Reforming Australia’s costly and outdated overseas skills recognition system should be a top priority if the nation is serious about boosting productivity, according to participants at this week’s Economic Reform Roundtable.
Former Treasury Secretary Dr Martin Parkinson AC PSM called reform “a political and economic no-brainer,” arguing it would provide “an almost immediate boost to Australia’s economy” and maximise the benefits of migration.
Currently, more than 620,000 permanent migrants are working below their skill level, despite widespread workforce shortages that are dragging down productivity and stalling economic growth.
Independent MP Allegra Spender said wasted talent was costing the nation:
“Fixing Australia’s skills recognition regime is not just about fairness. It is an essential part of boosting economic productivity and growth.”
Participants argued that the existing system—plagued by excessive fees, slow and confusing processes, and a lack of accountability—locks qualified individuals out of jobs for which they are trained.
The Activate Australia’s Skills campaign has proposed four key reforms to break down barriers and better match migrants’ skills with labour market needs:
• A single national governance system, with an Ombudsman to provide transparency and oversight.
• A joined-up approach linking migration-related skills recognition with licensing and accreditation for employment.
• Financial support for applicants and an online portal to streamline the process.
• Migrant Employment Pathway Hubs, with navigators to guide qualified people back into their professions.
Australian Council of Social Service CEO Cass Goldie stressed that reform had consensus:
“This is a big productivity solution backed by industry, unions, economists and the community sector. It’s a win-win for us all.”
More than 100 organisations, including businesses, unions and community groups, have thrown their support behind the proposals, describing them as a shovel-ready solution to deliver immediate productivity gains.
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