Australia Proposes Ballot for Holiday Visa Extensions
The government plans to replace guaranteed visa extensions for backpackers with a new ballot system to manage temporary worker levels.
Updated on Oct. 15, 2026 in Australia and New Zealand
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The Australian Federal Government has proposed a new ballot system for backpackers seeking second or third-year working holiday visa extensions. This shift aims to give the government greater control over the number of temporary visa holders residing in the country.
Why it matters
Regional employers are concerned the ballot system will deter backpackers from travelling to rural areas where they provide essential labour. The government introduced the plan to better manage total temporary visa numbers through a competitive allocation process.
Backpackers currently require 88 days of regional work for a second-year visa and six months of regional work for a third-year visa. The proposed system replaces these guaranteed extensions with a competitive ballot for limited places.
The players
Department of Home Affairs
This is the Australian government agency responsible for coordination of national security, border control, and migration policy.
Junee Licorice and Chocolate Factory
This facility is a regional employer based in Junee that relies on backpacker labour to maintain its operations.
Neil Druce
He is the proprietor who purchased the historic flour mill in 1998 and established the current manufacturing site.
The details
The Department of Home Affairs designed this mechanism to regulate the volume of temporary workers. Regional business owners in areas like the Riverina worry the uncertainty will lead to labour shortages.
Timeline
1998 saw the purchase of the Junee flour mill by Neil Druce.
Licorice production commenced at the factory in 2001.
Chocolate production began at the facility in 2003.
Travel Outlook
The proposed ballot system represents a significant structural change to the working holidaymaker visa programme, shifting from a guaranteed model to a restricted competitive entry format.
Travellers currently planning their regional work requirements should monitor the Department of Home Affairs website for updates on visa eligibility. Potential applicants should be aware that future extensions may move to a ballot format rather than remaining guaranteed.
The takeaway
Backpackers should prepare for increased uncertainty regarding regional work extensions if the ballot system is implemented. Businesses in rural Australia may face a tightening labour market as the reliance on temporary visa holders becomes more competitive.
Further reading
For more information on regional travel and migration policy, visit the Australia and New Zealand section.
Source note: This article includes information reported by Region Riverina.
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Should federal visa policies be modified to prioritize the labor requirements of regional small businesses?
