ACCI joins other associations calling for migration reform to solve skills shortage

The ACCI said expanding the skilled migration intake, offering temporary migrants a pathway to permanent residency and halving the levy employers pay to recruit foreign workers will be critical to delivering a sustainable increase to in-demand workers.

Last week, Treasurer Jim Chalmers said raising the migration rate wasn’t the only solution to Australia’s skill shortages.

Following the release of the 2022 Population Statement last week, Mr Chalmers said Australia was facing a future of a smaller and older population in the face of a tight labour market.

A number of business and industry associations have made submissions to the government in response to the tight labour market demand, and many have urged the government to consider a migration boost.

“By increasing the migration cap and improving pathways for overseas talent to enter the country, we can help ensure that there is a sufficient workforce to meet the needs of the industry,” said Shaun Schmitke, acting chief executive of Master Builders Australia.

Following the Jobs and Skills Summit in September, the government raised the cap of its migration program ceiling to 195,000 in 2022–23 — 35,000 higher than the previous limit.

In January, the Business Council of Australia unveiled its submission on migration and skills shortages, making 25 key recommendations that included reassessing the age limit for permanent residency visas.

“Australia should aim for a reset on migration that not only attracts migrants back to our shores and tackles workforce shortages, but also helps set the country up as a high-productivity, high-skill, and high-wage frontier economy,” the BCA said in its submission.

In its recent submission to the government’s review of Australia’s migration system, the ACCI renewed its calls for comprehensive immigration reform to boost growth, create jobs and encourage innovation.

“The upcoming overhaul of skilled migration rules must deliver greater flexibility for businesses that need access to in-demand workers,” ACCI head of trade and international affairs Chris Barnes said.

“Australia has thrived because we have attracted some of the most talented people to our shores. However, our immigration system today falls short of meeting the needs of our economy, our businesses, and our workers.

“Raising the target for permanent skilled migration intake to 200,000 places in 2023–24 and 2024–25 will be critical to address the worker shortages that cannot be filled by Australians in the short term.”

Mr Barnes noted that in the global competition for workers, it was essential that the government make Australia attractive by offering the incentives of permanent residency.

“A pathway to permanency for all temporary skilled migrants means Australia can be the destination of choice for the world’s best talent. Business isn’t the only beneficiary here. It allows migrants to come here, settle, raise families, and contribute to their local community,” he said.

The chamber has also advocated for halving the levy businesses pay to bring in a foreign worker and tying proceeds to training the local workforce.

“In an ideal world, there would be enough suitably trained Australian residents. Right now, with such a crippling skills shortage, the levy is simply a tax on workers,” Mr Barnes said.

“Business is happy to do its share in contributing to the cost of training Australians, but we need workers now. Imposing a levy of up to $7,200 on businesses will only make it harder to fill the job vacancies holding back our economy.”