The Australian Government has announced significant proposed reforms to the Working Holiday Maker (WHM) program, which could substantially affect thousands of young international travellers seeking to remain in Australia for a second or third year.
On 17 September 2026, the Minister for Home Affairs, the Hon Tony Burke MP, announced plans to introduce a ballot system for second and third Working Holiday Maker visas, with proposed annual limits of 45,000 second-year visas and just 5,000 third-year visas.
These changes represent a significant departure from the existing arrangements, under which eligible applicants can generally obtain second and third Working Holiday Maker visas if they satisfy the relevant legislative requirements, including specified work requirements.
Importantly, the proposed second- and third-year ballot system has not yet commenced as of 17 October 2026. The existing application arrangements continue to apply pending implementation of the reforms.
1. What Are the Proposed Changes?
Australia currently operates two principal Working Holiday Maker visa categories:
- Subclass 417 – Working Holiday visa, available to eligible passport holders from participating countries.
- Subclass 462 – Work and Holiday visa, available to eligible passport holders from a different group of participating countries.
Both visa categories generally permit eligible young people to travel, work and holiday in Australia for up to 12 months, with opportunities to apply for second and third visas.
Under the proposed reforms, applicants seeking a second or third year would be required to participate in a ballot, even if they have satisfied the relevant specified work requirements.
The Government has announced the following proposed limits:
|
Visa category |
Previous annual numbers referenced by Government |
Proposed annual ballot places |
|
Second-year Working Holiday Maker visa |
57,000 |
45,000 |
|
Third-year Working Holiday Maker visa |
31,000 |
5,000 |
These figures indicate a proposed reduction of approximately 21% for second-year places and approximately 84% for third-year places, compared with the numbers referenced by the Minister.
The previous figures represent people who qualified in the reference period, rather than existing statutory visa caps.
The proposed changes would introduce an additional element of uncertainty. Meeting the eligibility requirements may no longer be sufficient to secure a further Working Holiday Maker visa if the applicant must also be selected through a ballot.
2. Will the 88-Day and Six-Month Work Requirements Remain?
Yes. The Government has indicated that the existing specified work requirements will be retained.
Under the current arrangements, most applicants seeking a second Working Holiday Maker visa must complete at least three months of eligible specified work, generally equivalent to 88 calendar days.
Applicants seeking a third visa must generally complete at least six months of eligible specified work, equivalent to 179 calendar days, during their second Working Holiday Maker visa.
Eligible specified work may include certain employment in agriculture, construction, tourism and hospitality, and natural disaster recovery, depending on the visa subclass, industry and location.
However, the proposed ballot system would mean that completing the required specified work may only qualify an applicant to enter the ballot rather than guarantee eligibility for a visa grant.
This is particularly important for Working Holiday Makers who have made significant financial and personal commitments to undertake specified work in regional Australia.
Special arrangements for UK passport holders
Eligible UK passport holders benefit from an exemption from specified work for second and third Subclass 417 visas. Further details appear in Section 6 below.
3. First-Year Visa Ballots: China, India, Vietnam and Indonesia
It is important to distinguish the proposed second- and third-year ballot system from the existing first-year Subclass 462 ballot arrangements.
Australia already operates a pre-application ballot for eligible first-year Subclass 462 applicants from China, India and Vietnam.
The annual first-year visa allocations are:
|
Country |
Annual allocation |
|
China |
5,000 |
|
India |
1,000 |
|
Vietnam |
1,500 |
|
Indonesia |
5,000 |
Registrations for the 2026–27 ballot for China, India and Vietnam closed on 25 June 2026.
The Department has also announced that Indonesian passport holders will be brought into a first-year Subclass 462 ballot process, with registration arrangements expected to be announced later in 2026.
Applicants selected in the existing first-year ballot generally have 28 calendar days from notification to lodge their visa applications.
These arrangements are separate from the Government’s proposed second- and third-year ballot reforms.
4. Important Update for Chinese Passport Holders: Subclass 462
Mainland Chinese passport holders generally participate in Australia’s Working Holiday Maker program through the Subclass 462 Work and Holiday visa, rather than Subclass 417. The annual allocation for first-year Subclass 462 visas for China is 5,000 places, with eligible first-time applicants required to register for a pre-application ballot.
For the 2026–27 program year, registrations for the China ballot opened on 4 June 2026 and closed on 25 June 2026. Selection takes place during the program year, and selected registrants generally have 28 calendar days after notification to lodge a visa application. Selection does not guarantee a visa grant: applicants must meet all applicable visa requirements.
Chinese passport holders already holding a first or second Subclass 462 visa are not currently required to participate in the first-year ballot again to apply for their second or third visa. Under the existing framework, a second visa generally requires three months of eligible specified work, and a third visa generally requires six months of eligible specified work, subject to the applicable requirements and evidence.
The Government’s separately announced proposal to introduce ballots for second- and third-year Working Holiday Maker visas may affect Chinese Subclass 462 holders in the future. As at 18 October 2026, the commencement date, final ballot rules and transitional arrangements have not been confirmed in this article. Applicants should not assume the proposed second- and third-year ballot already applies.
