When the program that bridges the gap between education and employment faces extinction, the future of skilled migration in Australia seems uncertain. But there’s still hope if the right action is taken.

In a surprising and significant development, three of Australia's most prominent accounting bodies—CPA Australia, Chartered Accountants ANZ (CA ANZ), and the Institute of Public Accountants (IPA)—have collectively approached the Australian Government with the news of their intention to discontinue the Accounting Professional Year (PY) Program. This decision comes in the wake of a dramatic decline in program enrolments, which have plummeted from a robust 7,122 participants in 2018 to a mere 340 in 2024. The accounting bodies have cited the program's increasing financial unsustainability as the primary reason for its termination, despite its longstanding role as a cornerstone of the Australian migration system for international accounting graduates.

The announcement of the program's impending closure, which is set to be gradually phased out by 2026, has sent ripples of concern and uncertainty throughout the accounting profession and related industries. For over a decade, the PY Program has been instrumental in providing international students who have completed accounting degrees with invaluable Australian workplace experience, significantly enhancing their employability and facilitating their integration into the local job market.

The program's structure, which typically spans 44 weeks, has been designed to bridge the gap between academic knowledge and practical application in the Australian business environment. It has traditionally comprised three key components: an orientation to the Australian workplace, 32 weeks of coursework in business communication and job search skills, and a 12-week internship with an Australian organisation. The program has been a recognised pathway to permanent residency under the general skilled migration (GSM) for 485 visa holders, with successful completion earning participants 5 additional points under the GSM points test. This comprehensive approach has not only benefited the participants but has also contributed to the Australian economy by producing work-ready professionals familiar with local business practices.

However, the steady decline in enrolments over recent years has brought to light underlying issues within the program and the broader context of skilled migration in Australia. The accounting bodies have expressed growing frustration over what they perceive as a lack of government support and recognition for the program's importance. This sentiment is compounded by changing immigration policies and shifting labour market demands, which have collectively contributed to the program's dwindling popularity. The program has been significant since its commencement in 2008, with more than 48,500 participants having graduated and gained valuable professional work experience in Australia. 

The closure of the PY Program raises critical questions about the future of skilled migration and the accounting profession in Australia. It potentially creates a significant gap in the pathway for international accounting graduates seeking to establish careers in the country. This could have far-reaching implications for Australia's ability to attract and retain skilled professionals in the accounting and finance sectors, potentially leading to skills shortages in these crucial areas of the economy.

Furthermore, the program's discontinuation may impact Australia's competitiveness in the global education market, particularly in attracting international students pursuing accounting and related business degrees. The PY Program has long been a unique selling point for Australian universities, offering a clear path to professional development and potential migration. Its absence could lead prospective students to consider alternative destinations for their education and career advancement.

The Australian Government now faces the challenge of addressing this void in the skilled migration pathway. Possible responses could include developing alternative programs, revising immigration policies to accommodate affected graduates, or collaborating with industry bodies to create new initiatives that serve similar purposes to the PY Program.

As the 2026 phase-out date approaches, stakeholders across the education, accounting, and immigration sectors will be closely watching for government responses and industry adaptations. The coming years will likely see intense discussions and potential policy shifts as Australia grapples with maintaining its appeal to international talent while ensuring the sustainability of its professional development programs.

The termination of the Accounting Professional Year Program marks a significant turning point in Australia's approach to skilled migration and professional development in the accounting sector. As the situation unfolds, it will undoubtedly spark debates about the balance between immigration, education, and workforce needs in an increasingly globalised and competitive international landscape. In this article, we will examine the factors that led to the discontinuation of the Accounting Professional Year Program, including its dramatic enrolment decline from 7,122 participants in 2018 to just 340 in 2024, the accounting bodies' frustrated attempts to modernise the program, and the government's delayed response to their proposals. We'll explore the implications of this closure for Australia's accounting profession, which faces a projected shortage of 32,400 accountants over the next decade, and consider how the professional year model could have been expanded to address skills shortages across multiple industries. 

The Decline of the Accounting Professional Year Program

The Accounting Professional Year (PY) Program was introduced in Australia in 2008 as a strategic initiative to address the growing skills shortages in the accounting sector. This innovative program was designed to provide international graduates with a robust platform to develop work readiness and industry-specific skills, bridging the gap between academic knowledge and professional competency.

The program's structure was carefully crafted to combine intensive classroom learning with practical internships, offering participants a holistic approach to professional development. Through this dual-pronged approach, international graduates could gain hands-on experience in Australian workplaces while simultaneously honing their theoretical understanding of local accounting practices, taxation laws, and business ethics.

