Workers and bosses backing Labor’s migration reforms package

Unions and business groups have thrown their support behind a package of reforms aimed at revitalising and streamlining the migration system.

ACTU president Michele O'Neil. Picture: NCA NewsWire / Gary Ramage

Unions and business groups have thrown their support behind a package of reforms aimed at revitalising and streamlining the migration system, after a sweeping review found the current settings were not “fit for purpose”.

ACTU president Michele O’Neil welcomed the increase from July 1 in the temporary skilled migration income threshold from $53,900 to $70,000 but she said there was “more work to do here” to reach a wage threshold that would “make sure we’re not using migrant workers to undercut pay and conditions and industry standards for workers that are here in Australia”.

“We welcome the fact it’s finally moving (but) we were actually calling for it to rise to $90,000,” Ms O’Neil told Sky News. “We want to see it indexed and continue to go up and keep pace with wages in our country.”

She said the planned overhaul of the “ridiculous” skilled occupations list was long overdue, saying the introduction of an independent and data-driven assessment of workforce shortages through Jobs and Skills Australia would bring integrity to the process.

“Having a system where employers and unions and government can work together on this is a big improvement,” she said.

Home Affairs Minister Clare O’Neil on Thursday criticised a migration system that had delivered a doubling in temporary workers in the past 15 years, and left foreign employees exposed to exploitation. She announced that by the end of the year, all temporary skilled workers would have a pathway to permanent residency.

The ACTU’s Ms O’Neil said the change would build on Australia’s “proud tradition” of permanent migration. “We’ve seen this shift to, in many cases, short-term, bonded labour, where people are tied to one employer and can’t leave if anything goes wrong. That’s not good for the country (or) those workers,” she said.

The government’s migration review was also well received by business groups, although there remained some concerns the higher wage threshold could limit the capacity of some employers to fill gaps in lower paid positions.

ACCI chief executive Andrew McKellar said “we note the announced increase to the temporary skilled migration income threshold and will closely monitor its implementation to ensure regional and rural businesses, in particular, do not face added disadvantage”.

He said “business applauds proposed measures to reduce complexity in the system and ensure visa processing times are further expedited”.

Ai Group chief executive Innes Willox said the national employer organisation “strongly supported” the government’s draft outline to fix the “broken” migration system.