Business SA says federal Labor’s proposed changes to skilled migration will hurt local employers

The state’s peak business group has slammed Labor’s proposed changes to skilled migration visas, claiming they will make it increasingly difficult for small and regional businesses to fill skills shortages across the state.

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The state’s peak business group has criticised Labor’s proposed changes to skilled migration visas, claiming they will make it more difficult for small and regional businesses to fill skills shortages.

Business SA says while the proposed increase to the minimum wage for skilled migrants, from $53,900 to $65,000, may appear reasonable on the east coast, it is “out of touch” with the needs of SA employers.

It says the agriculture and hospitality sectors will be hit particularly hard, including employers in the Riverland, Eyre Peninsula and Spencer Gulf, who rely on migrant workers.

Business SA executive director of industry and government engagement Anthony Penney said accessing skilled migration was already time-consuming and expensive, and an increase in costs would put further pressure on small businesses and regional areas.

Opposition Leader Bill Shorten and Business SA's Anthony Penney.

“SA’s small business owners, particularly those in regional areas already struggling to find enough skilled workers, shouldn’t be forced to pay east coast wages to fill their employment gaps,” he said.

“Those employers struggle to have a high enough turnover to pay staff in some cases, turning to skilled migration as a last resort.

Opposition Leader Bill Shorten this week unveiled a suite of new measures under a “457-style visa crackdown on exploitation of overseas workers to combat the undermining of local wages and conditions”.

A Labor spokesman defended the proposal to increase the Temporary Skilled Migration Income Threshold (TSMIT), claiming around four out of five temporary skilled worker visas were currently approved for occupations where there was no shortage of skilled workers.

“Labor will restrict these visas to jobs where there is a genuine skills shortage in a particular area,” he said.

“Labor believes there is no excuse for a skills shortage to last one day longer than it takes to train an Australian to do that job — especially if a particular industry is booming — and we’ll train local workers with our plans to invest in TAFE and higher education.”

As well as lifting the TSMIT, Labor plans to increase the levy paid by businesses that sponsor workers on temporary skills shortage visas.

Businesses with annual turnover of $10 million or less would pay $1950 a year for a four-year visa, compared to $1200 under the current laws.