Initially, the Accounting PY Program was met with enthusiasm from both students and employers. It offered a clear pathway for international graduates to enhance their employability and potentially qualify for permanent residency in Australia. For employers, the program provided access to a pool of work-ready graduates with a solid understanding of Australian business practices.

However, as the years progressed, the landscape of the accounting profession began to shift. Technological advancements, changing market demands, and evolving immigration policies started to impact the program's relevance. By the early 2020s, demand for the Accounting PY Program had begun to wane, leading to a significant reduction in enrollment numbers.

The declining interest in the program raised concerns among key stakeholders in the accounting profession. The major accounting bodies - CPA Australia, Chartered Accountants Australia and New Zealand (CA ANZ), and the Institute of Public Accountants (IPA) - identified several factors contributing to this downturn. Chief among these was the government's perceived lack of responsiveness to requests for modernising the program.

In an effort to revitalise the Accounting PY Program and increase its appeal to both students and employers, the accounting bodies took proactive steps. In December 2023, they collaboratively developed and submitted eight key recommendations to the Department of Home Affairs. These recommendations were the result of extensive consultations with industry partners, educational institutions, and current and former program participants.

The proposed changes were wide-ranging and aimed at making the program more flexible and relevant to the current job market. Key suggestions included:

1. Permitting the professional bodies to introduce PY entry requirements that align with industry expectations, ensuring international graduates commence the PY within 24 months immediately following university graduation

2. Mitigating impacts of current post-study work settings to align with employer expectations

3. Amending Schedule 6D of the Migration Regulations 1994 to remove the expectation that PY programs run for a period of at least 12 months

4. Permitting more flexible arrangements, allowing for a shortened duration of the program

5. Permitting the introduction or approval of alternative modes of delivering the formal learning and work experience components of the PY, as well as opt-in pre-employment and transition services

6. Extending the PY program to overseas graduates of IT, accounting and engineering programs, where there are grounds for confidence in their technical competencies

7. Offering a PY to other recent migrants who have not worked in Australia

8. Examining the merits of introducing PY programs in other professions facing skill shortages

The accounting bodies were optimistic that these changes would breathe new life into the program, making it more attractive to international students and more valuable to potential employers.

However, despite receiving formal recognition of their proposals in February 2025, the government's response fell short of addressing the urgent issues facing the program. Instead of approving the proposed changes, the Department of Home Affairs deferred the matter, citing the need for a broader review of Australia's migration policies.

This delay left the accounting profession in a state of limbo. The lack of immediate action meant that the Accounting PY Program continued to operate under its existing framework, which was increasingly viewed as outdated and misaligned with current industry needs.

The government's hesitation to implement changes has had far-reaching consequences. Educational institutions offering the program have reported further declines in enrollment, with some considering discontinuing the program altogether. Employers, who once valued the program as a source of work-ready graduates, have begun to look elsewhere for talent, sometimes turning to offshore recruitment to fill skills gaps.

Moreover, the situation has sparked a broader debate about Australia's approach to skilled migration and professional development programs for international graduates. Critics argue that the government's slow response to industry recommendations reflects a disconnect between immigration policies and the real-time needs of the Australian economy.

As the accounting profession continues to evolve rapidly, with increasing emphasis on technology, data analysis, and strategic decision-making, the future of the Accounting PY Program remains uncertain. Stakeholders across the industry are calling for urgent action to prevent further erosion of this once-valuable pathway for international accounting graduates.

The coming months will be crucial in determining whether the Accounting PY Program can be revitalised to meet the changing needs of the profession or whether alternative models will need to be developed to address the ongoing skills shortages in the accounting sector.

The Cost of Inaction: A Looming Crisis for Australia's Accounting Sector

The decision to shut down the PY Program is a significant blow to Australia’s accounting profession. The country is already facing a shortage of qualified accountants, with an estimated 32,400 additional accountants needed within the next decade to meet the growing demand. This issue is exacerbated by the country’s immigration policies, which are increasingly restrictive and uncertain.

Attracting skilled professionals to fill the gaps in Australia’s accounting workforce has been a constant challenge. While international graduates bring vital expertise and qualifications to the table, they often struggle to demonstrate their readiness for the Australian workplace. This is where the PY Program has played a pivotal role. It allowed graduates to gain practical, on-the-job experience that enhanced their employment prospects and integrated them into the Australian work culture.

