Hopes of finding a way through the red tape of skilled migration may have taken a lift with the inclusion of key repair roles on thew federal government’s core skills list.
The Australian Government announced the release of the Core Skills Occupation List (CSOL) on Tuesday December 3 and it includes panel beaters and spray painters (vehicle painters) in its list of 456 occupations.
It also includes motor mechanics and automotive electricians among nine essential automotive trades as part of the 456 occupations eligible under the new Skills in Demand visa and the Direct Entry stream of the Employer Nomination Scheme (subclass 186) visa.
Other approved automotive occupations include diesel Motor Mechanic, Vehicle Body Builder, Vehicle Trimmer. Motorcycle Mechanic and Small Engine Mechanic.
Major Victory
MTAA CEO Matt Hobbs said it was a “major victory” for the automotive sector across Australia and a credit to the united advocacy of several key groups.
.”Our comprehensive submission, backed by extensive economic research from Deloitte Access Economics, clearly demonstrated the critical necessity of including these automotive trades in the CSOL.”
“This successful outcome validates MTAA’s evidence-based approach, which included detailed wage analysis and industry data highlighting the severe skills shortages facing the sector” Hobbs says.
“It also highlights the strength of state motor trade associations (MTAs) and the Victorian Automotive Chamber of Commerce network in presenting member issues and well-crafted solutions to government. “The sheer number of businesses and diversity of the MTA member network is the strength of the MTAA. We represent the Australian automotive industry from dealer to recycler and everyone in between.
United cause
“This result highlights what can be achieved when we work together as one industry,”Hobbs says.
“The submission demonstrated that automotive trade wages consistently exceed the Temporary Skilled Migration Income Threshold (TSMIT), underlining the sector’s capacity to support skilled migration pathways.
“This decision addresses a critical workforce challenge facing automotive businesses across Australia,” Hobbs says “The inclusion of these occupations will provide much-needed access to skilled workers, supporting the sustainability and growth of our industry across Australia.”
Severe skills shortage
VACC CEO Geoff Gwilym corroborated this position and the importance of the advocacy to ensure the government was listening to industry issues.
“The inclusion of these critical automotive occupations acknowledges the severe skills shortages facing our sector and provides a clear pathway for addressing workforce challenges.”
The successful outcome follows extensive advocacy work undertaken by the MTAA and VACC, which included comprehensive economic analysis from Deloitte Access Economics.
This landmark report, which captured the direct experiences and challenges of VACC members, proved instrumental in demonstrating to government the urgent need for action on skills shortages in the automotive sector.
“This shows what can be achieved when industry voices are heard and supported by robust economic evidence,” Gwilym says.
“The government’s decision reflects their recognition of the grassroots feedback from our members, validated through the Deloitte Access Economics analysis.”
“The evidence-based submission, incorporating detailed wage data and industry insights, clearly demonstrated the critical need for skilled automotive workers in Australia. This decision will help address the ongoing workforce challenges faced by automotive businesses across Victoria and nationally.”
Local recruitment not enough
The Australian Automotive Aftermarket Association also submitted research developed by Fifthe Quadrant to ensure the auto trades stayed on the list.
“When the government announced potential limits to skilled migration earlier in the year many of our members feared that key trades would be removed from the CSOL,” AAAA CEO Stuart Charity says.
“While migration alone cannot resolve the labour shortages the automotive industry faces, maintaining access to skilled migration is crucial. Removing these critical pathways would have further constrained many small businesses already grappling with workforce challenges.
“Our submission forecasted the substantial impact this could have had on workforce capacity. In 2023, our members completed approximately 24 million service and repair jobs on Australian vehicles—a number expected to rise to 40 million by 2030 as vehicle sales continue to grow.
“While we are committed to encouraging more Australians to pursue careers in the automotive industry, the reality is that domestic training alone cannot meet this increasing demand. A multifaceted approach, including skilled migration, is essential to sustaining our industry’s growth and to meet the growing demand of Australian vehicle owners,”
Collision repairers and the wider automotive industry have repeatedly cited cost and red tape as two of the key barriers to utilising skilled migrants to fill the ongoing shortage of skilled workers.
Barriers for business
IN both the 2023 and 2024 Capricorn State of the Nation Special Reports the shortage of skilled workers was one of the big issues facing the automotive and repair industries with figures as high as 61 per cent of paint and panel businesses struggling to find skilled staff.
In 2023 it found the expense and difficulty of negotiating the visa system for skilled migrants has also been highlighted as a major barrier with 68 per cent of repair businesses saying it was two complex and a third saying it was too expensive.
The AAAA has also highlighted a potential shortage of more than 30,000 workers across the repair sector which the government needed to act on.
More to come
In a statement the Department of Home Affairs said the new CSOL fulfils the Government’s commitment to replace complex, out of date and inflexible occupation lists in our temporary skilled visa program.
“The CSOL is a single consolidated list, informed by labour market analysis and stakeholder consultations by Jobs and Skills Australia (JSA) that provides access to temporary skilled migration for 456 occupations.”
The CSOL will apply to the Core Skills stream of the new Skills in Demand visa, which will replace the Temporary Skill Shortage (subclass 482) visa on 7 December 2024. The CSOL will also apply to the Direct Entry stream of the permanent Employer Nomination Scheme (subclass 186) visa.
More details on other reforms will be released on 7 December 2024, including the Skills in Demand visa and National Innovation visa.
See the full list here