Updated
22 November 2016
PDF version [331KB]
Janet
Phillips
Social Policy Section
Under Australia’s Working
Holiday Maker (WHM) program, young people (aged 18 to 30 years) from certain
countries may apply for one of two visas—Working Holiday (subclass 417) or Work
and Holiday (subclass 462). The visa available to applicants depends on their
country of citizenship, but both visas enable young people to travel in
Australia for extended periods and to support themselves during their stay with
short-term employment in any industry. The program is usually reciprocal,
allowing young Australians to travel and work under similar arrangements in
partner countries.
This quick guide provides a brief overview of the program, sourced
largely from the Department of Immigration and Border Protection’s WHM reports
(published since 2011), fact sheets and historic departmental reports. This
guide also includes the following detailed statistics
on visa grants since the 1980s, compiled from various departmental publications:
Table 1: Working Holiday
(subclass 417) visa grants, 1982–83 to 2003–04
Table 2: Working Holiday
(subclass 417) and Work and Holiday (subclass 462) visa grants,
2003–04 to 2015–16
Table 3: Working Holiday
(subclass 417), first and second visa grants
Table 4: Working Holiday
(subclass 417) visa grants by top countries of citizenship
Table 5: Work and Holiday
(subclass 462) visa grants by top countries of citizenship
Working Holiday Maker program
Working Holiday (subclass 417)
The Working Holiday (subclass
417) visa is a temporary visa for young people who want to holiday and work in
Australia for up to 12 months. Introduced in 1975, it was initially only available
for young people from the United Kingdom (UK), Ireland and Canada. Between 1980
and 2006 the program expanded to include many other partner countries, such as Japan,
South Korea, Hong Kong, Taiwan and several European nations. (A full list of partner
countries and the year they joined is provided in departmental WHM reports.)
Today, the largest
numbers of entrants under this visa subclass continue to come from the UK,
followed by young people from Taiwan, Germany, South Korea and France. Since
2006, no further Working Holiday agreements have been entered into with any
partner country—only subclass 462 Work and Holiday agreements that have more
restrictive requirements (including visa caps).
During their 12 month
stay, 417 visa holders can work as much or as little as they choose in
full-time, part-time, casual, paid or voluntary work. However, the work is
restricted to a period of six
months with any single employer. (This period was extended from only three
to six months in 2006.)
Permission to work
longer than six months with a single employer is possible in certain
circumstances, for example if the visa holder is:
- employed as an au pair (as of 21 July 2015) or
- employed in certain industries in Northern Australia, such as
aged and disability care, agriculture, construction, mining and tourism and
hospitality (as of 21 November 2015).
There are no caps on
the number of Working Holiday visas issued and the number of grants has increased
substantially (from just over 2,690 in 2005–06 to 41,339 in 2014–15) since the
option of a second
working holiday visa was introduced in November 2005. This option was initially
only available to those who had been employed in seasonal agricultural work in
regional Australia for three months.
The second Working
Holiday visa is valid for a further 12 months. The six month restriction
working with a single employer resets and applies again in the second year, although it
is possible to return to the same employer from the previous year for another
six months. In 2006 the option of a second visa became available to those
working in any
regional primary industry, such as mining. In February 2008 the option extended
to people who had worked for three months in construction industries in
regional areas.
Statistics on employer
industry are not available for first visa grants under the WHM program, but
they are available
for the second Working Holiday visa grant. Since its introduction in 2005 the
vast majority of second visas have been granted to those employed in agriculture
(about 90 per cent), with the remaining in construction or mining
work.
Work and Holiday (subclass 462)
In 2003 the Howard Government began to develop a Work and Holiday (subclass
462) visa category with additional requirements for young people from countries
that had not already entered into Working Holiday (subclass 417) partner
agreements.
Since 2006 all new partner agreements have been negotiated
under this category. Early signatories included Thailand, Chile, Turkey, the United
States of America (USA), Indonesia and Malaysia. More recent additions to the
program include China, Spain and Slovenia. (A full list of partner countries
and the year they joined is provided in departmental WHM reports.)
Other countries are currently negotiating agreements or have signed agreements
that have yet to come into effect—for example the agreement signed in 2011 with
Papua New Guinea (PNG) that is not yet operative.
Under the Work and Holiday visa there are additional requirements (listed under
the visa applicant tab). For example, applicants from outside the USA must have
functional level English, tertiary qualifications and a letter of support from
their home government (although applicants from China and Israel are exempt
from providing a letter of support). All countries (excluding the USA) have
caps on the number of visas available per year under this program (a full list
of the different visa caps are provided in departmental WHM reports).
In the past only subclass 417 visa holders have been able
to apply for a second visa by working in regional Australia. However, in June
2015 the Australian Government proposed some changes to this restriction as
part of the Government’s initiatives
to support Northern Australia. According to the department’s website,
once the necessary legislative changes take effect, all Work and Holiday
(subclass 462) visa recipients will be eligible to apply for a second visa if
they work for three months (88 days) on their first visa in tourism,
hospitality or agriculture in Northern Australia. The Government implemented
this change through an amendment to the
Migration Regulations registered on 1 November 2016, effective as of 19
November 2016.
