Prioritising reform of Australia’s broken overseas skills recognition system at this week’s Economic Reform Roundtable would help kickstart Australia’s productivity project, according to a number of prominent participants.

Right now, there are 620,000 permanent migrants in Australia working below their skill level, despite widespread workforce shortages impeding productivity. This mismatch is dragging down productivity and holding back our economy.

A key driver of this problem is Australia’s costly system for recognising overseas-acquired skills and qualifications which locks people out of the jobs they’re qualified for through excessive fees, unnecessary red tape, slow and confusing processes, and lack of accountability.

In its submission to the Economic Reform Roundtable, the Activate Australia’s Skills campaign is calling for four practical solutions to reform skills recognition and boost national productivity:

• Establish one national governance system for all overseas skills and qualifications recognition, including an Ombudsman with regulatory power to provide independent oversight and transparency.
• Create a more joined-up system that links skills recognition for migration purposes with licensing and accreditation for employment purposes.
• Provide financial support for individuals to remove cost barriers and an online portal with all the information so people know what they need to do.
• Set up Migrant Employment Pathway Hubs, or career gateways, with skills recognition navigators to get qualified people working in their professions again.

In addition to key roundtable participants, more than 100 organisations are supporting these proposals as a shovel ready solution to deliver immediate productivity gains, fill skills gaps and grow the economy.

Comments attributable to Dr Martin Parkinson AC PSM, Former Secretary of Treasury and the Department of the Prime Minister and Cabinet; Chair of the Migration System Review:

“This is a political and economic no-brainer. Everyone here, citizen, resident or new migrant, should have the opportunity to contribute to their maximum ability. Fixing the skills recognition system would improve labour market outcomes for everyone, but better matching would significantly increase the benefits of our migration program. Addressing this issue would provide an almost immediate boost to Australia’s economy and improve the impact of the migration program on an ongoing basis.”

Comments attributable to Allegra Spender MP, Member for Wentworth:

“Fixing Australia’s skills recognition regime is not just about fairness. It is an essential part of boosting economic productivity and growth. It is about harnessing the talent of migrants already in Australia whose skills are being wasted.”

Comments attributable to Liam O’Brien, Assistant Secretary, Australian Council of Trade Unions:

“Tacking the unnecessary barriers to skills recognition while maintaining our existing high standards for skills will unlock a better future for all workers here in Australia.”

Comments attributable to Cass Goldie, CEO, Australian Council of Social Service:

“The Treasurer and Prime Minister are calling for consensus on big productivity solutions, and this is one of them backed by industry, unions, economists and the community sector. Fixing our overseas skills recognition system will boost our economy, improve services, reduce waiting lists and allow skilled people to work in their professions again. It’s a win-win for us all.”

Leading refugee resettlement and multicultural services provider SSI will deliver the Inclusive Employment Australia (IEA) program in areas of NSW, Queensland and Victoria after being awarded a multi-year contract by the Federal Department of Social Services (DSS). 

SSI CEO Violet Roumeliotis said as a refugee and migrant services provider with 25 years’ experience, the organisation is well placed to provide specialist IEA services given our rich history in working with refugees across multiple service streams. 

SSI will provide tailored employment services from November 2025 for at least five years under the IEA program, which aims to improve workforce participation and social inclusion for people with disability, Ms Roumeliotis said.

“The program will support individuals with disability, injury or health conditions to prepare for, secure and sustain meaningful employment, while also helping employers adopt inclusive recruitment and workplace practices,” she said.

“As a refugee and migrant services provider, SSI brings a unique and culturally responsive approach to employment services. We understand the complex barriers faced by priority groups and we are proud to be leading this national effort to create fairer, more accessible pathways to employment.” 

Ms Roumeliotis said the contract built on SSI’s experience delivering the Disability Employment Services (DES) program since 2018 and reinforces its leadership in driving social and economic inclusion. 

The IEA program sets a new benchmark for inclusive employment services in Australia, with a strong emphasis on participant rights and service quality. SSI will deliver services through a network of Employment Service Areas (ESAs), including key regions such as Canterbury / Bankstown and Fairfield in NSW, Logan and South Brisbane in Queensland, and Bayside and Westgate in Victoria.