Now that the program is on the brink of being discontinued, the profession is left with a gaping hole in its efforts to solve the skills shortage. The government’s reluctance to modernise the program, coupled with its ambiguous stance on immigration, only worsens the situation. This decision could have long-term consequences not only for the accounting industry but also for the broader Australian economy, which relies heavily on skilled migrants to fill vital roles across various sectors.

The Government's Missed Opportunity

As Australia faces increasing demand for skilled workers in accounting and other sectors, the government’s failure to invest in the PY Program’s future is perplexing. The program was a vital bridge for international students who were qualified but needed Australian experience to succeed. It was a structured pathway that facilitated a smoother transition from university to employment, benefiting both the graduates and Australian employers who were desperate for skilled talent.

Rather than letting the program wither, the smarter approach would have been to embrace its potential and modernise it to cater to the evolving needs of the workforce. By extending the program’s reach beyond accounting to other industries in need, such as engineering, IT, and healthcare, the government could have provided a solution to the broader skills shortage while also bolstering its skilled migration pathways.

The opportunity to reimagine the PY Program as a more flexible, inclusive, and accessible initiative is evident. If the government had taken action to engage with industry bodies and adapt the program for the modern workforce, it could have helped solve Australia’s skills crisis while continuing to support international graduates and businesses.

The Bigger Picture: Extending the Model Beyond Accounting

While the demise of the Accounting PY Program is a blow to the sector, it highlights a larger issue that needs to be addressed: Australia’s skills mismatch and its underutilisation of the professional year model. The professional year model, which has proven successful in addressing the skills gap in accounting, could be adapted for a wider range of industries facing workforce shortages.

From engineering to IT to healthcare, Australia’s labour market is crying out for qualified professionals. Yet, many international graduates are not able to find suitable employment opportunities, as they lack the local work experience required by employers. The professional year program could be expanded and modernised to serve as a tool for easing this transition, benefiting a broader pool of skilled migrants.

Moreover, with Australia’s tightening immigration policies, the government has an opportunity to rethink how it supports and retains international talent. Building upon the professional year program could provide a strategic solution to address the nation’s skill shortages while also offering a smoother pathway to permanent residency for skilled migrants who contribute to the economy.

A Call for Action: What Needs to Happen Next?

The cessation of the Accounting PY Program signals a failure on the part of the government to address the pressing issues facing Australia’s workforce and skilled migration pathways. As the accounting sector grapples with an ongoing shortage of qualified professionals, the broader question remains: How can Australia better support its skilled migration programs to ensure they meet the needs of both employers and international graduates?

There is still time to act. The government must engage with industry bodies to modernise the professional year model and extend its reach to other sectors in need of skilled talent. By doing so, Australia can develop a more flexible, adaptive workforce capable of meeting the demands of the future.

For now, the accounting profession must look for alternative ways to tackle the skills shortage, including directly engaging with universities, TAFEs, and employers to promote the profession. It’s clear that the industry is committed to finding solutions. But without government action, the challenges facing Australia’s workforce will only grow more severe.

FAQs

Q1: Why is the Accounting Professional Year Program being discontinued?

The program has become financially unsustainable due to a dramatic decline in enrolments, falling from 7,122 participants in 2018 to just 340 in 2024. Despite the accounting bodies' efforts to engage with the government to modernise the program, including submitting eight key recommendations in December 2023, the government's delayed response in February 2025 only deferred consideration until after completing its review of the migration points test.

Q2: When will the program end?

New enrolments will cease from March 5, 2025, and all program activities will conclude no later than May 1, 2026. This phased approach allows current participants to complete their program.

Q3: What changes did the accounting bodies propose to save the program?

The accounting bodies proposed eight key recommendations to modernise the program, including allowing more flexible delivery over a shorter duration and permitting alternative modes for delivering the formal learning and work experience components. These changes aimed to make the program more accessible and relevant to today's workplace needs while maintaining its quality and integrity.

Q4: How will this affect Australia's accounting workforce?

The discontinuation comes at a critical time when Australia faces significant accounting skills shortages. Research by Victoria University for Jobs and Skills Australia projects that accounting roles will increase from 201,600 in May 2024 to 234,000 by May 2034, requiring an additional 32,400 accountants over the next decade. The program's closure removes an important pathway for developing work-ready accounting professionals.

Q5: Are there other Professional Year Programs still operating in Australia?

Yes, Professional Year Programs in Engineering and IT are still operating. These programs continue to provide international graduates in these fields with Australian workplace experience and a pathway to permanent residency. The accounting program's discontinuation is specific to the accounting profession and doesn't affect these other programs.