(Cth) Abolish Occupation Lists from Skilled Migration Nomination Requirements

Scout Salathiel, Sonal Kamble, Makkiah Sawlwin & Nya Sharma
6 days ago
7 min read

Author: Scout Salathiel, Sonal Kamble, Makkiah Sawlwin & Nya Sharma | Publish date: 27/8/2026

P: In Australia, applicants for skilled migration visas must nominate an occupation from a limited list.
S: The Minister for Immigration and Citizenship should omit the skilled occupation nomination requirement for skilled migration visas listed in Schedule 1, Item 1138 in the Migration Regulations 1994 (Cth), and substitute it with a skill level classification.
E: Law Council of Australia (2026): ‘A skilled occupation list should be abolished in favour of a skill level classification.’

Problem Identification:

Schedule 1, Item 1138 of the Migration Regulations 1994 (Cth) states that applicants for skilled migration visas must nominate a skilled occupation, included on the core skills occupation list (occupation list), that aligns with their subclass of work visa.

The 2023 Economic Surveys of Australia by the OECD found that the occupation list ‘slow to be updated and may not adequately reflect the skill needs of industry.’

Further, the Human Resources Director (HRD) reported that this means ‘Australia risks missing its … productivity goals’ under current skilled migration settings.

Context:

According to law firm Aitken Partners, the occupation list refers to an ‘Australian government-approved list of occupations that are in demand within the Australian labour market.’ Jobs and Skills Australia (JSA) stated that the occupation list is updated annually using multiple data sources, including data from states and territories.

According to JSA, in contrast, a skills-based classification ‘maps the skills used within occupations, providing a “common language” of skills where things like occupation titles and qualifications have long been used as proxies.’

Arguments:

According to the Grattan Institute, determining visa eligibility using the occupation list is ‘slow’ and ‘administratively cumbersome’, which ‘creates uncertainty for migrants’. According to JSA, occupation list data sources can experience lags by ‘up to a year’. The OECD found that the composition of skilled migrants is determined by ‘outdated data systems’ and ‘infrequently-updated occupation lists’. Dane Moores, head of strategic relations at Settlement Services International, stated that ‘thousands of [skilled migrants] are being needlessly locked out from filling skills shortages due to … slow and confusing processes throughout the skills recognition system.’

HRD reported that the restrictive occupation list is ‘leaving employers in limbo’. They explained that employers experiencing chronic shortages often cannot sponsor migrants because their occupation is not explicitly mentioned on the occupation list. The Australian Logistics Council (ALC) stated that ‘from an industry perspective’, several ‘shortage-critical roles’ like automation, sustainability and cybersecurity are ‘largely absent’ from the occupation list’s classification framework. The Primary Industries Skills Council (PISC) stated that ‘the failure of the current skill visa model to provide employers with employee outcomes has resulted in both employers and industries having to develop specific Labour Agreements just to source the skills they need.’

The Business Council of Australia argued that the occupation list ‘helps fill key skills shortages across the economy.’ However, the Grattan Institute stated there is no ‘guarantee that migrants recruited to work in particular occupations will stay in those fields once granted permanent residency’. They reported that ‘less than 60 per cent of recent migrants granted a permanent skilled visa were working in their nominated field’.

Advice/Solution Identification:

The LCA have called for the occupation list to be ‘abolished in favour of a skill level classification’, attached to all subclasses of skilled migration visas. Chartered Accountants Australia and New Zealand and CPA Australia have advocated for the focus of skilled migration to shift from occupations to skills by transitioning from occupation lists to skills lists, stating that a skills list could help ‘grow a competent and agile labour force’ and ‘facilitate a common language between … employers, educators and trainers and assessors’.

Precedent:

There is international precedent for skill-based migration eligibility assessments. In Saudi Arabia, work permits are granted through a skill-based classification system.

Public Support of the Solution:

(This list reflects publicly stated positions and should not necessarily be taken as endorsement of this specific brief.)

