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“The skilled migrant system needs a complete overhaul. The visa options available for construction are not working.
"Data from the Department of Home Affairs shows just 1,346 workers in construction trades have been granted temporary work visas in the nine months to March 2024.
“The shortage of skilled workers is a major impediment to the supply of housing. Labour shortages are resulting in project delays which add to the cost of construction.
“Risks associated with labour shortages are causing businesses to shelve projects that could deliver the housing that Australia needs.
“The residential building industry is just one part of Australia’s construction landscape. Businesses in the housing industry are competing with businesses delivering commercial buildings and infrastructure construction projects, and the mining industry.
“This competition has become even more fierce given the growth in government investment in projects linked to the transition to clean energy, and the long list of other infrastructure projects underway around the country.
“Australia’s 1.2 million housing supply target can only be achieved if the capacity of the construction industry continues to grow and meet the needs of all these sectors.
“Providing career opportunities for local workers should always be the priority, however, this alone will not see the workforce grow quickly enough.
“The skilled migration system has a role to play in enabling businesses to source workers from overseas to supplement the local workforce and fill skills gaps when they arise.
“The temporary work visa system was touted as a demand driven system, however, it is anything but.
“The rebound in immigration as borders reopened included a lift in the number of construction trades workers with temporary work visas returning to Australia. However, the numbers arriving are still very small and very few are sponsored by businesses in the residential building industry.
“If the Government is truly committed to seeing the Housing Accord target achieved more must be done to train local workers and enable industry to make better use of the skilled migration system,” concluded Ms Martin.
“Australia’s population reached 27.4 million by the end of 2024, up by 445,900 people, or 1.7 per cent for the year,” stated HIA Senior Economist, Tom Devitt.
The Tasmanian election that no-one wanted to have is in full swing, and while the limited campaign period is unlikely to provide the usual platform to promote key policies and reforms, HIA is calling on both major parties to prioritise housing policies given the significant challenges across the state.
“Our dated and complex planning system is littered with speed bumps that could easily be removed”, said Brad Armitage, HIA NSW Executive Director.
“The Victorian government’s proposal to update home building contract laws to make them fit for use in the 21st century is welcomed by HIA,” stated HIA Executive Director, Keith Ryan.