The Business Council has long supported efforts to restore integrity to the migration system, including through cracking down on visa hopping and clearing the bridging visa backlog, which builds the public confidence needed for a migration system that works for both Australians and business.
The BCA welcomes the efforts to restore integrity to the migration system announced by the Government today.
However, we remain concerned that elements of the changes, including restrictions on working holiday makers and the effect of Ministerial Direction 119, could carry broader economic costs.
Business Council Chief Executive Bran Black noted today’s announcement is designed to support delivery of the Government’s net overseas migration forecast of 225,000 by 2027-28 but said the real test would be whether the policies get the skilled workers Australia needs into the roles that are currently unfilled.
“The starting point for migration policy should not be a number to cut to, but what our economy genuinely needs,“ Mr Black said.
“Almost one in three occupations in this country are short of workers right now. That translates to not enough workers building homes, caring for us in hospitals and aged care homes, delivering infrastructure and powering the energy transition. That is the challenge that any migration policy should be looking to solve.“
“We remain concerned that the recent Ministerial Direction 119 has made it harder for business to bring in skilled workers, and the newly announced changes, which add agriculture, fisheries and resources as priorities, will not fully resolve the issue,” Mr Black said.
“Our members tell us that the prioritisation of onshore applicants often leads to labour poaching, drives up costs and delays the critical skills that offshore workers bring, and so we continue to call for 119 to be wound back. Slower pathways affect workers across the board, wherever the shortage is.”
Mr Black said migration is one of the key levers government has at its disposal to ease pressures currently facing the Australian economy.
“The 2026 Intergenerational Report will only sharpen the case for a stable, skills-focused migration program as Australia’s population ages and productivity growth remains on track for its worst decade since modern records began,“ Mr Black said.
“We will keep pushing for a migration system that is fit for purpose, because that’s ultimately how we secure stronger economic growth and better living standards for all Australians.”