Broad Support

The Grattan Institute - They recommended ‘abolishing occupation lists’ so ‘any occupation would be eligible’ for skilled migration. However, they have not explicitly called to abolish the occupation list in favour of a skill list in migration eligibility assessments.
Organisation for Economic Co-operation and Development (OECD) - They recommended reforming ‘the composition of the skilled migrant intake’ to be ‘more responsive to changes in the skill needs of industry’. However, they have not explicitly called to abolish the occupation list in favour of a skill list in migration eligibility assessments.
Productivity Commission - They have stated that ‘a shift away from occupation-based lists’ can ‘refocus the [migration] program on productivity’. However, they have not explicitly called to abolish the occupation list in favour of a skill list in migration eligibility assessments.

News Coverage:

Human Resources Director - “Skills in Demand visa falling short for Australian employers”. This article covered the impact that processing delays and a restrictive occupation list have on employers who rely on overseas workers. By: Jack Campbell | 29 June 2026 - Read the article here.
HR Leader - “‘An ongoing need’ for regular skills list reviews”. This article covered the 2026 Skills in Demand report, outlining changes in the occupation composition of skilled visa intake. By: Carlos Tse | 9 June 2026 - Read the article here.
News.com - “‘Hopeless’: Budget confirms Labor’s stunning migration blowout”. This article reported on visa changes in early 2026, including the allocation of over 70% of the permanent migration level to the skill stream. By: Frank Chung | 13 May 2026 - Read the article here.
Monash University - “Australia’s migration program and the social work gap”. This article covered failures of the migration program to address critical skill shortages in human services. By: No author listed | 1 April 2026 - Read the article here.

Where to go to learn more:

(2026) Inquiry into the value of skilled migration to Australia | Law Council of Australia - This submission considered the Skilled Migration Program’s continuing effectiveness to meet current and future labour market and social needs. It recommended that a skilled occupation list should be abolished in favour of a skill level classification, so that employers can decide which occupations are included in the visa program based on their specific needs. View the submission here.
(2026) ANZSCO Occupation profiles | Jobs and Skills Australia - This resource showed the 2026 detailed list of occupations and whether or not they are in a shortage within Australia. View the list here.
(2026) Submissions to the Inquiry into the Value of Skilled Migration | Committee on Migration - This resource showed the 147 submissions made in May 2026 to the Joint Committee on Migration, discussing whether skilled migration is valued by organisations and companies within Australia. View the submissions here.
(2026) 2027 Occupation Standard Classification for Australia (OSCA) Update | Australian Logistics Council - This submission highlighted key limitations within the occupation classification framework from an industry perspective, and recommended enhancing the operational relevance of occupational classifications. Read the submission here.
(2023) Australian Skills Classification Methodology | Jobs and Skills Australia - This document outlined a new basis for turning an occupation-based view of the economy into a skill-based view. View the document here.
(2021) CEDA Annual Report 2020–21 | CEDA - This report outlined that Australia’s permanent skilled migration system is not realising its full economic potential, listing 4 recommendations. View the report here.
Migration Regulations 1994 (Cth) - Read the full Regulations here.

Human Perspective:

Bobby is a young engineer who came to Australia from Nepal to build a career. When Bobby planned his migration pathway, mechanical engineering was recognised as an eligible occupation for a visa nomination. He completed his master’s degree in mechanical engineering at the University of Technology Sydney. He worked hard to build the experience and qualifications required, knowing that his future in Australia depended on meeting the rules of the migration system. He was excited to set foot into the workforce and begin his career as a mechanical engineer. However, when the occupation list was updated during Bobby’s final year of study, mechanical engineering was removed from the nominated occupations. After learning this news, Bobby was disappointed in all the work he put into reaching a goal that was suddenly no longer feasible. Bobby only had 6 months left on his Temporary Graduate Visa. Despite fulfilling all of the earlier requirements, Bobby’s future was now in limbo. Without a secure pathway to permanent residency, Bobby was forced to return to Nepal, leaving behind the career pathway he built, the community he was part of, and the country where he invested years of study and work.

To protect the anonymity of those involved, this is a fictionalised account drawn from an amalgamation of real-life stories, experiences and testimonials gathered during the research process for this brief. Any resemblance to actual individuals is purely coincidental.

