The Australian Retailers Association (ARA) and National Retail Association (NRA) have voiced concern over the Federal Opposition's proposal to cap international students and raise visa costs, which would significantly impact the retail workforce.
International students are a vital part of the $430 billion retail sector said ARA Chief Industry Affairs Officer Fleur Brown - not only as workers, but also as consumers who contribute significantly to the broader economy, including tourism and hospitality.
"International students play a critical role in supporting part-time and casual roles, which are the backbone of dynamic trading environments like retail stores and restaurants," she said.
"Retail job vacancies remain high at 25,600 nationally, and retailers across the country are crying out for staff. This has a flow-on effect to all Australians in providing great service to customers. We should be sending positive signals to this essential workforce cohort - knowing it can take years to build a pipeline of students willing to travel to our shores," she said.
"The ARA has consistently advocated for increased support for international student employment as a key lever in solving the retail labour crisis.
"Curtailing the ability of international students to work in Australia would undermine years of effort to make our country a destination of choice for education and employment."
NRA Interim CEO Lindsay Carroll said the proposal risks reversing the progress the sector has made attracting international students back since the pandemic.
"We understand the need for a balanced migration system, but limiting international student access will have ripple effects across the retail and hospitality workforce at a time when we simply can't afford it," Ms Carroll said.
"Importantly, all Australians will be impacted. Skills shortages in the sector make it challenging for retailers to keep delivering the high-standard of service they aim to provide to their customers.
"Once we turn away international students, the recovery isn't quick. Rebuilding those pipelines takes years, and in the meantime, our shops, restaurants and cafes suffer.
"We urge policymakers to consider the full economic impact of these proposals and to work collaboratively with industry to find balanced solutions that address concerns without compromising Australia's recovery and growth," said Ms Carroll.
