Sector Split Over Migrant Tradies Reversal

The Federal Government addition of building trades to its core occupation list has drawn mixed industry response after it excluded key machinery operators from the new skilled migration scheme.

The government move reversed its position on skilled migration for construction workers, adding building trades to its core occupation list in a bid to address the nation’s housing crisis and chronic skills shortage.

It is a significant shift from December, 2023, when trades including plumbers, bricklayers and cabinetmakers were notably absent from the draft Core Skills Occupation List (CSOL).

The new list will apply to the Skills in Demand visa program, which replaces the Temporary Skill Shortage visa from Saturday, December 7.

The new SID visa will offer successful applicants a four-year stay with potential for permanent residency.

The CSOL comprises more than 450 occupations and will apply to workers earning between $70,000 and $135,000 annually.

While builders earning above this threshold remain excluded from the fast-track tier, the inclusion of construction trades in the core stream represents a significant concession to industry concerns.

But Master Builders Australia chief executive officer Denita Wawn criticised the exclusion of machinery operators from the list.

Those roles command salaries well above the temporary skilled migration income threshold with crane operators earning an average of $118,000.

“You can’t build houses, schools, hospitals or roads without crane, bulldozer and excavator operators, who have not made the cut,” Wawn said.

▲ Master Builders Australia chief executive officer Denita Wawn.

Property Council chief executive Mike Zorbas welcomed the announcement and noted its historical context.

“Over the last 20 years, only 2 per cent of migrants coming to Australia had visas for construction jobs during a surge of welcome population growth, mega projects and housing need,” Zorbas said.

“Industry urgently requires more workers to plug construction skills gaps and deliver critical infrastructure and housing projects already in the pipeline.”

The policy shift comes as the construction industry grapples with delivering the government’s target of 1.2 million new homes by 2029.

Recent data shows only 168,164 new home approvals in the 12 months to October 2024, significantly below the annual requirement of 240,000 needed to meet the target.

Urban Taskforce chief Tom Forrest said the decision was overdue.

“The property development construction industry has been waiting for over two years since the jobs and skills summit for the Albanese government to realise that there was and is a chronic shortage of skilled trades across Australia,” Forrest said.

▲ Urban Taskforce chief Tom Forrest.

The scale of the challenge is substantial, with business groups including Master Builders estimating that 500,000 additional trades workers are needed to deliver on the government’s housing promises.

The decision follows mounting pressure from industry and independent politicians. Wentworth MP Allegra Spender had argued it was indefensible not to fast-track construction workers into the country, given the housing shortage.

Lendlease chief executive Tony Lombardo said only about 1400 visas had been issued for builders in the nine months before the announcement.

Skills and training minister Andrew Giles said the reworked occupations list would help address genuine gaps in the economy, while working alongside efforts to train domestic workers.

The Urban Developer asked the CFMEU for comment.