Mr Tehan has been advocating for an overhaul of the visa system.

He hosted a forum in November to educate employers on the types of employee visas available.

Tourism and Transport Forum (TTF) Australia chief executive Margy Osmond told ABC Radio an increaase in the cut-off age "opens up to a marketplace of people who have different skills."

Mr Tehan said it was something that should be explored.

"It's something that's definitely worth looking at, specifically for regional and rural areas, where attracting people is getting harder and harder."

Mr Tehan said he was concerned about south-west employers, after the agriculture visa was abolished by the federal government.

"The agriculture visa was going to address a specific need in rural areas," Mr Tehan said.

"Given the shortsighted decision to abolish it, we do have to look at other ways we can address workforce shortages."

Mr Tehan spoke about the different visas available at his forum last year, saying there were "myriad" options, which often made the process daunting and timely for employers.

"We need a system that doesn't have the complexity that it does," Mr Tehan said.

"It can at times be very difficult to navigate."

Cost-of-living pressures have made it more difficult for backpackers to holiday in Australia.

One of Australia's most prominent hostel chains, Youth Hostels Association (YHA), shuttered a number of sites over the lockdowns.

"We've seen a reduction in capacity across the wider hostel market, in some areas over half of properties have gone," YHA Australia's chief executive Paul McGrath said to the Guardian.

"There is huge pressure to make enough money to live here," said Mr Maiolo.

"A lot of our backpacker workers are struggling to find accommodation and afford rent."

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