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Annika Rhoades

PM eyes backpacker scheme overhaul in UK leader talks

Anthony Albanese will discuss changing the rules for British backpackers with UK PM Andy Burnham. (Mick Tsikas/AAP PHOTOS)

Anthony Albanese is set to discuss changes to British backpackers coming to Australia when he meets with the UK prime minister in the Caribbean, with industry experts welcoming the move.

Under a free-trade agreement, British backpackers are exempt from regional and rural work requirements needed by other working holiday makers to secure visa extensions.

The topic is expected to be raised when the Australian prime minister meets with his UK counterpart Andy Burnham at the Commonwealth Heads of Government Meeting in the Caribbean.

Backpacker Job Board founder Matthew Heyes said he welcomed efforts to encourage UK working holiday makers into regional and rural areas.

However, Mr Heyes said the initiative was undermined by Labor's proposed changes that would see backpackers from other countries, excluding the UK, go into a ballot system for second and third-year visas.  

Backpackers
British backpackers are exempt from regional and rural work requirements. (Dan Peled/AAP PHOTOS)

Home Affairs Minister Tony Burke announced changes to be rolled out over the next year, reducing the cap on second-year visas from 57,000 to 45,000, and cutting third-year visas from 31,000 to 5000.

"If the government wants British backpackers back in the regions, it must scrap the ballot proposal for everyone and guarantee the additional visa to eligible applicants who complete the required work," Mr Heyes said.

"Under this ballot, that contribution might earn them nothing more than a lottery ticket."

A spokesperson for Mr Burke said the government was committed to reducing net overseas migration, while ensuring Australia retained the skills needed to keep facilities such as nursing homes, hospitals and building sites operating.   

"The government has been clear that our preferred visa for agriculture is the Pacific Australia Labour Mobility scheme, which has been underutilised," the spokesperson said, adding that working holiday makers would continue to make large contributions in regional areas.

The scheme allows Australian businesses to hire workers from nine Pacific island countries and East Timor to fill labour gaps in rural and regional areas.

The coalition has promised to scrap the caps on working holiday maker visas, but fees would be increased for those looking to stay longer than one year in Australia.

Exemptions would apply for those who carry out work in regional areas.

Opposition Leader Angus Taylor
Angus Taylor says the coalition's policy is for UK backpackers to work in regional areas. (Lukas Coch/AAP PHOTOS)

Opposition Leader Angus Taylor criticised the Albanese government's proposed changes, accusing him of outsourcing the problem to the UK prime minister.

"(Mr Albanese) has lost control and his answer is to have a raffle for who is going to be able to stay in the country," Mr Taylor said.

He said it was a coalition policy "centrepiece" for UK backpackers to undertake regional and rural work.    

"We do need an immigration policy that's not mass migration, but skilled migration," he said.

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