Chinese Working Holiday Makers considering a longer stay may wish to obtain advice about their eligibility for other pathways, including Subclass 482 employer sponsorship and, where eligible, Subclasses 186, 189 or 190. These visas have separate requirements and are not automatic alternatives.
5. Special Considerations for Taiwanese Passport Holders — Subclass 417
Taiwanese passport holders are eligible to participate in Australia’s Working Holiday Maker program under the Subclass 417 Working Holiday visa, provided they hold an eligible Taiwanese passport other than an official or diplomatic passport.
Applicants must generally be aged between 18 and 30 inclusive when lodging their applications. Unlike certain other participating countries, Taiwan has not been included in the July 2026 expansion of the maximum eligible age to 35.
Under the current arrangements, eligible Taiwanese applicants may obtain a second Subclass 417 visa after completing three months of specified work during their first Working Holiday visa. A third visa generally requires six months of specified work during their second Working Holiday visa.
The Australian Government’s announcement on 17 September 2026 proposing ballots for second and third Working Holiday Maker visas raises important questions for Taiwanese applicants.
Although the existing Subclass 417 program does not operate a ballot, the proposed reforms may introduce annual limits affecting Taiwanese applicants seeking their second or third year in Australia.
As at 17 October 2026, the Government has not confirmed any specific exemption for Taiwanese passport holders, nor has it published final transitional arrangements or a commencement date for the proposed ballot system.
Taiwanese Working Holiday Makers who have already completed, or are undertaking, their specified work should carefully monitor these developments and seek migration advice regarding their eligibility and the timing of future visa applications.
6. Special Update for United Kingdom and German Passport Holders: Subclass 417
United Kingdom passport holders
Eligible United Kingdom passport holders may apply for a Subclass 417 Working Holiday visa between the ages of 18 and 35 inclusive. Since 1 July 2024, eligible UK passport holders applying for second and third Subclass 417 visas are exempt from the usual three-month and six-month specified work requirements. Each visa generally permits a stay of up to 12 months, subject to the applicable criteria.
German passport holders: age eligibility expanded from 1 July 2026
From 1 July 2026, eligible German passport holders may apply for a Subclass 417 Working Holiday visa between the ages of 18 and 35 inclusive, rather than the previous upper age limit of 30. Unlike eligible UK passport holders, German applicants generally remain subject to the specified work requirements for second and third Subclass 417 visas.
Effect of the proposed second- and third-year ballots
The proposed September 2026 ballot reforms raise questions about the treatment of both nationalities. In particular, any application of a new ballot to UK passport holders must be assessed in light of the Australia–UK arrangements and the implementing legislation. The Government has not yet confirmed the final commencement and transitional provisions or any applicable nationality-specific exemptions. German passport holders should likewise not assume that satisfying specified work requirements will necessarily secure a further visa once any new ballot system takes effect.
UK and German Working Holiday Makers considering a longer stay should also assess whether they qualify for other pathways, including employer sponsorship under Subclass 482 or 186, or skilled migration under Subclass 189 or 190. Individual eligibility and application timing should be assessed before a current visa expires.
7. Other Important Working Holiday Visa Changes in 2026
In addition to the proposed ballot reforms, several changes have already taken effect during 2026.
Increased age eligibility
From 1 July 2026, eligible passport holders from Cyprus, Finland and the Republic of Korea may apply for a Subclass 417 visa between the ages of 18 and 35 inclusive. The corresponding German arrangements are discussed in Section 6.
This allows eligible applicants to lodge an application before their 36th birthday.
Increased allocation for Uruguay
From 1 July 2026, Uruguay’s annual first Subclass 462 visa allocation increased to 1,500 places.
Luxembourg Letter of Support requirement
From 3 June 2026, Luxembourg passport holders no longer need to provide a Letter of Support when applying for a Subclass 462 visa.
Processing times
The Government has also announced its intention to stabilise Working Holiday Maker visa processing times at approximately three months.
However, this is a policy objective rather than a guarantee that an individual visa application will be decided within three months.
8. What Do the Changes Mean for Regional Employers?
The proposed reforms may have significant implications for regional businesses that depend on Working Holiday Makers to address seasonal and ongoing labour shortages.
Industries potentially affected include:
- Agriculture, horticulture and food production.
- Tourism and hospitality.
- Regional accommodation and tourism services.
- Construction and eligible regional infrastructure activities.
- Businesses employing Working Holiday Makers in remote and regional communities.
For many regional employers, Working Holiday Makers provide an important source of labour during peak seasonal periods.
A substantial reduction in the number of third-year visa places may affect workforce continuity, particularly where employers have invested time and resources in training workers who wish to remain for another year.
Employers should consider whether alternative visa pathways may be available for eligible workers, including the Subclass 482 Skills in Demand visa, Subclass 494 Skilled Employer Sponsored Regional visa or relevant Labour Agreement arrangements.
However, these employer-sponsored pathways have separate occupation, salary, sponsorship, nomination and visa eligibility requirements. They are not automatic alternatives to Working Holiday Maker visas.
