STATE BUDGET: We must change the rules for employing international students and graduates

Although South Australia’s unemployment rate rose from its historic low of 3.7% in March to 4.3% in April, the labour market remains exceptionally tight. When we at the South Australian Business Chamber speak to our members, their number one issue is always staff shortages. Anecdotal evidence is supported by data. According to the The South Australian Business Chamber – William Buck Survey of Business Expectations for March quarter 2023, 54.9% of businesses experienced labour shortages. This number was even higher in the December quarter at 58.3%.

To deal with staff shortages, one option for businesses is to consider hiring international graduates, who have completed their studies at an Australian tertiary institution. 

The South Australian Business Chamber welcomed the Federal Government’s recent decision to grant an additional two years of post-study work rights for holders of the ​‘Temporary Graduate – Post Study Work Visa (subclass 485)’. Under the new rules, the post-study ​‘stay and work’ period for eligible graduates has increased as follows: 

• Four years for Bachelor degree graduates, up from two years previously

• Five years for Master’s degree graduates, up from three years previously

• Six years for PhD graduates, up from four years previously

In the South Australian Business Chamber’s 2023/2024 pre-State Budget Submission we advocated for an awareness campaign about the benefits of this visa subclass. We often hear that employers avoid job applicants with this visa type as they believe that the person will only be able to work in Australia for a short period of time. Through our work with StudyAdelaide we also hear that 485 visa holders often struggle to even get an interview. 

Ms Jane Johnston, Chief Executive of StudyAdelaide, says: ​“Businesses desperate to fill roles are missing out on skilled and qualified graduates already here in South Australia. If businesses continue to overlook these graduates we will lose this valuable, diverse and skilled group to other parts of Australia and the world upon their graduation.

“The simple message for employers about the 485 visa is that they can employ international graduates just like a local with no cost or additional effort to their business.”

To widen your talent pool, increase workplace diversity and innovation or reach new export markets visit www​.employ​er​por​tal​.com​.au. The Employer Portal was established by StudyAdelaide and includes FAQ’s, employer case studies and a simple process to promote vacant roles to international graduates.

Another option to fill staff shortages is hiring international students, who are still studying. Rules are also changing for this cohort, but in this instance to re-introduce work restrictions. These were relaxed during the COVID-19 pandemic and completely removed in January 2022 to allow international students to work over the limit of 40 hours per fortnight. This will change on 1 July, with the introduction of an increased rate of 48 hours per fortnight. If you are currently employing an international student, make sure to note these changes. The exception is international students already working in the aged care sector, who may continue to work unrestricted hours until 31 December 2023.

If you’re looking for part-time or casual staff and would like to reach international students, you can also consider using StudyAdelaide’s Job Shop. Contact the team at enquiries@​studyadelaide.​com to learn more.