Regional Australia at Risk of Losing Skilled Workers Under Proposed Visa Reforms: Liberals

Why would a business spend money, time, and effort to recruit workers to fill skills shortages if that worker can leave on day one and move to the city?
Regional Australia at Risk of Losing Skilled Workers Under Proposed Visa Reforms: Liberals
Australia is encouraging more doctors to work in the bush. Lisa Maree Williams/Getty Images
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Regional Australia is at risk of losing skilled workers and the housing crisis is expected to worsen as the federal government seeks to implement a major shakeup to the visa system.

The centre-right Liberal Party criticised the Albanese government’s proposed visa changes, which according to media reports, will allow holders of temporary work visas to abandon their jobs in the regional areas and move to the major cities.

“Labor’s changes will see Australians in regional communities lose access to key services while people living in capital cities will face higher rents, worse congestion, and more demand on government services, like hospitals and schools,” Shadow Minister for Immigration and Citizenship Dan Tehan said.

“When the local mechanic closes because they have no workers to fix cars, and the corner pub closes because they have no cooks to keep the kitchen open you can blame Labor. Why would a business spend money, time, and effort to recruit workers to fill skills shortages if that worker can leave on day one and move to the city?”

The AFR earlier reported that the proposed changes will make it difficult for businesses to bring in foreign workers to Australia due to a planned increase in the salary threshold.

Further, more regulations would apply to workers, including those in the care sector, who will be paid below $70,000 (US$45,000).

Liberals said that this would hinder businesses in regional areas from sponsoring workers as they would be paid less due to their location.

Pool of Workers Right Here

Meanwhile, think tank Institute of Public Affairs (IPA) said that the federal government must prioritise removing barriers to get pensioners, veterans, and students into the labour force, instead of simply relying on migration to fill in the gaps.

“With a forecast shortage of 252,000 homes over the next five years, and already failing social and economic infrastructure, Australia cannot rely on the same old lazy approach of unplanned mass migration to fix worker shortages. We need to look to solutions in our own backyard,” Saxon Davidson, Research Fellow at the Institute of Public Affairs, said.

An IPA analysis found that around 550,000 pensioners, veterans, and students would work if tax barriers and red tape were not in place.

“Removing all the tax and red tape barriers preventing Australian pensioners, veterans, and students from getting into the workforce is a simple and effective policy measure that is a win for business, the economy and most importantly for Australians who want to work.”

The federal government is scheduled to publish its Employment White Paper on Monday. The white paper will be based on full employment, wages and job security, skill shortages now and into the future, getting productivity moving again, and trying to address the barriers that exist in the labour market.

“The Employment White Paper which we will release on Monday is a really important opportunity for us to set the direction when it comes to creating more opportunities for more people in more parts of Australia,” Treasurer Jim Chalmers said.

“This is all about a more dynamic and more inclusive labour market which helps our people be the major beneficiaries of changes that we’re seeing in our economy and so that our businesses and our communities and our economy can thrive.”

Celene Ignacio
Celene Ignacio
Author
Celene Ignacio is a reporter based in Sydney, Australia. She previously worked as a reporter for S&P Global, BusinessWorld Philippines, and The Manila Times.
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