Western Australia’s construction and trades sectors are staring down a sharp workforce squeeze after the Commonwealth proposed cutting the state’s skilled migration allocation by 30%, dropping it from 5,000 to 3,400 places for the 2025-26 program year.

The reduction to WA’s State Nominated Migration Program has already closed the program to new applicants as of 1 July 2025, with remaining places used solely to clear a backlog of 2024-25 applications. Industry groups including the Chamber of Commerce and Industry WA are now pressing Premier Roger Cook to go further than his existing letter to Canberra and seek a full exemption for the state.

The timing is brutal. WA’s 2026-27 State Budget committed $13.1 million to extend construction workforce migration initiatives, including $11 million to extend the Construction Visa Subsidy Program and related incentives. That funding is designed to bring 1,100 additional skilled migrants into building and construction from 1 July 2026, alongside $4.7 billion in new housing investment. Fewer migration places make both targets harder to hit.

Cook has publicly backed the push for more workers. “My government is particularly focused on increasing our construction workforce to speed up the delivery of homes, and this agreement with the Commonwealth sends a signal to overseas markets that WA is open for business,” he said. Business groups warn the federal cuts run directly against that position, with Absolute Immigration flagging downstream risk to construction, healthcare, aged care, defence and trades if the reduction proceeds.

Specific projects at risk include the Henderson shipyard and the Perth Metronet expansion, where labour shortfalls could push employers toward costlier visa alternatives and delay delivery, according to reporting confirmed by VisaHQ News. At the national level, Master Builders Australia chief executive Denita Wawn has been direct: “Our communities need more homes, infrastructure, schools, and hospitals.” MBA has called for 500,000 skilled migrants nationally to meet the federal government’s 1.2 million homes target.

For subcontractors, sole traders and builders in WA, a tighter migration pool means upward pressure on labour costs and longer waits to fill skilled roles. The Cook Government secured 10,000 migration places for 2024-25 under a deal with Canberra, making the proposed cut to 3,400 a stark reversal. Whether industry pressure translates into a federal exemption will shape WA’s construction pipeline for years to come.

Frequently asked questions

How many skilled migration places does WA have for 2025-26?

WA’s State Nominated Migration Program allocation has been cut to 3,400 places for 2025-26, down from 5,000 the previous year. The program closed to new applicants on 1 July 2025, with remaining places used to clear the existing backlog.

Which projects in WA could be delayed by the migration cuts?

The Henderson shipyard and the Perth Metronet expansion have both been flagged as at risk, with labour shortfalls potentially pushing employers toward costlier visa alternatives and delaying delivery timelines.

What is the Cook Government spending to boost construction workers?

WA’s 2026-27 State Budget committed $13.1 million to extend construction workforce migration initiatives, including $11 million for the Construction Visa Subsidy Program, aimed at bringing 1,100 additional skilled migrants into the sector from 1 July 2026.

Sourced from The West Australian, VisaHQ News, Absolute Immigration, Mapien. Original article.