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Does Australia need a targeted migration strategy to build productivity?

Australia clearly needs to increase competition and thereby its productivity – if not, we are going to be left behind, and our group’s focus will continue to advocate for an immigration policy that helps Australia attract and retain the best talent in the world, writes Farhan Rehman.

September 05, 2025 By Farhan Rehman
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Having skilled and talented individuals means everything for business growth, and all employers consider carefully before they hire. We do not just look to fill a gap; we look to find people who bring experience to fix the gaps we see. With the right skills for the job, the people we hire can increase both sales and productivity.

With reports of Australia’s productivity stagnating, or on the verge of dropping further, it is worth asking: do we as a country have a well-thought-out strategy to bring and foster the skills we need to improve our national productivity? It does not seem that way.

 
 

In Australia, productivity is measured by the ratio of output to inputs. The Australian Bureau of Statistics (ABS) produces measures of output and inputs for different industries, sectors, and the overall economy. These measures are then combined to calculate productivity, typically expressed as output per unit of input.

ABS productivity figures show that in 2022–23, the 20-year average annual growth rate was 0.9 per cent, falling from 1.2 per cent in 2021–22 and 1.8 per cent in 2003–04.

In December 2024, the government tasked the Productivity Commission with five new inquiries, focused on identifying ways to materially boost Australia’s productivity in relation to each of the five pillars of the government’s productivity agenda.

Being an immigration lawyer, with our parent office in the United Arab Emirates (UAE), my passion is to bring skills to Australia to improve our nation’s ability to innovate in the private sector. With that in mind, building a skilled and adaptable workforce to increase productivity in Australia will require an immigration program that focuses on entrepreneurship, start-ups, and innovation.

Minister Clare O’Neil scrapped the Business Innovation and Investment (Provisional) 188 Visa in July last year. Since then, Australia has not had a specific visa program that can expressly attract talented individuals.

While the rebranded National Innovation Visa (858) was launched last year, the 858 criteria are for a select few that very few entrepreneurs and innovators around the world would meet. As such, it seems Australia is missing out on its opportunity to build a skilled and adaptable workforce.

Australia has the General Skilled Migration (GSM) program, which attracts skilled migrants by invitation, but there is very little government engagement with those migrants who arrive under GSM to ensure their skills can be appropriately utilised.

As one contrasting example, the UAE has free trade zones, established to promote economic activity, innovation, and international investment. There are approximately 46 free zones scattered throughout the country. With no import tariffs, and tax incentives, UAE free zones attract businesses across industries, particularly those looking for regional headquarters or expansion bases.

The free trade zones are empowered in a way where the company and visa renewal process occur through the free trade zone, keeping the business ecosystems engaged, functional, and aligned to that area.

Australia could consider a policy where it keeps the general skilled migration policy but invites entrepreneurs and innovators to work in specific economic zones: in the states, specific regional growth centres, and existing special activation precincts.

With the Federal Treasurer renewing conversations around productivity post the elections, it is now very important that a new immigration strategy runs alongside the government’s five-pillar productivity growth agenda. That strategy should include a new visa subclass that focuses on innovation and entrepreneurship.

Australia clearly needs to increase competition and thereby its productivity – if not, we are going to be left behind, and our group’s focus will continue to advocate for an immigration policy that helps Australia attract and retain the best talent in the world.

Farhan Rehman is the principal lawyer at Rehman Sheriff Group.