In addition, as of 2015, both Working Holiday (subclass
417) and Work and Holiday (subclass 462) visa recipients are able to seek an extension
for up to 12 months (not just six months) working with the same employer if
they:
- work as au pairs (as of 21 July 2015) or
- work in Northern Australia (as of 21 November 2015) in aged and
disability care; agriculture, forestry and fishing; construction; mining; or tourism
and hospitality.
Current issues
Pathways to permanent residency
The working holiday scheme is a temporary
program for young people who want to holiday in Australia and the average length of stay in the past has
been about eight months. However, the program is increasingly providing a
pathway to further employment under other visa categories, such as the Temporary Work (Skilled) (subclass 457) visa,
which may in time lead to permanent residency in Australia.
Recent rises in 457 visa applications and
grants appear to be due to a significant rise in onshore applications, as many
of these applicants are international students or working holiday makers already in the country. In a 2013 fact
sheet on strengthening the integrity of the 457 program, the then Department of Immigration and Citizenship acknowledged that
many 457 visa applications came from onshore international students and working
holiday makers.
The economic contribution of the WHM
program and the ‘backpacker tax’
It is well
established that WHM entrants make a significant contribution
to the Australian economy. Any policy changes that could inadvertently reduce
the number of temporary workers available under this scheme is of concern to
many employers—as demonstrated in the response by stakeholders to this proposal
and some of the submissions
to the Senate Committee on Education and Employment’s temporary work inquiry.
In the 2015–16 Budget the Government announced
a plan to change the tax status of working holiday makers from that of
‘resident’ to ‘non-resident’ from 1 July 2016. The proposed change would mean
that working holiday makers are taxed at significantly higher rates. Since this
announcement many stakeholders—particularly those in the agriculture and
tourism sectors—have expressed concerns
that the measure will significantly reduce the number of backpackers coming to
Australia on working holiday visas and thus create labour shortages.
In March 2016 the Turnbull Government announced
a review of the proposed tax arrangements; and on 17 May 2016 announced
that, if re-elected, the Government would review the taxation of working
holiday maker visas to ‘ensure our labour supply is adequate and Australia
remains competitive globally’.
For developments and further background on this issue see
the Parliamentary Library Bills Digest, Income Tax Rates Amendment (Working Holiday Maker Reform) Bill 2016
[and related Bills].
Exploitation and compliance
The exploitation of some working holiday makers and other
temporary migrant workers—particularly those from non-English speaking
countries—has been a topic of public concern in recent years (see, for example,
concerns expressed by the Fair
Work Ombudsman). However, the intensity of public debate escalated after
the ABC screened a Four Corners documentary in May 2015 titled ‘Slaving
away: the dirty secrets behind Australia's fresh food’. The documentary
alleged that working holiday makers (predominantly from Taiwan) employed in the
agricultural sector were often underpaid, over-worked and forced to live in
substandard accommodation. Some non-English-speaking women interviewed in the
program reported being preyed on by employers or labour-hire contractors and
made allegations of sexual harassment and sexual assault.
The Senate Standing Committee on Education and Employment’s
2015 inquiry, The impact
of Australia’s temporary work visa programs on the Australian labour market and
on the temporary work visa holders, also received evidence
of exploitation of migrant workers on WHM visas and abuse of the WHM visa
program by labour hire contractors and sub-contractors. The final report—A
national disgrace: the exploitation of temporary work visa holders, released
in March 2016—noted evidence provided to the Committee of ‘pervasive
exploitation’ of WHM visa holders, particularly for workers from Taiwan, Hong
Kong and South Korea with low English language proficiency.
Statistics
Table
1: Working Holiday (subclass 417) visa
grants, 1982–83 to 2003–04
Year |
Visa grants |
Year |
Visa grants |
1982–83 |
979 |
1993–94 |
29 595 |
1983–84 |
8 096 |
1994–95 |
35 391 |
1984–85 |
10 400 |
1995–96 |
40 273 |
1985–86 |
13 622 |
1996–97 |
50 000 |
1986–87 |
22 413 |
1997–98 |
57 000 |
1987-88 |
36 428 |
1998–99 |
64 550 |
1988–89 |
45 136 |
1999–00 |
74 000 |
1989–90 |
41 538 |
2000–01 |
76 500 |
1990–01 |
39 923 |
2001–02 |
85 207 |
1991–92 |
25 873 |
2002–03 |
88 758 |
1992–93 |
25 557 |
2003–04 |
93 845 |
Sources: Immigration Department (there have been many
departmental name changes over the years), annual reports,
(various years); Joint Standing Committee on Migration, Working Holiday Makers: more than tourists, Canberra, August 1997, p. 19.
