Surge in Working Holidaymakers Fuels Migration Growth

Working Holiday Visas and Australia’s Migration Landscape

Hey there! If you’re thinking about moving to Australia or New Zealand, you might want to know about some recent trends regarding visa sponsorship and net migration, particularly how working holiday visa holders are making a big impact.

The Impact of Working Holiday Visa Holders

Before the pandemic, working holidaymakers contributed around 25,000 people to Australia’s net migration each year. But after COVID-19, those numbers skyrocketed.

In the 2022-23 period, that figure jumped to almost 90,000, and it’s projected to remain high in 2023-24 with around 72,480 expected.

The influx can largely be attributed to a large number of these visa holders currently in the country (around 210,000). This number is likely to increase as we move towards the summer months when many new applications roll in.

Understanding Working Holiday Visas

Working holidaymakers fall under two main visa categories: the Subclass 417 (SC 417) and Subclass 462 (SC 462).

The SC 417 visa allows individuals from countries like the UK, Canada, Japan, and South Korea to work and travel in Australia, while the SC 462 visa is for those from newer agreement countries.

Both visas allow young people to experience Australia while gaining work experience.

Shifts in Government Policy

During the pandemic, contributions from working holidaymakers dwindled, leading to labour shortages. In response, the Australian government introduced changes to encourage more international workers. Here are some key adjustments:

• Increased the maximum age for SC 417 visa holders from 30 to 35.
• Allowed a third working holiday visa for those who want to stay longer.
• Broadened the types of jobs in which they can work to qualify for subsequent visas.
• Provided fast-track options for UK nationals to access a three-year visa.
• Temporarily waived fees for working holiday visas in early 2022.
• Raised visa caps for the SC 462 by 30% for the 2022-23 period.

All these changes have been largely upheld by the current Labour Government.

A new agreement has also been established that allows 1,000 places under the SC 462 for India, along with additional provisions for talented young professionals.

Trends in Visa Applications

The number of first-time working holiday and work holiday visas has surged. From 85,716 applications in 2021-22, numbers jumped to nearly 200,000 in the following year.

This upward trend is expected to continue into 2025-26, primarily because there have been no new policies to limit applications.

It’s significant to note that a majority of people applying for second and third visas are counted in net migration statistics, as they typically remain in Australia for more than 12 months out of 16.

The Future of Migration in Australia

Currently, there are no major policy shifts that would reverse the growing trend of working holidaymakers contributing to net migration.

The government had initially aimed for a long-term net migration level of around 230,000 per year, but this may soon seem unachievable given the sustained influx.

Political parties are divided on the issue. The Coalition has reiterated its goal of reducing net migration to 160,000 but faces challenges in garnering support for cutting working holidaymaker numbers.

In short, if you’re considering a move to Australia, working holiday visas offer a fantastic pathway.

Not only do they provide a chance to work and explore the country, but they also open doors for future visa opportunities, including skilled temporary and permanent visas.

What do you think?

Have a question about this topic or your own plans to move to Australia or New Zealand? Scroll down and leave a comment. We’d love to hear from you.

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