The Northern Territory is experiencing extreme skills shortages, catalysed by a pause in migrant movements, temporary workers (backpackers), and economic performance.
Property Council of Australia’s Northern Territory Branch, Executive Director Ruth Palmer said that a continuing shortage of supplies and building materials, exacerbated by a shortfall in skilled labour, is resulting in an increased occurrence of development projects becoming unviable.
“Many projects are stalling or failing to progress past the planning stages.
“Enticing more skilled migrants into the NT is critical in reversing this trend.
“Migration was the foundation upon which the Northern Territory was formed.
“In light of the challenges that have been thrown into the Territory’s real property industry post-Covid, we are of the opinion that more skilled migrants should be encouraged to make the Territory their new home.
“We have provided recommendations the government that promote the Northern Territory as a destination for interstate and international workers.
“If the recommendations were to be put into action, we would anticipate seeing an increase in our population growth, workforce attraction, and economic activity.
“This would be a significant step towards realising the Northern Territory Government’s vision for 2030, which calls for a $40 billion economy.
“We recognise the changes required to turn these issues around and we are eager to support the government by proposing and delivering measures to increase the NT’s attractiveness.”
Recommendation One | Convert quarantine facilities into migrant housing
The Property Council has seen media regarding the future use of quarantine facilities and the NT News recent question about what it can be purposed for:
https://www.ntnews.com.au/news/northern-territory/workers-accommodation-homeless-refuge-ideas-for-the-future-of-howard-springs-quarantine/news-story/ae58018075fada0e4f393575eeda56e8
As a solution, the Property Council believes that the Centre for National Resilience quarantine facility can be used as housing for skilled migrants moving to the NT.
The 67 Hectare, 875 accommodation units making up 3500 bedrooms with ensuites Howard Springs Accommodation Village was constructed to accommodate up to 3500 Fly In Fly Out employees to build the Itchys LNG facility at Bladin Point. During the COVID-19 pandemic, the federal government re-purposed the facility to aid the Australian and International Covid-19 response and became the Centre for National Resilience.
The Property Council believes it could now be utilised to house incoming skilled workers while looking for more permanent, long-term accommodation. This would allow the facility to be operated full-time, ensuring that all incoming migrants have a suitable and welcoming place to stay.
Recommendation Two | Improve accessibility to homeownership for skilled migrants
All Australian states are competing for talent. Ensuring skilled migrants have equal access to affordable housing in the NT enhances the Territory’s likelihood of being the preferred destination for these workers.
The Northern Territory is the only jurisdiction that does not impose the Foreign Buyer’s Surcharge (FBS). This is a Surcharge that we believe is not widely known to the broader investment market and gives the NT a stand-out advantage over other jurisdictions that enforce the FBS.
In other jurisdictions, FBS has acted as an unnecessary hurdle for skilled workers seeking to settle. While the FBS rule contains an exception that any surcharge paid on a property can be refunded if the person is no longer a “foreign person” on settlement (e.g. has permanent residence granted by then), in practice, sellers are generally unwilling to enter into a contract which is conditional on granting of residency.
The Property Council is eager to work with Territory Government to design a model that would best address the skill shortage crisis and make homeownership for skilled migrants wishing to settle in the NT more accessible, affordable and attractive.
Recommendation Three | Advocate to the federal government on measures to promote migration to NT
The Property Council believes the federal government could implement many measures to encourage migration to NT. We ask that Territory Government consider these measures and advocate to the federal government on behalf of the NT.
3.1.
Many international migrants currently live in Australia’s bigger cities, Melbourne and Sydney. Some are reaching the end of their visa and seeking permanent residency. The Territory government could work with the federal government to offer visa extensions to those seeking to stay longer in Australia if they move to the NT.
3.2.
The federal government’s Priority Migration, Skilled Occupation List, listed 44 occupations and was last updated in July 2021. Approximately six Priority Occupations relate to the property sector. Given that the list’s purpose is to identify careers that fill critical skills needed to support Australia’s economic recovery from Covid-19, the Territory government could advocate for it to be updated to include professions that will help address the current skilled worker shortage in the property industry.
3.3.
Due to its complexity and lengthy processing time, the existing visa application process is considered one of the major inhibitors to attracting skilled workers to Australia. The Territory government is well positioned to advocate to the federal government to review and streamline the existing visa process.
3.4.
To increase Australia’s attractiveness to skilled migrants looking for new opportunities, the Property Council believes that the cost of visas should be reduced. Skill-assessment fees alone can easily exceed $4,000, which, when combined with other required fees, would likely make a move to Australia financially unviable for many prospective migrants. The Territory Government could advocate for a temporary reduction of visa-related costs for skilled workers, incentivising Australia as a location to move to.
Recommendation Four | Expanded funding for talent attraction campaigns
In March 2022, the Territory government launched local, national and international advertising campaigns to encourage skilled workers from interstate and overseas to the Territory.
The Northern Territory Global Worker Attraction Campaign targeted skilled and semi-skilled workers to move to the NT. The campaign went live in NSW, VIC, SA, ACT, QLD, WA and Tas and internationally to New Zealand, London, Singapore, South Africa, Taiwan, Indonesia, Colombia, Brazil and Ireland.
The Territory Government has committed $12.8 million to grow a strong Territory workforce by attracting more workers as part of the workforce boost package. However, the Property Council believes more could be done to attract international and interstate skilled workers, including housing affordability and liveability.
Recommendation Five | Advocate to the federal government on the new Developing the North Framework
The Property Council believes the federal government could implement many measures to improve the Developing the North Policy. These changes would increase both economic activity and workforce attraction in North Australia. We ask that the Territory government consider these measures and advocate to the federal government on behalf of the NT.
5.1
If a Special Economic Zone (SEZ) is considered for North Australia, introducing a SEZ or multiple localised tailored SEZ(s) would provide an overarching framework to achieve the development of the North.
5.2
Areas that a SEZ could examine include, but are not limited to:
• Reduction on the Backpacker Tax (currently 15% flat tax rate on income under $45k);
• Removal of Fringe Benefits Tax for Housing of an employee;
• Changes to the Australian Significant Investor Visa
• Increase in the Diesel Rebate;
• Introduction of a new North Australia Zone Allowance;
• Asset Write-Off Incentives for Green Power Generation and Storage;
• Increased incentives for Renewable Energy Credits (RECs);
Recommendation Six | Introduce a Special Education Migration ZONE (SEMZ)
Due to the National Security issues and the importance of the NT to the economic future of Australia, the Property Council recommends that the Northern Territory be made a “Special Education Migration Zone (SEMZ)”. That would mean that people studying here in the NT should be given six-year post-study rights. At the end of this period, they should be given a guaranteed path to permanent residence if they are working in the field that they studied with the backing of an employee.
Information from Charles Darwin University outlines that if the NT was a SEM Zone, the number of students (migration population) could be between 10,00 and 12,000 in five years, which is higher than the predicted growth of international student forecasts.
Media contact: Ruth Palmer | M 0450 428 314 | E [email protected]