Federal Budget, Australia-UK Free Trade Agreement and immigration
Impact on Businesses and the Skilled Workforce
Immigration and Skilled Workforce Updates in the Federal Budget
May 2023
1. Pathway to Permanent Residency:
The budget estimates an increase in payments of $732.5 million over five years. This funding primarily focuses on creating better pathways to permanent residency for Temporary Skill Shortage (TSS) visa holders. What does this mean for your business? With more skilled temporary workers transitioning to permanent residency, businesses can expect greater stability within their workforce, reducing the costs associated with high turnover and fostering a more diverse and inclusive workplace environment.
2. Enhanced Visa Processing:
An investment of $75.8 million over the next two years aims to improve visa processing resources and efficiency. This could result in faster processing times for visa applications and renewals, reducing the uncertainty and waiting times for both employers and employees.
3. Early Childhood Education and Care Workforce:
An investment of $72.4 million over five years has been announced to help build, recruit, and retain the Early Childhood Education and Care workforce. If your business operates within this sector, this could mean greater support for recruitment efforts, resulting in a more robust and skilled workforce.
4. Support for Apprenticeships:
The budget includes $54.3 million over five years to reform apprenticeship supports, aiming at improving completion rates and the diversity of the workforce. An additional $5 million over three years from 2024-2025 will be provided to organisations with expertise in supporting women in traditionally male-dominated trade apprenticeships. These initiatives could assist businesses in these sectors by providing a more skilled and diverse pool of talent from which to recruit.
5. Immigration Enforcement and Compliance:
An allocation of $50 million over four years for immigration enforcement and compliance activities underlines the government's commitment to maintaining the integrity of the immigration system. While this should not impact businesses complying with immigration laws, it does underscore the importance of ensuring your business's immigration practices are up to date and in line with current regulations.
Australia-UK Free Trade Agreement
The Australia-UK Free Trade Agreement is a significant milestone for the Australian economy and its skilled workforce. Here are some key highlights
1. Tariff Elimination:
Once the agreement comes into effect, tariffs on over 99 percent of Australian goods and services exported to the UK will be eliminated. This will likely stimulate growth and job creation in sectors that export heavily to the UK, thereby creating more opportunities for skilled workers in these sectors.
2. Increased Market Access:
The agreement opens up significant opportunities for Australian businesses to operate in the UK market. This is likely to drive demand for Australian skilled professionals in a variety of sectors, thereby creating more job opportunities.
3. Mobility and Migration:
The agreement includes provisions that enhance the mobility of skilled professionals between the two countries within an agreed timeline. It allows eligible Australian citizens to work in the UK for up to 3 years (up from 2 years), and vice versa, removing the regional work requirements for working holiday visa holders. This offers an expanded range of opportunities for skilled Australian workers to gain international experience and brings a wider pool of international talent for Australian businesses to draw from.
4. Mutual Professional Qualifications Recognition:
The agreement includes provisions that foster the mutual recognition of professional qualifications. This means that qualifications and licenses gained by Australian professionals are more likely to be recognized in the UK, making it easier for skilled Australian individuals to work there, and vice versa, Australian businesses will be able to attract skilled professionals from the UK taking advantage of the streamlined licensing rules.
5. Digital Trade:
The agreement includes provisions for open and secure digital trade. This could lead to more opportunities in the technology sector, driving demand for skilled tech professionals in both countries.
The Australian immigration system is complex and constantly changing, if you would like to discuss how you may take advantages of these opportunities in the immigration space, please do not hesitate to reach out to our team.
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