More backpackers may be able to stay in Australia for longer as the government prepares to back down on its controversial migration policy.
Labor announced in September plans to reduce net migration to 225,000 people by 2028, down from 300,000.
It said it would be done in part by imposing a ballot system for working holiday makers. Caps would be placed on second-year visa places at 45,000, down from 57,000 this year.

A third-year cap of just 5000, instead of the present 31,000, was also announced.
But changes to that plan are now expected within weeks, as Home Affairs Minister Tony Burke grapples with growing criticism from industry workers.
Agricultural workers, particularly farm owners, said the changes would decimate their harvest-time labour force, during which international travellers, who need to do hours in the regions, work for them.
Tourism experts also warned the changes risked damaging Australia’s reputation as a sought-after destination, pulling income from the national economy.
The cap on working holiday visas extended for a third year of stay would likely grow by 20,000 places from what Mr Burke outlined in September to 25,000.
“The parameters were clear – the total numbers, which I had announced in the Press Club speech, were something that I could not compromise on,” Mr Burke told AAP on Friday.
“But if we could find a better way of getting a similar immigration outcome with a better outcome for industry, then I wanted us to work to that.
“Those conversations are continuing.”
He said his office and relevant assistant ministers are speaking with industry experts.
The minister did not confirm specific figures.

The coalition and One Nation have been vocal critics of Labor’s plan to decimate backpacker numbers, despite wanting to slash migration levels themselves.
Angus Taylor’s Liberal Party would cut net migration to 100,000 people in the first year, if elected. That is just one-third of current numbers, as it races to appease the more conservative One Nation.
Pauline Hanson’s party would cut migration by a similar amount.
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