In a significant victory for the automotive sector, the Australian Government has announced the inclusion of all key automotive trades in the new Core Skills Occupation List (CSOL). This landmark decision comes after extensive advocacy work by the Victorian Automotive Chamber of Commerce (VACC) in partnership with the Motor Trades Association of Australia (MTAA). The announcement marks a turning point in addressing the critical skills shortage that has long challenged the automotive industry.
Key Points:
- Nine essential automotive trades included in new migration pathways
- Changes effective from 7 December 2024
- Applies to new Skills in Demand visa and Employer Nomination Scheme
- Member feedback instrumental in securing outcome
- Comprehensive economic analysis supports industry position
- Both temporary and permanent migration pathways available
Historic Achievement for Industry
The inclusion of all core automotive trades in the CSOL represents one of the most significant policy achievements for the sector in recent years. The decision acknowledges the essential role that automotive trades play in maintaining Australia's transport infrastructure and supporting economic growth.
"This is a significant victory for the automotive industry," says VACC CEO Geoff Gwilym. "The government's decision reflects their recognition of the grassroots feedback from our members, validated through the Deloitte Access Economics analysis. This shows what can be achieved when industry voices are heard and supported by robust economic evidence."
Member Voice Drives Change
The successful outcome represents a triumph for VACC members, whose experiences and challenges were captured in a comprehensive Deloitte Access Economics report. This evidence-based approach proved crucial in convincing the government of the urgent need to address skills shortages in the automotive sector.
The report highlighted several critical factors that influenced the government's decision:
- Sustained wage growth across automotive trades, indicating strong market demand
- High retention rates among skilled workers, showing career stability
- Increasing complexity of automotive technology requiring specialized skills
- Growing vehicle fleet size creating ongoing demand for services
Comprehensive Industry Coverage
The new CSOL includes a wide range of automotive occupations, ensuring broad coverage across the industry's diverse sectors. The approved occupations reflect the full spectrum of essential automotive trades:
- Diesel Motor Mechanic
- Automotive Electrician
- Panelbeater
- Vehicle Painter
- Motor Mechanic (General)
- Vehicle Body Builder
- Vehicle Trimmer
- Motorcycle Mechanic
- Small Engine Mechanic
Impact on Skills Shortage
The inclusion of these occupations in the CSOL addresses a critical workforce challenge that has impacted the automotive industry for many years. Recent industry surveys indicate that over 75% of automotive businesses have experienced difficulty filling skilled positions, with some vacancies remaining unfilled for more than six months.
The new migration pathways will help businesses access skilled workers while maintaining high standards of qualification and experience. This balanced approach ensures that migration complements, rather than replaces, domestic training and workforce development initiatives.
What This Means for Industry
The CSOL forms part of the government's reformed temporary skilled migration programme and will operate alongside the new Skills in Demand visa, replacing the previous Temporary Skill Shortage (subclass 482) visa. These changes provide automotive businesses with clear pathways to address workforce challenges through both temporary and permanent migration streams.
Key benefits for employers include:
- Streamlined application processes for skilled worker visas
- Clear pathways to permanent residency for qualified workers
- Reduced processing times for eligible applications
- Greater certainty in workforce planning
Implementation and Support
The changes will take effect from 7 December 2024, with VACC and MTAA working closely with government agencies to ensure a smooth transition. Both organisations will provide ongoing support to members navigating the new system.
"Implementation is critical," Mr Gwilym adds. "We're committed to working with all stakeholders to ensure these changes deliver real benefits for our members and the broader automotive industry. This includes providing guidance and support as businesses adapt to the new arrangements."
Next Steps
VACC and MTAA will continue working closely with Jobs and Skills Australia and relevant government departments to ensure these reforms are implemented effectively. The organisations will monitor the impact of these changes and continue advocating for members' interests in addressing industry skills needs.
Key focus areas for the coming months include:
- Development of detailed guidance materials for members
- Regular consultation with government on implementation
- Monitoring of application processing times and outcomes
- Collection of member feedback on the new system
Member Support
VACC members seeking more information about these changes can contact the VACC Industry Policy team. Additional resources and guidance materials will be made available through the VACC website in the coming weeks.
Looking Ahead
The inclusion of automotive trades in the CSOL represents a significant milestone in addressing the industry's workforce challenges. However, it is just one component of a broader strategy to build a skilled and sustainable automotive workforce. VACC will continue to advocate for policies and programmes that support skills development, apprenticeships, and industry growth.