A rigid skills assessment process is keeping many skilled migrants from finding work in Australia, immigration law experts warn. The system’s focus on formal qualifications over practical experience has created a major roadblock for those hoping to secure employment.
The flaws in the process have led to strange inconsistencies. Some applicants apply under the ‘wrong’ occupation category, while others are ruled ineligible simply because of the size of the business they want to work for.
The Catch-22 of ‘Local Experience’
Jackson Taylor, managing partner at Roam Migration Law, says skilled migrants are stuck in a frustrating loop. Employers want local experience before hiring, but migrants can’t get local experience unless someone takes a chance on them.
“Too many Australian employers are unwilling to employ people from countries they consider do not have appropriate skills,” Taylor says. The problem is particularly acute for migrants from South and South East Asia and Africa.
“These people may be qualified engineers, for example, but are not considered to have the ‘local experience’ to perform the roles.”
The government has introduced skills assessments, training schemes, and recognised prior learning to address the issue. But Taylor says these measures aren’t aligned with industry needs.
“Many employers are not interested in this ‘academic’ approach and are unwilling to give people with no Australian experience an opportunity,” he explains.
Calls for Reform
Trent Wiltshire from the Grattan Institute says employer-sponsored visa requirements are outdated. The institute has long pushed for reforms to Australia’s points-tested visa system, arguing that all skilled migrants should be eligible for sponsorship, regardless of occupation.
Right now, only workers earning over $ 135,000 a year can apply for permanent employer sponsorship. Wiltshire calls this “a step in the right direction but still extremely high.” The Grattan Institute suggests lowering it to $ 90,000 to make sponsorship more accessible.
A lower salary threshold and a simpler skills assessment process could make it easier for skilled migrants to stay, filling critical gaps in industries struggling with workforce shortages. The Grattan Institute estimates these changes could boost the Australian government’s budget by $ 125 billion over the next three decades.
A Pricey, Bureaucratic Process
Industry groups say the current system is too expensive and complex, especially for small businesses. Ombudsman Bruce Bilson highlights key concerns, including:
- Long visa processing times with little transparency
- Skilled workers leaving for larger employers after smaller businesses invest in recruitment
- High sponsorship costs, including government fees and advertising requirements
For example, a small business sponsoring a skilled worker faces these costs:
- Sponsorship application: $ 420
- Visa nomination fees: $ 330–$ 540
- Skilling Australians Fund levy: $ 1,200–$ 5,000 (based on business turnover and visa length)
This doesn’t even cover advertising costs required for labour market testing. And after all this, approval is still not guaranteed—many businesses are left waiting six months or more, unable to fill crucial roles.
Promises of Reform, But No Action
The Albanese government has acknowledged the migration system’s inefficiencies and promised change. Its December 2023 migration strategy admitted the system is seen as “lacking in efficiency and fairness” and needs “greater flexibility and responsiveness.”
In September 2023, the Department of Employment and Workplace Relations (DEWR) launched a consultation on best practices for skills assessment authorities. The consultation wrapped up in October, with the government promising new guidelines “in the coming months.”
Five months later, nothing has been published.
For skilled migrants and the businesses that need them, the wait drags on. Without real reform, Australia risks losing top talent to countries with more streamlined and welcoming migration policies.
What do you think? Have you or someone you know faced challenges with Australia’s visa system?
Do you think the government is moving fast enough on reforms?
Share your thoughts in the comments below, let’s keep the conversation going!
