The government is reconsidering its controversial overhaul of the working holiday visa scheme.
Home Affairs Minister Tony Burke says he is also looking at ways to reduce the number of British backpackers coming to Australia.
Business leaders are urging the government to provide certainty to industries that rely on backpackers to fill jobs.
Home Affairs Minister Tony Burke has all but confirmed the government is going back to the drawing board on its proposed backpacker crackdown, as it grapples with the twin issues of a surge in UK working holiday-makers and pressure to rein in overall migration.
On Friday, Mr Burke said Australia must "find a way" to reduce the number of UK backpackers arriving and staying in the country under a free trade deal introduced in 2023, which allows British citizens to live in Australia for up to three years without specific work requirements.
"We can find a way to bring that back to something more sensible and in the national interest, without jeopardising the other parts of the free trade agreement," he said.
In August, Prime Minister Anthony Albanese ruled out imposing regional work requirements on backpackers from the UK, which apply to other working holiday-makers seeking to extend their visas beyond 12 months.
