Immigration Minister Tony Burke confirmed on Sunday that working holiday visas were still being processed, but they were being handled "more slowly than they were previously".
He did not provide further information about the reason for the slowdown but pointed to a Pacific workers' scheme as the primary visa for temporary staff when asked about the impact of fewer backpackers on farm labour.
"One of the things that happened when we started to improve worker protections on (the Pacific scheme) was ... some of the worst operators said, "if we've got to have better standards for (those) workers, we'll just switch to backpackers".
"That's not the way this system's meant to work."
Data from the Department of Home Affairs shows the number of working visa holders in Australia exceeded 210,000 in June 2025, outpacing pre-COVID figures by around 100,000.
Nationals leader Matt Canavan said the working holiday visa bringing people to the regions was not to blame for the broader impacts of high migration.
"It's not backpackers taking away houses from people in Sydney and Melbourne or Brisbane," he told reporters.
Instead, the junior coalition partner agreed to cap international student levels at 25 per cent of the current intake at its national conference on Saturday.
One Nation leader Pauline Hanson also called for a cut to the nation's student intake, which she said offered a "back door" into Australia.
The government is yet to announce how it will meet an annual net overseas migration forecast of 225,000 a year in the May budget.
The immigration minister was due to front the National Press Club earlier in August to outline changes to reduce migration levels, but he pulled out at the last minutes over policy concerns that erupted during a Labor caucus meeting.
Mr Burke defended the delay and said the party was examining all the consequences of its yet-to-be-announced plan.
"If you want an example of what happens when you don't do your policy work collegiately, I give you Senator Andrew Bragg as exhibit A," he said.
Opposition housing spokesman Andrew Bragg raised eyebrows during the week when he suggested net overseas migration should be reduced to 180,000 per year.
He suggested the figure could be reached with "modest reductions" to international students, working holiday arrivals and post-study work visas.
The coalition is yet to reveal an annual migration target or policy for reducing the number, instead saying the intake should be tied to housing completions.
Labor has quietly made several changes to the migration system in recent weeks as polls point to widespread support for reduced immigration levels.
In a ministerial direction in late July, Mr Burke instructed his department to prioritise visa applications from migrants already in Australia ahead of people applying from overseas.
The move is expected to have the effect of lowering the closely-watched net overseas migration figure, which stood at about 300,000 in 2025, while making it harder for employers to access skilled labour from overseas.
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