Date issued: 27 November 2007
Position
CPA Australia advocates that a range of solutions be developed in order to solve the skills shortage of accountants. A reliance on a single 'answer' will not address the wide ranging issues that have been identified.
CPA Australia is committed to working with the government, employers, higher education providers and recruitment firms to increase the number of high quality accountants entering the profession and to address the increasing retention concerns within our profession.
Action
CPA Australia wrote to the Federal Government requesting further discussion about the higher education funding changes announced in the 2007 Federal Budget.
While we welcomed the increased allocations of HECS-funded places for domestic students and noted the allocation has increased the availability of Commonwealth supported places in Victoria, New South Wales and Western Australia, we also expressed our concerns that no extra funding had been earmarked for undergraduate accounting, commerce or economics degrees; and noted the reduction in funding for these courses and the move of accounting, commerce and economics into a higher student contribution band.
CPA Australia is supportive of moves by the Federal Government to increase the level of english competency required for general skilled migration (GSM) visas and for more emphasis to be placed on work experience in the GSM Points test.
CPA Australia is working collaboratively with other Australian accounting professional bodies to define agreed principles for the development and implementation of a ‘professional year’ for the accounting profession.
The option for migration points to be awarded after a recognised 'professional year' is completed was announced by the Department of Immigration and Citizenship (DIAC) this year.
The ‘professional year’ is seen as an avenue for enhancing the employability skills of qualified accountants seeking permanent residency in Australia. The skilled migration program is one of the answers to the skills shortage.
In 2006, CPA Australia's mature age employment project examined the viability of retaining mature age accountants in the workforce to meet the demand for skilled accounting professionals. The board has approved the national roll-out of this project, delivery is anticipated in 2008.
CPA Australia is interested in exploring partnerships that enable employers to effectively recruit outside their traditional pathways. In 2006 - 07, CPA Australia piloted a career transition program aimed at assisting Associate members who had migrated as skilled professionals to gain experience in the Australian workplace environment. CPA Australia is exploring the possibilities of expanding this program in the future, responding to membership and regional requirements.
Rationale
There is a continuing gap between the supply of domestic accounting graduates and employer demand in Australia. CPA Australia believes that as the demand for qualified accountants grows, so too should the growth in domestic accounting training in higher education.
We call on the government to commit to increase the number of Commonwealth supported accounting places when requested by higher education providers.
Employers have also indicated that the 'leakage' of qualified and experienced accountants from the profession is affecting the supply of accountants. CPA Australia believes that retaining existing experienced accountants is key to addressing the skill shortage in our profession. Employers who are experiencing difficulties recruiting and retaining staff will need to adapt to the changed environment.
CPA Australia continues to work in partnership with employers and recruitment firms to disseminate best practice recruitment and staff management policies.
Research conducted by TNS social research on behalf of the Department of Employment and Workplace Relations indicates that more flexible working conditions, job re-design and the development of more interesting and rewarding career pathways could reduce the numbers of those who seek alternative employment.
Incentives also need to be developed to encourage accountants who are no longer working in their skilled profession to return to employment in our industry. For example, mature age workers can return to employment on a flexible basis.
Up skilling in recent changes to law, international accounting standards and perhaps in some cases, enhancement of their technological expertise, may be required.
Given that an ongoing skills shortage will continue to have an detrimental impact on the ability of business to grow and respond to changing opportunities and compliance requirements, CPA Australia believes that urgent and ongoing action is required to address these issues.