Why are Trades Left Out of Australia’s New Priority Visa?

By Nick Hurley, 21st December 2023.

Key Takeaways

1. Selective Exclusion Raises Questions: The deliberate exclusion of skilled trades from Australia’s new priority immigration visa, despite acute shortages, raises questions about the government’s sector-specific approach.

2. Union Influence on Policy: The influence of the union movement in shaping immigration policy, particularly the requirement for trades to prove a skill shortage, highlights the delicate balance between protecting local jobs and addressing workforce gaps.

3. Contradictions in Skill Shortage Argument: The government’s argument that trades must prove a skill shortage contradicts its own analysis, which identifies trades as facing acute shortages, especially evident in the current housing crisis.

4. Immediate Impact on Housing Goals: The exclusion of highly paid tradies from the fast-track visa stream poses a potential hindrance to the government’s ambitious goal of building 1.2 million new homes by 2029, as the housing industry relies heavily on skilled trades.

5. Inconsistent Tier Placement: The disappointment expressed by industry leaders over the inconsistent tier placement of skilled trades in the core skills pathway emphasises the need for a more nuanced and comprehensive approach to address workforce shortages.

Introduction

Australia’s new migration strategy has recently garnered attention and raised questions about the exclusion of skilled trades from the specialised visa pathway. The Labor government’s decision to create a priority visa stream for migrants earning over $135,000, with a swift application process of just seven days, seems to have left behind a crucial sector of the workforce – tradespeople, machinery operators, drivers, and labourers. This exclusion, supposedly under the banner of “specialist skills,” has sparked debate, especially in the face of acute shortages in these occupations.

The Government’s Stance

The exclusion has been defended by the Home Affairs minister, Clare O’Neil, who argues that trades should prove a skill shortage before recruiting overseas. She emphasises that the purpose of the specialist skills pathway is to bring in foreign workers with skills that cannot be easily trained locally. However, this explanation raises questions about the consistency of applying such criteria across various sectors.

Are There Genuine Skill Shortages?

The government’s own analysis, as reflected in the Department of Home Affairs’ skilled occupation list, identifies trades as experiencing acute shortages. This contradicts the argument that there should be a need to prove a skill shortage in this sector. The current housing shortage crisis is directly linked to the scarcity of skilled tradespeople, suggesting an immediate need for their inclusion in the priority immigration visa stream.

Challenges in the Training System

While Minister O’Neil contends that a lack of electricians and farmers in the country reflects a failure of the training system, critics argue that this reasoning doesn’t address the urgent demand for skilled trades. The housing industry, aiming to build 1.2 million new homes by 2029, requires a substantial workforce, and excluding highly paid tradies from the specialised visa pathway could hinder the achievement of this goal.

Industry Reactions

Business groups, housing supply advocates, and the property industry have voiced concerns about the exclusion of trades from the fast-track visa stream. Denita Wawn, CEO of Master Builders, expresses disappointment over the inconsistency between the earning potential of skilled trades and their placement in the second tier of the core skills pathway. The Australian Chamber of Commerce and Industry also deems the exclusion unfortunate, emphasising the need for a comprehensive approach to fill workforce shortages.

Conclusion

The exclusion of skilled trades from Australia’s new priority immigration visa system raises valid concerns about the government’s approach to addressing workforce shortages. The housing crisis and the ambitious goal of building 1.2 million homes underscore the immediate need for skilled tradespeople. As the government navigates the delicate balance between protecting local jobs and addressing skill shortages, it is essential to reconsider the exclusion of trades from the specialised visa stream to ensure a robust and efficient workforce in crucial sectors.