Acute labour shortage puts visas in the Budget spotlight

Australia is suffering through an acute labour shortage, leaving many businesses struggling to stay afloat. Many, including the government, say bringing more skilled workers from overseas is the answer, but the results won't be automatic. In the lead up to Labour's first budget, industry leaders are urging the government to dedicate more money and resources to enticing workers to the country, and cutting the red tape and bureaucracy.

File Photo: Immigration Department in Melbourne. (AAP Image/Joel Carrett) Source: AAP / JOEL CARRETT/AAPIMAGE

From the factory floor to farms, GP clinics, and classrooms - Australia is in the grips of a national labour shortage.

The most obvious stop-gap solution, according to leaders, is more visas for more foreign workers.

Raising the permanent migration cap was a central outcome of last month's jobs and skills summit in Canberra led by the Prime Minister.

"It's my great hope that this jobs and skills summit marks the beginning of a new culture of cooperation."

Australia's intake is to go from 160,000 to 195,000 places.

Around 5,000 of those will be allocated to the healthcare sector, 6,000 to workers with 'critical infrastructure skills,' and nearly 7,000 to the technology sector.

Regional visas will also increase by 9,000, to 35,000 places. But industry leaders say this only answers part of the problem.

Around 880,000 prospective workers are currently waiting in Australia's massive visa-processing backlog.

Chief Executive of Restaurant & Catering Australia Belinda Clarke says it must be fixed.

"We certainly need some reform in this processing. There's a lot of red tape that needs to be reduced and it needs to start happening straight away. I think if we're looking at the opportunities to be able to fill this gap in our workforce, it needs to start there."