changes before they place further pressure on regional Tasmania."

National Farmers’ Federation (NFF) President Hamish McIntyre said farmers were furious that Mr Burke’s migration announcement confirmed a three-month processing timeframe for Working Holiday Makers when approvals had previously taken only days.

“This is a low blow for farmers and the businesses that produce Australia’s food and fibre,” Mr McIntyre said.

“The Government’s unilateral slowdown on Working Holiday Maker visas has already caused havoc across agriculture ahead of the busiest time of year for food and fibre production.

“This announcement does not fix the crisis the Government created.”

Mr McIntyre said a three-month processing target left farmers stranded.

“Working Holiday Makers fill about one in seven farm jobs, making them central to getting food and fibre produced, harvested, packed and into supermarkets.

“The Government’s move to introduce a ballot for second- and third-year Working Holiday Makers may be a step in the right direction if it protects regional work and keeps workers flowing to the farms and towns that need them.

“However, a ballot will mean little if the system cannot process people in time.”

The NFF welcomed agriculture being named a priority sector, but Mr McIntyre said Government should have considered agriculture, fishing and aquaculture on the same level as defence and teaching.

“Burying food production in a long list of priorities does not reflect the urgency or scale of the workforce challenge now facing farms, fisheries and regional supply chains.

“Farmers need approvals in days, not months. For many farms, three months is the difference between harvesting a crop and losing it.

“The Government has been asleep at the wheel on this issue and now risks careering off the road at the worst possible time for Australian agriculture.”

AUSVEG Chief Executive Michael Coote said it was concerned about the government’s changes to the Working Holiday Visa program.

“AUSVEG implores all sides of politics to find workable solutions for industry so that vegetable growers do not become collateral damage in the populist rush to cut migration to the country,” Mr Coote said.

“It must also be recognised that Australian vegetable growers have been dealing with chronic workforce shortages over many years, and that our $6 billion vegetable industry is still battling the severe impacts of the Middle East conflict and years of challenging operating conditions.

“It is now also facing a potentially ever-shrinking workforce crisis, and the impact will be felt by families, regional communities and on national food security.”

Only two per cent of fresh vegetables consumed in Australia are imported, with growers supplying around 10,000 tonnes of fresh produce into the domestic market each day for Australian consumers.

“In short, a viable, productive vegetable industry is critical to all Australians’ previously assumed right to an abundant supply of Australian-grown vegetables,” Mr Coote said.

“The wide array of crops, production systems and major variations in the size and scale of commercial vegetable producers across the country, means the vegetable industry needs flexible and diverse workforce options.

“This policy adjustment could be the final straw for many growers already grappling with farm viability and has the potential to impact the supply of Australian-grown vegetables available to Australians, causing scarcity and food prices to increase.

“In a cost-of-living crisis like the one we are in the grip of now, this has the potential to prove more unpopular than the problem they are trying to fix.”

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