Proposed changes to the skilled working visa will not address the bigger problem of how to fill the shortage of skilled tradespeople available to build new homes and apartments, according to HIA. 

Labor announced on Tuesday morning that, if elected, it would tighten the temporary skilled migration visa scheme, which was brought in by the government to replace the scrapped 457 visa.

The plan involves stricter rules around businesses having to prove they have tried to fill the job with an Australian worker, a higher wage threshold for the skilled visa and a new test to ensure that the use of a visa will also help to train local workers.

But HIA Manager Director Graham Wolfe said the focus of any reforms should be on creating a new visa category for skilled worker that is not bound to an employer but can operate as a trade contractor independent of a single employer. 

"The housing industry is more vulnerable to skill shortages than many other industry sectors due to an ageing labour force, the physical nature of work, the ongoing demand for new housing and the often cyclical nature of activity," he said.

"The current visa models simply don’t suit the housing industry’s long-accepted approach to doing business which relies heavily on the efficient and affordable model of independent contracting." 

Labor's announcement comes after a senate inquiry was set up at the end of last year to into the effectiveness of the current temporary skilled visa system in targeting genuine skills shortages, the findings of which were released last week. 

As one of the bodies to make a submission to the inquiry, HIA Executive Director Skills and Industry Development Harley Dale told WILLIAMS MEDIA they would welcome any opportunity to engage with either political party regarding domestic skills and training.

"We recognise there is a justifiable place for overseas labour plugging gaps from time to time and our view is that Labor is setting the bar too high in terms of allowing businesses and sub-contractors to source that foreign labour if there is a genuine need," he said.

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