Over half a million skilled migrants are unable to work in their fields due to a slow, costly, and fragmented system for recognising overseas qualifications. Industry leaders warn that fixing this “skills mismatch” could unlock $9bn in economic benefits annually.
As Australia grapples with labour shortages in key industries, a ready-made workforce remains on the sidelines. A growing coalition of unions and employer groups is demanding urgent reforms to break down barriers preventing skilled migrants from contributing to the economy.
A System Riddled With Barriers
Almost 45% of permanent migrants in Australia are working in roles below their qualification level, according to Deloitte research. This includes over 201,000 professionals trained in management and commerce, more than 80,000 engineers, and nearly 50,000 healthcare specialists.
Yet many of these skilled workers face significant obstacles when seeking recognition of their qualifications. The process is often lengthy, expensive, and inconsistent across different professions. Denita Wawn, chief executive of the Master Builders Association, describes the system as “cumbersome, costly, slow, and in some cases completely unnecessary.”
In some cases, the financial burden is prohibitive. A 2023 review of healthcare regulations found that overseas-trained general practitioners could wait between 35 and 130 weeks and spend up to $51,000 to gain approval to practise in Australia. With no national subsidy or loan scheme in place, many skilled migrants are left unable to enter their chosen professions.
A Push for Reform Gains Momentum
Unions, business groups, and advocacy organisations have united in a campaign to address the issue. Their proposal, Activate Australia’s Skills, calls for a national body to manage qualifications recognition, financial assistance for applicants, and the establishment of information centres in migrant communities.
Public support for reform appears strong. An Essential survey of 1,132 voters found that 61% backed recognising overseas qualifications, provided safeguards were in place. A similar percentage viewed this as an effective solution to labour shortages in sectors such as healthcare and construction.
The federal government has introduced some targeted measures, including fast-tracking recognition for nurses from six comparable countries. However, broader systemic changes remain uncertain. A government spokesperson acknowledged ongoing discussions but stopped short of committing to widespread reform, stating that “there is always more to do.”
With an estimated $9bn in annual economic benefits at stake, pressure is mounting for a comprehensive overhaul of Australia’s skills recognition system. Whether political leaders will act before the upcoming election remains to be seen.
