The move, announced in the federal budget, will see the planning level of the Migration Program reduced from 190,000 places to 160,000 for four years from 2019–20.
For the 2019–20 Migration Program, there will be 108,682 places in the skill stream, 47,732 places in the family stream, with a combined 3,586 places for child and special eligibility streams.
MYOB chief executive Tim Reed said that any move that would reduce the number of skilled immigrants could ultimately translate to poorer outcomes for the business community.
“The reduction in the cap on migration is something that is more likely to create a challenge [in the business environment],” Mr Reed said.
“Reducing the number of skilled migrants can reduce capacity for growth.”
Mr Reed said that, overall, the federal budget should inspire confidence for business.
“Looking [at the] big picture, I think getting the budget back in the black is good for small business and confidence. It gives a stable footing,” he said.
“It adds to the worry and the concern when there is a deficit.
“What is good for our clients is good for us… so a good [outcome] for small business is good.”
It’s important to note that while the government is touting it is “back in the black”, Australia, as it stands, remains in the red and will finish this financial year in deficit. The surplus forecast is for the 2019–20 financial year.
Jotham Lian is the news editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.
Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.