On the 1st of July 2023, 16 million Brits instantly became eligible for the Australian Working Holiday Visa (WHV). The reason? The age limit for the visa was raised by five years, from 30 to 35.
This change, as well as a number of others, is a result of a UK-Australia free trade agreement that has been years in the making. It’s a huge change, as the UK is by far the biggest contributor to Australia’s Working Holiday Visa scheme: there are almost twice as many participants from Britain as there are from the second-highest contributor, France.
In this guide we’ll put the microscope on these changes: what they are, how they work, and the impact they might have on backpackers, employers, and the Australian economy at large.
Changes to the Australian Working Holiday Visa Program for UK Citizens
The news was made official 1 July 2023 – as part of the free trade agreement between Australia and the UK, a number of changes would be made to how British citizens could participate in the Australian Working Holiday Visa program.
1. An increase in age limit
The headliner was the news that the upper age limit for the Working Holiday Visa (Subclass 417) would be increased by five years for Brits, from 30 to 35 (inclusive). This opened the program up to approximately 16 million more people – a huge number given that Australia is currently only home to a little over 25 million.
This age increase brings the UK in line with a few other countries whose citizens can apply from 18-35, including:
- Canada,
- Denmark,
- France,
- Ireland,
- Italy
2. Extended visa duration
Not only can Brits apply when they’re older, but as of 1 July 2024 they will also find it easier to stay longer (up to the point that they fail to meet the eligible age requirement). 417 visa holders from the UK will be able to enjoy a maximum stay of up to three years – renewing the visa every 12 months – without having to meet the specified work criteria demanded of program participants from other countries. Speaking of which…
3. Changes to regional work requirements
Currently British 417 visa holders must complete three months of specified work in their first year in order to renew their visa for a second year, and six months of specified work in their second year to renew their visa for a third year. This ‘specified work’ is overwhelmingly regional – designed to deliver the agriculture industry the seasonal and casual help it needs.
But as of 1 July 2024, 417 visa holders from the UK will no longer need to complete specified work in order to secure their second and third year visas. Whether they stay in Australia one, two or three years will be entirely up to them, and not subject to the work they’ve done or where they’ve done it.
4. Visa application changes
The last change is not driven by the free trade agreement, nor is it exclusive to UK Working Holiday Makers. As of 1 July 2023 the cost of the 417 visa increased from AU$510 to AU$635.
In good news, processing times are as impressive as they’ve ever been. At the time of writing:
- Half of all applications were processed in less than 24 hours.
- Three quarters of all applications were processed within a week.
- 90% of applications were processed within 19 days.
Impact on the Australian Tourism Industry
How might these changes play out?
In the short-term there is the obvious effect of opening the 417 visa program up to millions more people: there will be an increase in the amount of UK backpackers arriving on our shores.
According to the ABS, the median age of a Working Holiday Maker is 27, which leans more toward the upper end of the previous 18-30 range, so the change is expected to be popular amongst 30-35 year olds.
Exactly how many more UK backpackers might arrive on Australian shores?
Based on current numbers, a figure of a few thousand is a reasonable estimate, though this estimate may be tempered by the fact that the UK currently finds itself in a cost of living crisis, making it difficult to save the necessary funds.
That said, if you can afford the visa and flights, living through an Australian summer can be cheaper than shivering through a London winter!
Another consideration is that from 1 July 2024, Brits who have previously completed a one year working holiday and returned home – will be eligible to return to Australia for a second and third year (if under 35) despite not completing their 88 days. This date in the calendar could also bring about a further boost in visitor numbers.
Impact on the Australian Job Market
The impact of these new rules on the Australian job market is somewhat difficult to gauge, not least because we’re not yet sure exactly how many 30-35 year old Brits will take part in the scheme.
While more Working Holiday Makers means more potential workers for Australian businesses to employ, the removal of the specified work requirements for all UK 417 visa holders from 1 July 2024 may dilute the benefits.
Will British Working Holiday Makers continue to do regional and agricultural work if the extension of their visa doesn’t depend on it? That remains to be seen, though given the short-term and casual nature of the work, the infrastructure that is set up to feed workers to farms, and the desire for backpackers to be around other backpackers, you can imagine that a good percentage of Brits will continue to do this specified work, even if it isn’t specified for them. The larger number of British 417 visa holders may also balance out the fact that some might trade regional work for jobs in the city.
Speaking of which, having extra backpackers who aren’t constrained by specified work requirements could go a long way to addressing the hospitality skills shortages in many Australian capitals. An increased age limit might also attract more qualified and experienced workers who are taking a career break, and who could temporarily fill higher-skilled gaps in the Australian labour market.
Impact on the wider Australian economy
Another perk of attracting an older working holiday demographic is their spending power. A 30-35 year old backpacker is less likely to choose the 20-bed dorm, the pot noodles and the wine wrapped in cardboard, because they’ve had more time to save for their trip and to build up a higher paying skill set.
As a result, the Australian economy, and the hospitality sector in particular, can expect more economic benefit from older Working Holiday Makers than from the classic gap year arrival.
In 2019 – the last year pre-COVID, from which the Working Holiday Visa program is still bouncing back – Working Holiday Makers spent an average of $8550 each, contributing a total of $2.6 billion dollars to the Australian economy. It will be interesting to see the average spending figure for 30-35 year old Brits in years to come.
Backpacker accommodation challenges and concerns
While the changes to the program are overwhelmingly positive for both UK 417 visa holders and Australia at large, opening the country up to more backpackers isn’t without its potential downsides.
The most obvious is the increased pressure that more visitors will put on an already strained housing market. A lack of housing stock has seen rents skyrocket in recent times – Sydney apartment rental prices rose a mind-boggling 24% in the last year – and if more backpackers lead to an increase in demand, those prices may only go higher.
Demand for short-term stays could also see long-term rentals being converted into Airbnb listings, reducing available rental stock and putting further pressure on the market. The only real solution to this problem is to create more housing stock, but judging by recent events in Canberra this may take some time.
Government and Industry Responses
“Now the FTA [free trade agreement], I think is a very exciting one, it is one of the best FTAs that Australia has done. Lifting the age, for example, for people to come down to Australia up to 35, and allowing them to stay for three years. And that will provide for better career opportunities than just casual work. If you can go into a workplace for three years, there are obvious benefits where people get that experience in the British economy, and then I hope go to Australia and make a greater contribution as a result of that experience.”
– Australian Prime Minister Anthony Albanese.
“This Saturday the starting gun fires on a swag of harmful changes coming to Australia’s migration system. It’s a recipe for deeper worker shortages. Every one of these measures makes it harder for people to come to Australia and contribute to our regions.”
– National Farmers’ Federation President Fiona Simson, citing, amongst other things, the removal of specified work requirements and 25% increase in visa charges.
