Automotive skilled migration win

The Australian government introduced significant changes to the Core Skills Occupation List (CSOL) to tackle workforce shortages in critical industries, the updated list featuring 456 occupations eligible for skilled migration, including nine key automotive trades now officially recognised under the program.

The revised CSOL updates previous lists from the temporary skilled visa program and, based on analysis from Jobs and Skills Australia (JSA), the new consolidated approach seeks to enhance access for industries facing significant skill shortages.

At the time, Motor Trades Association of Australia (MTAA) CEO Matt Hobbs said the changes “will provide much-needed access to skilled workers, supporting the sustainability and growth of our industry across Australia”.

The new approach will support two key visa streams: the Core Skills stream under the Skills in Demand visa – replacing the Temporary Skill Shortage (subclass 482) visa – and the Direct Entry stream under the Employer Nomination Scheme (subclass 186) visa.

Australian Automotive Aftermarket Association (AAAA) CEO Stuart Charity said that following last year’s announcement of potential skilled migration limits there had been fear among AAAA members that “key trades would be removed from the CSOL”.

“While migration alone cannot resolve the labour shortages the automotive industry faces, maintaining access to skilled migration is crucial. Removing these critical pathways would have further constrained many small businesses already grappling with workforce challenges.”

Workforce shortages and financial impacts

While the expansion of the CSOL is an important step in addressing workforce gaps, the Australian automotive industry remains at a critical point in terms of skilled worker shortages.

According to the Institute of the Motor Industry, the sector will face a shortfall of 160,000 workers by 2031, with vehicle technicians remaining among the most sought-after roles.

Several factors are contributing to this shortfall, including an ageing workforce, a decline in apprenticeship opportunities, reduced immigration rates, and the rapid technological shift towards electric vehicles (EVs).

These shortages are now translating into financial challenges for businesses. Recent data reveals that 56 per cent of automotive businesses report that workforce gaps are directly impacting profitability, with many struggling to fill roles tied to hybrid and electric vehicle systems. 

Rising demand for specialised expertise in EV technology, advanced driver assistance systems (ADAS) and digital software development has intensified these challenges.

As a result, labour costs are increasing, sector competitiveness is declining, and consumers are ultimately bearing the burden with higher costs.

EV technicians officially recognised

Addressing these workforce shortages and rising demand for EV specialists, the Australian government has also formally recognised EV Technicians under the Australian Government’s Occupational Standard Classification (OSCA) with the new occupation code 351434.

This decision follows extensive collaboration and advocacy from industry stakeholders and marks a pivotal step in supporting Australia’s transition to electric vehicles by formally tracking the profession as part of the national occupational data system.

Mr Hobbs described the inclusion of multiple automotive roles in the CSOL as well as a new EV Technician classification “represents a significant win for our industry”. 

“It demonstrates the government’s recognition of the automotive sector’s critical role in Australia’s economic future and reinforces our industry’s position as a key driver of technological advancement and sustainable transport solutions.”

This recognition aligns with figures showing that Australian hybrid sales hit a record in 2024 with 172,696 units (not including mild hybrids) while combined EV and plug-in hybrid sales surpassed 100,000 units in a single year for the first time. It means more than 22 per cent of new vehicles sold last year came with heavy electrification.

Demand for automotive technicians specialising in EV technology is going to explode, requiring quality training programs and creating new career pathways.

Victorian Automotive Chamber of Commerce (VACC) CEO Geoff Gwilym said 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.”