Potential changes to WHM visa could lead to losses exceeding $200 million annually for regional businesses, sparking concern among industry leaders and local communities.
For decades, the Working Holiday Maker (WHM) visa program has been integral to the sustainability and growth of regional economies, attracting over 200,000 workers annually from more than 40 partner countries. However, discussions about altering visa requirements have raised alarms about the future of this essential program.
The Current Landscape
Under the current system, WHM visa holders can extend their stay by completing 88 days of specified work in regional areas. This requirement has been pivotal in directing necessary labour to rural sectors, particularly in agriculture and tourism.
As Rachel Chambers, CEO of Growcom, aptly states, “If we take away the working holiday visa arrangements, it’s almost like taking away a leg of a chair.”
Proposed Changes to WHM Visa and Their Implications
The federal government’s regional migration review is contemplating significant alterations to the WHM visa program.
One of the proposed changes is the removal of the remote and regional work requirement for visa extensions, a shift that has already been enacted for UK visa holders under a recent trade agreement.
The WHM program is not merely a source of labour; it also plays a crucial role in Australia’s tourism industry. WHM participants represent 27% of total visitors but account for 45% of visitor spending, with 44% of that expenditure occurring in regional areas.
Additionally, for every 10 WHM visas issued, one full-time job is created for Australians, underscoring the program’s broader economic impact.
Potential Economic Consequences
While these proposals aim to tackle ongoing issues of worker exploitation, they could severely impact regional economies and the agricultural sector.
A report commissioned by key stakeholders, including the National Farmers’ Federation (NFF), estimates that if 20,000 WHMs cease to work in regional areas, it could result in a $203 million annual loss and over 1,000 job losses.
The agricultural sector is particularly vulnerable. WHMs currently constitute 14% of all farm workers, with even higher percentages in specific industries: 44% in horticulture, 31% in grains, 26% in red meat, and 25% in cotton during peak seasons.
If WHMs are no longer available, the horticulture industry alone could face potential losses of $6.3 billion and the elimination of 127,000 jobs along the supply chain.
These figures are especially alarming amid ongoing labour shortages in regional areas.
As of June 2023, tourism job vacancies have surged by 176% since 2019, with around 17,000 openings, primarily in regional locations. Additionally, 57% of farms report difficulties in recruiting labour, with WHMs filling crucial gaps.
While alternatives like the Pacific Islander Mobility Scheme (PALM) exist, they often do not meet the needs of many small to medium growers, highlighting the unique role that WHMs play in the agricultural workforce.
This situation underscores the delicate balance between addressing worker welfare concerns and maintaining the economic viability of regional Australia. Any changes to the WHM program must consider the wide-ranging impacts on regional economies, the agricultural sector, and the tourism industry.
Beyond the Numbers Into The Cultural Impact
Jo Sheppard, CEO of the Queensland Farmers’ Federation, emphasizes the cultural contributions of these workers, noting that their diversity enriches the social fabric of rural and regional communities.
NFF President David Jochinke reinforces this perspective, stating, “These backpackers aren’t just an invaluable workforce for farmers; they also contribute to the cultural landscape and economies of our regions and return home as ambassadors for Australia.”
Industry Leaders Speak Out About WHM Visa Changes
Peak organizations representing farmers, backpackers, and tourism have released a report highlighting the economic significance of backpackers in regional areas. The report, produced by Aither for the NFF, Backpacker & Youth Tourism Advisory Panel (BYTAP), and the Australian Tourism Export Council (ATEC), underscores Australia’s attractive WHM visa program.
NFF President David Jochinke stresses the importance of maintaining the current system, stating, “It’s become a rite-of-passage for young visitors to get out into the regions and experience the full extent of what Australia offers.”
“Nothing hits quite like the sunsets from the back paddock where backpackers can contribute to helping Australia produce food and fibre for the rest of the world.”
Wendi Aylward, Chair of BYTAP, asserts: “…it is imperative the 88-day requirement remains in place. The Migration Review Discussion Paper has flagged this may be removed and this would be devastating for regional Australia.”
Aylward adds, “Encouraging international travellers to live, work and travel in regional Australia gives them a unique opportunity to experience Australia in a way few can do. This is soft diplomacy working at its best.”
Peter Shelley, Managing Director of ATEC, also expressed concerns, noting that the WHM visa facilitates a “valuable cultural exchange” and cultivates long-term advocates for Australia.
He emphasises, “As we head into the next 50 years, we want to ensure the WHM program delivers great outcomes for our working holiday makers, our employers across the country, our industry, and the Australian community.”
What This Means for Regional Businesses
The challenge lies in refining the WHM visa system to safeguard workers while preserving the vital contributions of WHMs to regional economies.
As discussions progress, regional businesses should:
- Stay informed about potential policy changes.
- Explore diversifying their labour strategies.
- Engage with local representatives to express concerns.
- Collaborate with industry bodies to propose constructive solutions.
The outcome of these discussions will significantly impact the future of many regional and rural businesses. At The Lucas Group, we remain committed to supporting our clients through these potential changes and helping them navigate the evolving landscape of regional employment.
Read the full Aither report here.