Table
2: Working Holiday (subclass 417) and Work and Holiday (subclass 462) visa
grants,
2003–04 to 2015–16
Year |
Working Holiday grants |
Work and Holiday grants |
2003–04 |
93 845 |
3 |
2004–05 |
104 353 |
257 |
2005–06 |
114 693 |
751 |
2006–07 |
134 993 |
1 812 |
2007–08 |
154 342 |
3 488 |
2008–09 |
187 907 |
6 409 |
2009–10 |
175 746 |
7 422 |
2010–11 |
185 480 |
7 442 |
2011–12 |
214 644 |
8 348 |
2012–13 |
249 231 |
9 017 |
2013–14 |
229 378 |
10 214 |
2014–15 |
214 830 |
11 982 |
2015–16 |
195 673 |
18 910 |
Sources: 2003–04 to 2004–05: Immigration Department, annual reports;
2005–06 to 2014–15: Department of Immigration and Border Protection, Working Holiday Maker program reports, (various years).
Table
3: Working Holiday (subclass 417), first and second visa grants
Year |
First visa grants |
Second visa grants |
2005–06 |
111 996 |
2 690 |
2006–07 |
127 171 |
7 822 |
2007–08 |
142 516 |
11 826 |
2008–09 |
166 132 |
21 775 |
2009–10 |
150 431 |
25 315 |
2010–11 |
162 980 |
22 500 |
2011–12 |
184 143 |
30 501 |
2012–13 |
210 369 |
38 862 |
2013–14 |
183 428 |
45 950 |
2014–15 |
173 491 |
41 339 |
2015–16 |
159 409 |
36 264 |
Notes: visa recipients do not necessarily arrive in
Australia in the same program year that the visa is issued; second visas may
not be granted to recipients in the same year as the first visa grant; the option
of a second Working Holiday visa was introduced on 1 November 2005.
Sources: 2005–06: Senate Legal and Constitutional
Affairs Legislation Committee, Answers to Questions on Notice, Immigration and
Citizenship Portfolio, Supplementary Budget Estimates 2010–11, Question 192,
19 October 2010; 2006–07 to 2014–15: Department of Immigration and
Border Protection, Working Holiday Maker visa program reports, (various years).
Table
4: Working Holiday (subclass 417) visa grants by top countries of citizenship
Year |
United Kingdom |
Taiwan |
Germany |
South Korea |
France |
Italy |
Japan |
Hong Kong |
Ireland |
Canada |
2009–10 |
36 995 |
10 175 |
20 860 |
34 863 |
18 158 |
5 481 |
8 079 |
3 722 |
14 790 |
8 209 |
2010–11 |
38 974 |
13 809 |
21 146 |
30 527 |
18 530 |
6 429 |
7 746 |
4 545 |
21 753 |
7 899 |
2011–12 |
41 712 |
22 393 |
22 499 |
32 591 |
20 086 |
9 600 |
9 162 |
7 512 |
25 827 |
7 929 |
2012–13 |
46 131 |
35 761 |
26 184 |
35 220 |
24 788 |
15 973 |
9 957 |
11 454 |
19 117 |
7 489 |
2013–14 |
45 208 |
29 366 |
26 819 |
26 893 |
25 734 |
16 045 |
10 579 |
11 667 |
11 996 |
7 174 |
2014–15 |
44 730 |
26 648 |
26 327 |
25 589 |
23 375 |
14 138 |
11 481 |
9 720 |
7 793 |
7 705 |
2015–16 |
42 175 |
22 157 |
25 980 |
22 025 |
21 527 |
11 591 |
12 304 |
6 309 |
6 743 |
7 632 |
Source: Department of Immigration and Border Protection, Working Holiday Maker visa program reports, (various years).
Table
5: Work and Holiday (subclass 462) visa grants by top countries of citizenship
Year |
USA |
China |
Chile |
Argentina |
Thailand |
Spain |
Indonesia |
2009–10 |
6 149 |
N/A |
446 |
N/A |
471 |
N/A |
100 |
2010–11 |
6 219 |
N/A |
513 |
N/A |
499 |
N/A |
98 |
2011–12 |
6 831 |
N/A |
639 |
261 |
346 |
N/A |
99 |
2012–13 |
6 878 |
N/A |
808 |
417 |
464 |
N/A |
176 |
2013–14 |
7 499 |
N/A |
1 004 |
500 |
471 |
N/A |
437 |
2014–15 |
8 347 |
N/A |
1 388 |
500 |
466 |
419 |
288 |
2015–16 |
8
669 |
5
000 |
1
500 |
700 |
500 |
504 |
776 |
Notes:
- Some of the Work and Holiday agreements
have not yet come into effect, such as the agreement signed with PNG in October
2011.
- N/A = no agreement in place in
those years.
- Caps apply for most Work and
Holiday visa grants. The respective caps for partner countries are:
- USA:
no cap (commenced 2007)
- China:
5,000 (commenced 2015)
- Chile:
1,500 (commenced 2006)
- Indonesia:
1,000 (commenced 2009)
- Argentina:
700 (commenced 2012)
- Thailand,
Greece, Israel, Spain: 500 (commencement details in the WHM reports cited below)
- Uruguay,
Poland, Portugal, Vietnam, Slovak Republic, Slovenia: 200 (commencement details
in the WHM reports)
- Bangladesh,
PNG, Malaysia, Turkey: 100 (commencement details in the WHM reports).
Source: Department
of Immigration and Border Protection, Working
Holiday Maker visa program reports, (various years).
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