Massive Change: Australia Discontinues Pathway to PR for Accountants

Overview of the Decision

The Accounting Professional Year Program (Accounting PYP) will be discontinued following a significant decline in enrolments and lack of government action to modernize the program. Key accounting bodies have formally notified the government of their decision to cease the program.

Declining Enrolments and Financial Sustainability

Since its peak in 2018 with 7,122 participants, enrolments in the program have drastically dropped to just 340 in 2024. The program has become financially unsustainable, leading to the decision to discontinue it.

Lack of Government Response and Policy Uncertainty

The accounting bodies have made multiple attempts to engage with the government to revise and modernize the program. Their submission to the Department of Home Affairs in December 2023 included eight key recommendations to enhance the program’s structure, including:

• Shorter, more flexible delivery options

• Alternative modes for formal learning and work experience

However, despite continuous efforts and follow-ups with various government departments, no concrete action was taken. The government deferred consideration of the program pending a broader review of the migration points test, with no clear timeline for resolution.

Timeline for Program Closure

• New enrolments will cease on March 5, 2025

• All program activities will conclude by May 1, 2026

Impact on the Accounting Profession

The decision to end the program comes at a time when the accounting profession faces increasing recruitment challenges. Research indicates that accounting roles in Australia are expected to grow from 201,600 in May 2024 to 234,000 by May 2034, requiring an additional 32,400 accountants over the next decade.

Future Initiatives to Address Talent Shortages

In response to these challenges, efforts are being made to attract new talent, including:

• Direct engagement with university and TAFE students, educators, and the business community

• Developing innovative pathways into the accounting profession for both entry-level and experienced professionals

Call for Government Engagement

The accounting bodies urge the government to collaborate on long-term strategies to address the talent gap. Policy decisions, including potential caps on international student numbers, further contribute to industry uncertainty and must be reconsidered to support the profession and the broader economy.

Background on the Accounting PYP

The Accounting Professional Year Program, launched in 2008, was a government-approved initiative designed to help international students gain professional work experience in Australia. The program offered:

• 44 weeks of structured training, including 32 weeks of classroom learning and a 12-week internship

• Pathway to permanent residency, offering additional points under the General Skilled Migration (GSM) points test

Over 48,500 participants have completed the program, benefiting from professional experience and career opportunities in Australia. However, with its discontinuation, alternative pathways will need to be explored to support aspiring accountants and meet workforce demands.