Budget delivers down payment on skills recognition reform – now it’s time to unlock the full $9 billion productivity prize

Australia is a step closer to unlocking a $9 billion productivity prize, after the Treasurer announced new skills recognition measures to help qualified migrants in Australia to work in the professions they trained for, says the Activate Australia’s Skills campaign.

The campaign says the Government’s $85.2 million investment to accelerate better skills recognition for migrant trade workers is an important productivity win – but broader reform is needed to reap the full benefits.

“The Treasurer says migration has to work for all Australians. He’s right,” said Violet Roumeliotis, CEO of SSI and convenor of the Activate Australia’s Skills campaign.

“It’s encouraging to see government invest in better recognising the skills of migrants already living in Australia. These changes will deliver an immediate productivity boost.

“Every migrant whose skills and qualifications get recognised means a faster build on a new home, a shorter wait at a GP, and classrooms with the teachers they need.

“So, here’s the question – why stop at trades? Why limit a reform that works to a handful of industries when the same fix unlocks $9 billion every year across the whole economy.

“We know there are around 50,000 engineers, 20,000 teachers and 16,000 nurses in Australia right now who are sidelined by the skills and qualifications recognition system when we desperately need their skills.”

Ms Roumeliotis welcomed the Government’s commitment to consult on a Skills Recognition Commissioner – but highlighted the existing consensus on the matter across more than 130 businesses, civil society groups and unions – urging the Government to move quickly to implementation.

“This is the single biggest reform still on the table. A Skills Recognition Commissioner with the authority to hold licensing bodies accountable, identify blockages and drive reform across the system would be a game changer for productivity. It would make the whole system faster, fairer and more affordable for all professions.

“But we need the Government to move from consultation to commitment, and appoint a Skills Recognition Commissioner by the end of the year. We already know what works. Canada has done it and they’re reaping the rewards.

“Every month we spend on consulting is a month a migrant nurse drives an uber or an engineer spends their time stacking shelves. Every day we delay, more skilled migrants get lost in this maze of bureaucracy. That’s a productivity failure we just can’t afford.”

Ms Roumeliotis said the Government deserves credit for putting skills recognition firmly on the productivity agenda.

“What comes next will determine whether we can realise the massive productivity prize – from faster homes, shorter health waitlists, stronger services and the delivery of financial and wellbeing benefits to all Australians.

”The Government has made a great start, so let’s finish the job. Everyone wins if we get this right”, said Ms Roumeliotis.

The Activate Australia’s Skills campaign is calling for key skills recognition reforms:    

• Establish one national governance system for all overseas skills and qualifications recognition, including an Commissioner with regulatory power to provide independent oversight and transparency.    
• Create a more joined-up system that links skills recognition for migration purposes with licensing and accreditation for employment purposes.   
• Provide financial support for individuals to remove cost barriers and an online portal with all the information so people know what they need to do.   
• Set up Migrant Employment Pathway Hubs with skills recognition navigators to get qualified people working in their professions again.