Does the new budget address skills shortages and is there any relief on the horizon for small business owners?
As you are likely aware, the Federal Treasurer, Dr Jim Chalmers, handed down the Labour government’s first Federal Budget on 25 October 2022. The budget provides for a focus on staff shortages however its questionable as to how the measures will address the critical skilled shortages facing Western Australian business owners.
Plans for a strengthened workforce to assist farming and agriculture
The Labour government strategy centres around a plan to responsibly use migration to ease current critical skill and labour shortages. A number of new measures were announced regarding Australia’s Skilled Migration Program, as well as a reiteration of commitments made at the Jobs and Skills Summit, to build a migration system that strengthens the workforce and builds community – great news for regional businesses.
Reiteration of commitments made at the Jobs and Skills Summit
There are four key elements relating to workplace and migration implications from the Labour government in the October budget.
There are four key elements relating to workplace and migration implications as follows:
- The Pacific Australia Labour Mobility (PALM) scheme will be expanded and enhanced
The Pacific Australia Labour Mobility (PALM) scheme will deliver on the Australian Government’s commitment to allow family members of the PALM scheme to join them in Australia.
The PALM Scheme allows eligible Australian businesses to hire workers from 9 Pacific islands and Timor-Leste when there aren’t enough local workers available.
There will be specific eligibility criteria such as the PALM Scheme workers must be on a long-term placement between 1 to 4 years.
As part of this measure, which will start on 1 July 2023 and will be ongoing. eligible workers and their families will be able to access some social security payments and services such as:
· Family Tax Benefit (FTB)
· Supplementary payments for FTB Part A
· Child Care Subsidy
Services Australia has been allocated $6.6 million in 2022-23 and $9.5 million over 4 years to support this measure.
2. Pacific Engagement Visa
This refers to the creation of a new permanent Pacific Engagement Visa for nationals of Pacific island countries and Timor-Leste.
Up to 3,000 places per year will be made available to eligible Pacific nationals in addition to the existing permanent Migration Program, to commence from July 2023.
3. Reduction of visa processing times
It is well known the visa processing system has been gridlocked at times and can be slow even at the best of times.
Employers can look forward to faster processing of applications – particularly the subclass 400 Temporary Work Activity visa and the subclass 482 Temporary Skills Shortage (TSS) visa – with the government reiterating its existing commitment for additional funding to boost visa processing capacity.
There is also a planned shift in approach, from a largely law-enforcement culture to a nation-building and client-service culture.
4. Increased permanent migration
The government reiterated the increase of its permanent migration planning levels from 160,000 to 195,000.
The permanent Migration Program will be expanded to 195,000 in 2022–23. This is an increase of 35,000. More than 90 per cent of new places will be for skilled migrants, and more than a quarter targeted to regional areas.
To address skills shortages more quickly, additional funding of $42.2 million will be provided to accelerate visa processing, reduce the visa backlog and raise awareness of opportunities for high‑skilled migrants in Australia’s permanent Migration Program.
The end of skills shortages?
Will the announcements in the October budget be enough to boost Australia’s economy, attract high-skilled migrants, and alleviate skill shortages? Only time will tell. In the meantime there is a slow trickle of backpackers returning on Working Holiday Maker (WHM) visas. As WHM’s often stem from farming backgrounds in countries with systems and processes similar to Australia’s, this should provide some labour relief for the sector.
With the news that further and more significant changes to the Skilled Migration Program are expected as a result of the Employment White Paper following the Jobs and Skills Summit, we can look positively, albeit cautiously, to the future. It does appear that relief is in sight, but not in time for harvest this year.
ProcessWorx has a wealth of experience working with farmers to provide an extensive range of Human Resource services tailored toward assisting small businesses with HR compliance. Call our friendly team (08) 9316 9896 or visit www.processworx.com.au
Follow ProcessWorx on LinkedIn, Facebook, Instagram, YouTube, and Twitter to keep up with the latest HR and Safety news.
Written by Danielle McNamee
