Why does Australia want Brits to swap Sydney for the outback?

What the report says

Australia is seeking changes to its working holiday arrangements with the UK after a rule change encouraged more British backpackers to stay in major cities such as Sydney rather than heading to regional areas. BBC World News reports that the issue has become important for businesses and employers in places like Cairns, in north-east Queensland, where backpackers have long helped fill hospitality, tourism and seasonal labour gaps.

The current UK-Australia free trade deal, which took effect in 2023, gave British backpackers an advantage over other nationalities by removing the requirement to do regional work to extend their stay. The BBC says that, together with a higher age limit, this contributed to a sharp rise in British working holiday visas. However, many British travellers have chosen city-based stays, which has reduced their presence in regional towns and farms.

Prime Minister Anthony Albanese has now raised the matter with UK leader Andy Burnham, saying the deal could be adjusted if there are good policy reasons. The reported discussion comes as Australia also considers broader migration reductions and changes to the working holiday visa system, including caps on extensions. Business groups and farm operators in northern Australia say they need backpackers for seasonal work, while some British visitors say the regional requirement would be a fair expectation if it applies to other nationalities.