9. What Happens to Applicants Who Have Already Completed Their Specified Work?
One of the most important unresolved issues concerns transitional arrangements.
For example, an applicant may have already completed 88 days of eligible specified work in anticipation of applying for a second visa. Another applicant may be approaching completion of six months of specified work for a third visa.
At present, it remains unclear whether applicants who have already completed their specified work, or who hold existing first- or second-year visas, will be exempt from the proposed ballot system.
The Government has not yet published sufficient implementation details to establish:
- The commencement date of the second- and third-year ballots.
- Whether existing visa holders will receive transitional protection.
- Whether applications lodged before commencement will be processed under the existing rules.
- The ballot registration process, fees and selection periods.
- Whether nationality-specific exemptions will apply.
These matters will be particularly important when the relevant legislation and legislative instruments are introduced.
10. What Should Working Holiday Makers Do Now?
Working Holiday Makers who are considering applying for a second or third visa should review their circumstances carefully.
Applicants should continue to comply with the existing visa requirements, including completing eligible specified work where required, maintaining accurate employment records and complying with visa conditions.
Those who have already satisfied the requirements for a second or third visa should consider obtaining migration advice regarding their eligibility and application timing.
Applicants should not assume that the proposed ballot system has already commenced, nor should they assume that completing specified work will necessarily protect them from future changes.
For employers, particularly those in regional Australia, now may be an appropriate time to review longer-term workforce planning and consider whether eligible employees may qualify for employer-sponsored visa pathways.
11. Consider Alternative Visa Pathways: Plan Beyond Your Working Holiday Visa
Rather than relying solely on obtaining a second or third Working Holiday visa, particularly in light of the proposed ballot system and the uncertainty surrounding future visa allocations, we strongly encourage Working Holiday Makers to arrange a consultation with John Siong, Special Counsel at Rostron Carlyle Lawyers, to explore alternative visa pathways that may provide greater certainty and longer-term opportunities in Australia.
Depending on your qualifications, work experience, occupation, English language proficiency and personal circumstances, you may be eligible to transition to a Subclass 482 Skills in Demand visa through employer sponsorship up to 4 years, a Subclass 186 Employer Nomination Scheme visa offering permanent residency, a Subclass 189 Skilled Independent visa, or a Subclass 190 Skilled Nominated visa through State or Territory Government nomination. For those willing to live and work in regional Australia, other skilled migration pathways may also be available.
Instead of spending another year completing specified work without certainty of obtaining a further Working Holiday visa, it may be more beneficial to explore a pathway towards permanent residency. We encourage you to arrange an appointment with John to assess your eligibility and develop an appropriate migration strategy before your current visa expires.
12. Conclusion
The Government’s announcement of a ballot system for second and third Working Holiday Maker visas represents one of the most significant proposed changes to the program in recent years.
The proposed allocation of only 5,000 third-year places is particularly noteworthy, given that approximately 31,000 people were in the relevant qualifying group in the period referenced by the Minister.
Although the existing specified work requirements are expected to remain, the proposed ballot system would fundamentally change the pathway to a second or third year in Australia.
As of 17 October 2026, these reforms remain proposed and have not yet replaced the existing second- and third-year visa application arrangements.
Working Holiday Makers and regional employers should closely monitor the commencement of the new arrangements and obtain appropriate migration advice before making decisions about future visa applications or employment arrangements.
How Can Rostron Carlyle Lawyers Assist?
Rostron Carlyle Lawyers’ Migration Services team provides comprehensive legal advice and representation to individuals, families and businesses across Australia and internationally. Our expertise covers Working Holiday Maker visas, employer-sponsored visas, Labour Agreements, skilled migration, and permanent residency pathways.
Led by John Siong, Special Counsel, with over 27 years of experience in Australian migration law and cross-border legal practice, our team brings extensive international experience, cross-cultural understanding and a practical appreciation of the challenges faced by individuals and businesses navigating Australia’s complex migration system.
We recognise that migration is more than simply obtaining a visa. It involves understanding different cultures, business practices, employment arrangements and the personal circumstances of individuals from diverse backgrounds. Our cross-cultural experience enables us to provide tailored legal advice and assist clients in navigating both the legal and cultural complexities of living, working and establishing businesses in Australia. Our multilingual Migration Services team can communicate with clients in English, Thai, Romanian, Mandarin, Cantonese and Malay, allowing us to engage effectively with clients from diverse cultural and linguistic backgrounds. We believe that clear communication and cultural understanding are essential to providing effective migration advice and achieving positive outcomes for our clients.
Whether you are a Working Holiday Maker considering your future in Australia or an employer seeking to retain valuable overseas employees, we encourage you to arrange a consultation with John Siong to explore your available visa options and develop a suitable long-term migration strategy.
You may contact John Siong, Special Counsel at Rostron Carlyle Lawyers via phone or email.
Legal Practitioner Number: 5515246
Disclaimer: This article provides general information about Australian migration law and policy as at 17 October 2026. It does not constitute legal advice. Migration laws, legislative instruments and government policies may change, and individual circumstances should be assessed before lodging a visa application.
