Unions, business on board with Labor migration overhaul

Business has praised proposed changes to Australia's migration system, saying the critical overhaul will ensure the nation remains competitive and attractive to talented workers.

Home Affairs Minister Clare O'Neil announced the overhaul in a National Press Club address on Thursday, in which the government will work to create a three-tiered skilled migration system for the first time.

Australian Chamber of Commerce and Industry chief executive Andrew McKellar said the migration review's suggestions simplified and streamlined the system.

"We are in a global talent war and this proposed migration overhaul gives us a fighting chance to recruit the skilled workers Australia desperately needs," he said.

"Every day we hear from businesses of every size, in every industry, and right across the country that they're facing unprecedented challenges trying to find enough skilled workers to fill job vacancies."

The nation's peak union body backed the government's plan to raise the Temporary Skilled Migration Income Threshold from $53,900 to $70,000, which had been frozen since 2013.

The ACTU also supports the new pathway to permanent residency for temporary skilled migrants.

"The government's commitment to design exploitation out of the system is critically important and we look forward to working with them to see this realised," president Michele O'Neil said.

"We are pleased to see the government commit to an evidence-based approach to migration by establishing a formal role for the new Jobs and Skills Australia to determine skills needs based on tripartite advice."

Business Council chief executive Jennifer Westacott expressed concern at raising the income threshold, saying the changes are "workable, but do represent a significant increase".

"This change will need to be delivered alongside action to remove onerous and ineffective red tape while still ensuring Australian workers don't miss out by targeting migrants with the scarce skills in short supply around the world," she said.

Universities Australia chief executive Catriona Jackson said the migration system should encourage the hundreds of thousands of students to stay, rather than deter them.

"International students make a significant contribution to our communities and the nation while they study, yet too many are unable to pursue work in their chosen profession after the graduate," she said.

Australian Private Hospitals Association chief executive Michael Roff said in his sector there was a shortage of 8000 nurses, while competing globally for staff.

"Having measures in place that will ensure an easy pathway to residency in Australia is a very welcome move," he said.