Skills recognition reforms led by treasurer will boost workforce productivity
Announced following the Council on Federal Financial Relations meeting on 28 November, the Treasurers’ reform package to streamline occupational licensing and support a more mobile national workforce marks a major step forward for Australia’s productivity, the Activate Australia’s Skills campaign says.
Violet Roumeliotis, CEO of campaign convenor Settlement Services International, said the reforms could have a transformative impact by addressing barriers that have stopped skilled migrants from contributing where they’re needed most.
The reform package, agreed to by the Federal, state and territory Treasurers, includes measures to:
- Create a Single National Market for workers by harmonising occupational licensing requirements across states for high-demand trades and professions, to be developed in partnership with employers and unions;
- Strengthen links between occupational licensing and the skills assessment process for migration, reducing delays and creating a more streamlined pathway for migrants to work in their fields; and
- Improve skills recognition processes for migrants and domestic students, including faster assessments and dedicated support to help people navigate the complex system.
“The current skills recognition system doesn’t deliver efficiency, fairness or affordability – it leaves hundreds of thousands of people locked out of the workforce in industries desperately trying to address shortages and long waiting lists,” said Ms Roumeliotis.
“Tacking unnecessary barriers to skills recognition while maintaining our existing high standards for skills will improve productivity, fill skill shortages and shorten waiting lists. It only has upsides.”
The Treasurers agreed to prioritise work on recognising skills in areas of acute demand such as construction, health and emerging industries. According to research commissioned by the Activate Australia’s Skills campaign, there are 253,000 permanent migrants in Australia with qualifications in licensed professions who are working below their skill level due to a costly and confusing skills recognition system, including 47,000 engineers, 16,000 nurses, 5,000 psychologists and 1,300 electricians who could be addressing acute skill shortages.
“We congratulate the Treasurer for progressing reforms that will deliver skills to the industry’s most in need.”
“This reform is an important first step towards removing long-standing barriers, and we look forward to working with the Government to help make this happen. But there’s still more to do.
“Hundreds of thousands of permanent migrants are still blocked from working in their licensed fields due to barriers unrelated to their skills — excessive fees, slow and inconsistent processes, arbitrary requirements, and a lack of oversight. A national skills or labour mobility commissioner to oversee the system and drive continuous improvement would make skills recognition fairer, faster and more transparent, delivering benefits for everyone.
“Getting this right isn’t just about fairness for workers, it’s about unlocking a win for Australia, building a stronger, more productive economy and making the most of the skills already here.”
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 Ombudsman 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.