Conflict of interest/acknowledgment statement:

N/A.

Support

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Disclaimers

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Reference list:

Australian Logistics Council. (2026, April 10). 2027 Occupation Standard Classification for Australia (OSCA) update: A submission to the Australian Bureau of Statistics. https://austlogistics.com.au/wp-content/uploads/2026/04/260410-2027-OSCA-Update-.pdf

Barker, A., & Tofts-Len, S. (2024). Making Better Use of Migrants' Skills. Committee for Economic Development of Australia. https://cedakenticomedia.blob.core.windows.net/cedamediacontainer/kentico/media/attachments/making-better-use-of-migrants-skills-ceda.pdf

Business Council of Australia. (2024, December 3). Business Council backs skilled migration boost to help address skills crisis [Media release]. https://www.bca.com.au/our-insights/media-releases/business-council-backs-skilled-migration-boost-to-help-address-skills-crisis/

Campbell, J. (2026, June 29). Skills in Demand visa falling short for Australian employers. HRD. https://www.hcamag.com/au/specialisation/employment-law/skills-in-demand-visa-falling-short-for-australian-employers/580545

Carr, C. (2025, August 20). The employee skills 'mismatch' leaving Australia $9 billion poorer each year. SBS News. https://www.sbs.com.au/news/article/permanent-migrants-in-australia-are-working-below-their-skill-level/4dkyi1crv

Coates, B., & Wiltshire, T. (2024). Reforming skilled occupation lists: Submission to consultation on the draft Core Skills Occupations List. Grattan Institute. https://www.jobsandskills.gov.au/sites/default/files/2024-08/Grattan%20Institute.pdf

Coates, B., Wiltshire, T., & Reysenbach, T. (2022). Australia’s migration opportunity: how rethinking skilled migration can solve some of our biggest problems. Grattan Institute. https://grattan.edu.au/wp-content/uploads/2022/12/Australias-migration-opportunity-how-rethinking-skilled-migration-can-solve-some-of-our-biggest-problems.pdf

Chartered Accountants Australia and New Zealand, & CPA Australia. (2022, December 15). Joint submission on A Migration System for Australia's Future. https://www.charteredaccountantsanz.com/-/media/e859e1e72ee3449a9b7d028ee544a3a7.pdf

Emigrate Lawyers. (2025, September 16). Australia Introduces Core Skills Occupation List to Address Critical Skill Shortages: Australia Core Skills Occupation List (CSOL) and Skills in Demand visa overview. https://emigratelawyers.com.au/blog/australia-core-skills-occupation-list-csol-skills-in-demand-visa/

Erickson Immigration Group. (2025, July 9). Saudi Arabia Introduces Skill-Based Classification for Work Permits. https://eiglaw.com/saudi-arabia-introduces-skill-based-classification-for-work-permits/

Human Resources Director (HRD). (2026, April 30). Australia's skilled migration settings ‘not fit for purpose’, HR warned. https://www.hcamag.com/au/specialisation/employment-law/australias-skilled-migration-settings-not-fit-for-purpose-hr-warned/573550

Jobs and Skills Australia. (2025, October). 2025 Occupation Shortage List methodology. Australian Government. https://www.jobsandskills.gov.au/sites/default/files/2025-10/2025%20OSL%20Methodology.pdf

Law Council of Australia. (2026, January 9). Inquiry into the value of skilled migration to Australia [Submission to the Joint Standing Committee on Migration]. https://lawcouncil.au/publicassets/1643b60b-661e-f111-94c4-005056acd090/4810%20-%20S%20-%20Value%20of%20Skilled%20Migration%20to%20Australia.pdf

Organisation for Economic Co-operation and Development (OECD). (2023, October 26). OECD Economic Surveys: Australia 2023. OECD Publishing. https://doi.org/10.1787/1794a7c9-en

Primary Industries Skills Council. (2022). A Migration System for Australia’s Future: A submission for System Reform of Australia’s Migration System. https://www.homeaffairs.gov.au/reports-and-pubs/files/migration-system-aust-future-submissions/m-r/Primary_Industries_Skills_Council.pdf