Source : BUSINESS NEWS
WA businesses warn that the federal government’s migration system changes will severely impact significant parts of the economy despite improved access to skilled workers.
The federal government has announced it will prioritise the processing of skilled migrant visas for key sectors including construction, resources, agriculture, defence, fishing and healthcare, but will tighten visa rules for backpackers, international students and visitors to reduce net overseas migration to 225,000 in 2027-28.
The changes are particularly significant for WA, which official figures show has a high annual migrant intake.
According to the Australian Bureau of Statistics, WA’s population grew faster than any other state or territory in the 12 months to March, expanding by 2.1 per cent, well above the national average of 1.4 per cent, driven largely by migration.
Underlining the significance of migration for WA, the ABS figures show the state’s net migration intake over the period reached 41,531, only a little less than 55,217 in Queensland and well in excess of the natural increase of 12,353.
“WA is different to other states, and our economy is facing a significant skills crunch,” Chamber of Commerce and Industry WA chief executive Will Golsby said.
While welcoming moves to improve access to skilled migrants, Mr Golsby said the changes detailed by the government would hurt hit important sectors.
In particular, the business leader said targeting international students was a mistake.
He said international education made a major contribution to WA’s economy, creating one full-time job for every five students.
“If those students are told they need to leave behind spouses and dependents for a three- or four-year degree, many will simply choose to study elsewhere,” Mr Golsby said, adding that tighter rules for backpackers would also hurt.
Tourism Council WA said a 43 per cent cut to regional long-stay Working Holiday Makers visas announced by the government would be devastating to regional WA.
Council chief executive Evan Hall said the change would result in the loss of 4500 backpacker workers, affecting not only the farmers and other business reliant on them for vital seasonal work but the tourist services they use.
Mr Hall said steep cut in the number of backpacker visas would rip $62 million out of regional tourism expenditure, putting 425 local tourism jobs at risk.
“Western Australians do not see backpackers as migrants. They see them as the tourists and seasonal workers who keep regional WA running,” Mr Hall said.
“The cuts will be most severe for Exmouth, Broome, Kununurra and northern WA, which currently attract backpackers to work in tourism to earn a third visa.”
Mr Hall said around 68 per cent of Working Holiday Makers arrived via Sydney or Melbourne and took more than a year to reach WA, meaning a shorter cap would push many backpackers out of the country before they ever set foot in WA.
“Removing the second and third visas strips away the incentive backpackers have to keep working in regional WA, filling the seasonal gaps the local workforce simply can’t cover,” Mr Hall said.
“Towns like Broome, Exmouth and the Kimberley region will be gutted during peak seasons.”
But Housing Industry Association chief economist Tim Reardon said the changes announced by Immigration Minister Tony Burke provided a balanced, long-term direction for the nation’s migration system.
“Of particular importance to the residential building industry is the recognition that skilled tradespeople are essential to increasing Australia’s housing supply,” Mr Reardon said.
“These policies can work to mitigate the boom to bust cycles that the building industry has endured over recent years.”
Australian Industry Group chief executive Innes Willox said added clarity around the migration was welcome.
“But we can’t afford migration to become a political race to the bottom,” Mr Willox said.
“The change around student visas and families fixes a loophole that needed to close, [but] the changes to working holiday makers will create significant stress in regional areas as they meet seasonal employment demands.”
Opposition agriculture spokesperson Lachlan Hunter said the government need to provide farmers with a timeline regarding the change to speed up visa processing.
“Tony Burke says the go slow is over. Fine. Now tell farmers when their workers are coming,” Mr Hunter said.
