What the US H-1B Visa Hike Means for Australia’s Workforce and Economy

In my last article, I explored the impact of the US decision to raise the cost of new H-1B visas to $100,000 per application. For US businesses, it signals a push to bring more work back onshore, reduce reliance on migrant workers, and reshape industries like technology, finance, and engineering.

But these decisions don’t just stay within US borders. For Australia, a country that already depends on skilled migration and offshore delivery models, the ripple effects are very real.

Australia as an alternative destination?

One immediate consequence is that the US looks less attractive for skilled workers. If the cost of sponsorship there is prohibitive, talent will look elsewhere and Australia could be a prime beneficiary.

Our skilled migration pathways, while not without cost and complexity, are nowhere near the $100k threshold. That makes Australia more competitive as a destination, particularly for professionals in IT, engineering, and healthcare who might previously have targeted the US first.

For employers, this creates an opportunity to position Australia as a destination of choice: stable, affordable, and with strong lifestyle appeal.

Offshoring and Regional Competition

The US visa change will accelerate offshoring. More work will be pushed to countries like India, the Philippines, Vietnam, and Eastern Europe: markets that already have deep pools of technical talent at scale.

Australia is unlikely to compete as a delivery hub in that sense. Our cost base is simply too high to attract high-volume work that could just as easily be done in lower-cost countries.

Where we can play a role is as a regional governance hub:

• Managing relationships with offshore partners.

• Providing oversight for Asia-Pacific delivery.

• Offering specialist or higher-value services that require cultural proximity, regulatory alignment, or client confidence.

This means our opportunity is not about becoming the “next India” — it’s about positioning ourselves as the place where global work is coordinated, quality is assured, and strategy connects to delivery.

Pressure on Australian Employers

For employers here, the challenge is twofold:

• Increased competition for offshore skills. If US firms are drawing heavily on India and the Philippines, contract rates will rise, making it harder for Australian organisations to secure the same resources.

• Retention risks. Skilled migrants already in Australia may find themselves courted by US firms offering remote contracts, even if relocation is off the table.

At the same time, there is a brain gain opportunity.

Skilled workers deterred by the US could redirect to Australia. If we can streamline visa pathways and market ourselves well, Australia could emerge as a stronger magnet for talent.

A Strategic Opportunity for Australia

For Australia, this moment is both a challenge and an opportunity. The US may be trying to bring work back onshore, but in doing so it risks pushing talent and opportunity elsewhere. If we act decisively, Australia could be one of the winners.

1. Streamlined Migration Pathways

Our visa system has always been a balancing act in supporting economic growth while managing social and political considerations. But the reality is that businesses here continue to face critical skill shortages, and the competition for talent is only intensifying.

Streamlining pathways for high-demand skills, reducing red tape for employers, and speeding up processing times would make a tangible difference. This isn’t about opening the floodgates; it’s about creating a competitive edge. If the US makes it harder to get in, we should be making it easier — especially in areas of high demand.

2. Positioning Australia’s Lifestyle and Stability

Australia’s competitive advantage isn’t just economic, it’s social. Compared to the US, we offer stability, safety, and a high quality of life. For skilled professionals making career and family decisions, that matters. Employers and government should be highlighting Australia as a place where people can both work and live well: a country with strong education, healthcare, and cultural diversity. If marketed properly, this could turn Australia into the destination of choice for skilled workers who are discouraged by US policy shifts.

3. Balancing Offshore and Domestic Strategies

At the same time, we can’t ignore the offshore dimension. The US will be drawing heavily on the same Asia-Pacific talent pools that Australian businesses rely on, particularly in IT, engineering, and back-office services. That increased demand will drive up costs. To remain competitive, Australian organisations need to find the right balance:

• Investing in domestic training and workforce pipelines where possible.

• Building long-term offshore partnerships that go beyond transactional contracts.

• Leveraging migration for roles that truly need to be here, onshore, to support growth.

The opportunity is to build a workforce model that is flexible and sustainable: one that protects us from the volatility of global policy changes while still keeping Australia globally competitive.

What You Can Do Now

For Australian employers, the shifts in US policy aren’t just headlines on the other side of the world, they’re changes that will shape your access to talent and the cost of offshore delivery in the months and years ahead.

Here are three practical steps you can take right now:

1. Review your offshore arrangements. If you’re already working with partners in India, the Philippines, or Eastern Europe, expect increased competition for their services. Lock in strong relationships, secure your best people, and make sure your agreements are future-proofed. For tools and frameworks, see my Offshoring Book.

2. Revisit your workforce planning. Look at where your most critical gaps will be in the next 12–24 months. Consider which roles can realistically be filled through migration, which can be trained locally, and which may need to be offshored. My Workforce Strategy and Resourcing Services are designed to help employers align short-term needs with long-term planning.

3. Position your organisation for talent. Skilled professionals will be looking at Australia with fresh eyes. Be ready to tell your story: why your organisation, why your industry, and why Australia. If you’d like guidance on employer branding and retention strategies, reach out.

These are not small shifts. Global labour markets are being reshaped in real time, and Australia is very much part of that picture.

The question is whether we respond with short-term fixes, or with a strategy that secures capability for the long term.

The US H-1B fee hike is designed to keep work onshore but in practice, it will send more of it offshore. For Australia, that means a tougher fight for the same talent, but also an opportunity to present ourselves as a more accessible, attractive option for skilled workers and international researchers.

The real question for employers here is whether we adapt quickly enough. Workforce strategies can’t be static — they need to account for global shifts like this.

👉 To see how these changes are reshaping US hiring strategies and industry impacts, read my article: The $100,000 H-1B Visa Fee: What It Means for US Business and Offshoring.

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Jude Mahony is a global workforce strategist and author, specialising in resourcing, offshoring models, and building sustainable workforce strategies