Skilled migration mooted to address accountant shortage
Amid concerns about the continuing decline in financial adviser numbers, major accounting group CPA Australia has pointed to a significant shortfall in accountant numbers and the need for skilled migration.
In a submission to the Parliamentary Joint Committee on Migration, CPA Australia has pointed to the need for skilled migrants to help address a domestic accounting pipeline which is falling short.
It said Australia will need an average net increase of approximately 4000 accountants and auditors every year over the next decade to meet forecast demand.
“The pipeline of domestic accounting graduates from the higher education system is falling well short of what is required,” the CPA Australia submission said.
The submission said that within the accounting profession, the need for skilled migrants is pronounced citing modelling by Victoria University for Jobs and Skills Australia indicates Australia will require a:
- net increase of 17,700 accountants and 2,600 auditors, company secretaires and corporate treasurers from May 2025 to May 2030
- net increase of 35,000 accountants and 5,100 auditors, company secretaires and corporate treasurers between May 2025 and May 2035.
The submission also said Australia’s higher education system is not producing enough accounting graduates to meet projected workforce needs.
CPA Australia’s preliminary analysis of the 2024 higher education data from the Department of Education shows:
- Domestic students that graduated from an accounting course 1,528
- International students that graduated from an accounting course 5,492
- TOTAL 7,020
“Most international accounting students return to their home country after graduation. CPA Australia estimates that approximately 70% of international students leave Australia after completing their qualification.
“On this basis, we estimate that only around 3,000 to 3,500 accounting graduates were available to enter the Australian accounting workforce in 2025, well below the number required to meet net demand,” the submission said.
“This shortage is compounded by significant attrition from the profession. Oxford Economics Australia on behalf of the FSO estimates a 21.1% attrition rate in accounting between 2024 and 2030 due to retirements, career changes and moving overseas.
“The pipeline of new students entering accounting programs is also insufficient when considering non-completion rates, course switching, and the high proportion of international graduates who do not remain in Australia.
In 2024, the number of accounting commencements was:
- Domestic students 2,730
- International students 9,139
- TOTAL 11,869
You would think accountants were smarter… Skilled migration under this current regime is a furphy. The more likely outcome is sub par accountants (not all) who create a tsunami of compliance mistakes and provide poor advice for clientele.