Industry Sentiment Analysis - Your Voice

As of mid-2025, the Australian hairdressing, beauty, and barbering industry - particularly in regional areas and small business settings - continues to face compounding workforce and economic challenges.

The following 12 issues highlight the most pressing concerns and present clear opportunities for reform, investment, and policy alignment:

 1. Rising TSMIT (Temporary Skilled Migration Income Threshold)
The TSMIT has risen from $55,000 to $73,150, with a further proposed increase to $76,000 in 2025.This creates a wage gap between sponsored workers and local award-wage employees (typically of $58,000), which is unsustainable for most small businesses.

It places disproportionate pressure on regional salons servicing lower socio-economic (low-SES) communities.
 
2. Regional Staffing Crisis
Skills shortages are most severe in regional and remote areas.
Businesses report little to no response to job advertisements.
Migration remains essential for basic service delivery, but costs are increasingly prohibitive for small operators.
 
3. Wage Disparity Causing Workplace Tension
Sponsored workers often earn significantly more than Australian casual and full-time staff. This inequity causes morale issues, workplace friction, and undermines team cohesion.
 
4. Limited Capacity to Train Apprentices
With wages and on-costs consuming up to 70% of revenue, many salons cannot afford to take on apprentices. Despite a strong willingness to train, the economic model doesn’t support it.

A shift towards independent and solo operators further reduces opportunities for apprentices to gain real-world training.
 
5. Inconsistent State-Level Migration Support
DAMA (Designated Area Migration Agreements) include hairdressing in WA, NT, QLD, and SA, but not all jurisdictions. Lack of national consistency limits migration and workforce planning options.
 
6. Payroll Tax Disincentives
Payroll tax thresholds and structures penalise small business growth.
State-level inconsistencies make it hard to scale sustainably or incentivise employment.
 
7. Migration Loopholes and Workplace Tensions
Inconsistent visa and employment regulations create risk of exploitation and internal tension between local and sponsored staff.
The sector urgently needs greater clarity, stronger oversight, and alignment of wage expectations.
 
8. Apprenticeship Completion Rates Remain Low
Completion rates fell to 54.8% in 2023 (NCVER), and have seen no significant improvement in 2024. A national completion incentive is needed to address high dropout rates and secure a future talent pipeline.
 
9. Call for Flexible and Portable Training Pathways
Apprentices who change employers often lose their progress, delaying qualification and reducing motivation. Portable, modular qualifications would allow for flexibility and increase completion rates.
 
10. Hairdressing, Beauty & Barbering Remain on the CSOL.
As of the most recent government updates, Hairdresser (ANZSCO 391111) and Beauty Therapist (ANZSCO 411611) remain on the Core Skills Occupations List (CSOL). This ensures continued access to migration pathways like the Core Skills stream of the Skills in Demand (SID) visa and the Direct Entry stream of subclass 186. Ongoing inclusion is critical, particularly for rural and regional workforce sustainability.
 
11. Ban on Non-Compete Clauses Introduced in 2025 Federal Budget
The Australian Government has introduced a significant workplace reform in the 2025–26 Federal Budget, banning non-compete clauses for most employees earning under $175,000 per year.

This reform is designed to: Enhance job mobility, Promote fairer competition, and Encourage wage growth across industries.

While this change opens up new opportunities for employees previously restricted by such clauses, it also poses new challenges for employers, particularly in industries like hairdressing where client relationships often rest with the individual stylist rather than the business entity.

The Creative Skills Retail Council (CSRC) adopts a balanced view on this reform. We acknowledge the concerns of salon owners regarding client retention. However, we also believe this change presents an opportunity for businesses to shift focus - toward building strong workplace cultures, improving employee experience, and implementing smarter retention strategies such as staff development, recognition programs, and contractual alternatives. Ultimately, creating positive, growth-oriented workplaces will remain the most effective way to attract and retain talent.

The Creative Skills Retail Council (CSRC) advocates for policy settings that support small operators, protect emerging professionals, and drive long-term industry sustainability.

12. Instant Asset Write-Off Threshold 
The 2025–26 Federal Budget proposed to reduce the Instant Asset Write-Off (IAWO) threshold to $20,000, a significant drop from previous temporary higher limits.

Source: Industry Sentiment Analysis and References

References:
- Australian Government Department of Home Affairs – Skilled Migration Program and TSMIT: https://immi.homeaffairs.gov.au/what-we-do/skilled-migration-program/recent-changes

- NCVER (2023) – Apprentice and Trainee Completion Rates: https://www.ncver.edu.au/news-and-events/media-releases/overall-apprentice-and-trainee-completion-rates-down-in-2023

- Migration SA – South Australia DAMA Information: https://www.migration.sa.gov.au/local-businesses/designated-area-migration-agreement

- The Polyglot Group – Payroll Tax Across Australian States: https://www.thepolyglotgroup.com/blog/australian-payroll-taxes-to-know

- Davie Mach via LinkedIn – Payroll Tax Commentary: https://www.linkedin.com/posts/davie-mach_payroll-tax-is-one-of-the-most-hated-taxes-activity-7079647199504039937-dVTb

- ARA – Federal Election Priorities: https://www.retail.org.au/ara-federal-election-priorities