Home Affairs Minister Tony Burke has revealed the government is considering offshore recognition of skills to avoid lengthy wait times for migrants once they arrive in Australia.
At least 620,000 permanent migrants are working below their skill level in Australia, according to government figures.
Many who travel to Australia with in-demand skill sets report finding the process of having their qualifications recognised lengthy, expensive and confusing.
This often leads them to work in other jobs, such as food delivery or Uber driving, far from home support during the process.
During his first National Press Club address as home affairs minister on Thursday, Burke said the government is "working through" the possibility of offshore recognition or further training.
"There's conversations about exactly that. I've had partner countries raise that with me as well," Burke said.
"The challenge is to find which of the careers and skill sets you could train for that don't require a practical."
He explained that the government would have to either be confident that the qualification doesn't require an onshore practical assessment or provide offshore training that meets the necessary standard.
He said it was all part of the discussions the government is "working our way through", stopping short of making any announcement.
However, Burke noted that those who arrive in Australia on sponsored visas, with employment already lined up, do not face these barriers.
"This has been a wicked problem that no government has been able to solve in the lifetime of any of us," he said.
"If we can unlock this, then everybody wins. The economy wins, and the immigrant who is being given a promise of what it will be like to work in Australia wins as well."
In its submission to the August economic roundtable, Activate Australia's Skills estimated the nation's economy could grow by $9 billion every year or $25 million a day, if the skills of migrants were put to better use.
Activate Australia's Skills is an alliance campaign of businesses, unions, social services and community groups pushing a skills and qualifications recognition policy.
What industries could the government target first?
Felix Pirie, CEO of the Independent Tertiary Education Council Australia, noted several sectors could benefit from offshore recognition to expedite the process.
"There is the capacity for some qualifications to be delivered offshore and recognised in Australia, where the additional elements required for Australia are delivered by Australian providers in an offshore context," he told SBS News.
"There are already independent skills training providers delivering qualifications in hospitality, aged care, early learning and so on, in places like the Philippines, in Indonesia, and they're delivering Australian qualifications in those places, and those graduates from those qualifications are ready and able to come to Australia and work."
Pirie described the suggestion as a "really positive thing", but stressed the government "can't lose sight of the need to have students in Australia supporting our international education sector".
In their 2024 report, Master Builders Australia estimated migrants in construction faced an average 18 months' wait and $10,000 bill to have their skills recognised.
Master Builders Australia CEO Denita Wawn told SBS News she welcomed proposed changes to skilled migration, estimating the government needs to attract roughly 100,000 extra workers for construction needs, including building the National Housing Accord target of 1.2 million homes.
"The building and construction industry is facing skills shortages that can't be filled domestically alone.
"We welcome any discussions with government about how we reduce the costs and long wait times skilled migrants face to have their experience and qualifications recognised without comprising on standards."
