The Motor Trades Association of Australia (MTAA) welcomes the opportunity to contribute to the Joint Standing Committee on Migration’s Inquiry into the value of skilled migration to Australia. For the automotive sector, the inquiry is central to workforce sustainability, road safety and economic productivity.
Australia’s automotive retail, service and repair sector employs more than 320,000 Australians and is dominated by small, family-owned businesses operating across metropolitan, regional and remote communities. These businesses provide essential services that support everyday mobility and keep freight, agriculture, construction, public transport and emergency services operating safely and reliably.
Despite this critical role, the sector faces persistent skills shortages across almost every occupation, including mechanics, diesel technicians, body repairers, automotive electricians, tyre fitters, tow truck drivers and parts interpreters. These shortages are structural and have been building for more than a decade.
A long-term workforce challenge
Declining apprenticeship commencements, low completion rates, an ageing workforce and increasing vehicle complexity have all contributed to current workforce pressures. Many businesses are now operating below capacity because they cannot recruit skilled workers, particularly in regional areas.
These shortages affect more than individual businesses. Longer booking times, reduced service availability and closed service bays have implications for transport safety, supply chains and local economies.
Skilled migration is essential
MTAA’s submission makes clear that skilled migration is a critical component of the automotive workforce. Domestic training alone cannot meet current demand or support the rapid technological change underway across the sector.
As vehicles become more complex, skilled migrants help maintain service continuity and allow businesses to remain viable. Migration also supports apprenticeships by stabilising staffing levels so employers can continue to train and supervise new entrants.
Migration and apprenticeships must work together
Skilled migration and apprenticeships are complementary systems. Labour shortages limit employers’ capacity to take on apprentices, while rising costs and administrative burden further reduce participation in training. Without migration support to fill immediate gaps, the domestic skills pipeline weakens over time.
The need for a modern migration system
Current migration settings are not meeting the needs of the automotive sector. Employer-sponsored pathways are often slow and costly, occupation lists do not reflect real labour market conditions, and income thresholds can disadvantage regional employers.
MTAA is calling for a migration system that is responsive, evidence-based and aligned with workforce needs across all regions.
Looking ahead
A well-functioning skilled migration system is essential to maintaining transport safety and economic productivity. For the automotive sector, reform is about ensuring businesses can remain open, apprentices can be trained and communities can continue to rely on safe and reliable transport services.
MTAA stands ready to work with government to ensure skilled migration settings support Australia’s automotive workforce now and into the future.
Read our submission in full here.
