The reciprocal agreement allows university students and young professionals to work and travel for up to a year.
Unlike similar visas, it requires the applicant to have the support of their government, hold tertiary qualifications or to be studying towards a tertiary qualification, and to speak functional English.
The arrangement is available to people aged between 18 and 30 years, with a limit of 100 visas on both sides.
Australia’s Immigration Minister Amanda Vanstone says it’ll give young people the opportunity to experience different cultures.
“As well as being an investment into future relations with Chile, the new arrangement will help develop links between people in both countries.” Senator Vanstone said in a statement.