An $875 million budget cut at the Home Affairs Department is set to further blow out already stretched visa waiting times and heap more pressure on businesses waiting on the arrival of workers and tourists.

The federal mega agency is already grappling with high numbers of applications, low staff morale and record volumes of people stuck on bridging visas. But the cut, recorded in the fine detail of the budget, amounts to a third of the department’s migration operation, leading to fear that delays will drag on well into next year.