NEW FINANCIAL CRISIS LOOMS

ONCE considered a relatively safe career choice, the domestic accounting sector is seemingly in crisis mode, with research indicating that for each Australian studying accounting almost three times as many foreign students are taking to the profession at institutions around the country.

A recent study by the Department of Education, Department of Employment, and Graduate Careers Australia concluded there were now 2.5 foreigners studying accounting at Australian institutions, and that the numbers of local students entering the profession has fallen by 20 per cent between 2001 and 2012.

This is offset by the numbers of international students completing undergraduate accounting degrees, which has risen by 500 per cent over the same period.

And while talented, well-trained graduates will inevitably find work, the trend is a worrying one according to Matthew Henley, an associate with one of NSW’s leading private accounting firms, Alan McGillivray and Associates.

According to Mr Henley, feedback from professional accounting bodies and the big four firms here in Australia (Deloitte, KPMG, PricewaterhouseCoopers and EY) has prompted some teaching institutions to revamp course offerings to attract local students.

“While the evidence suggests it’s not hard to recruit in the current market, it’s quality local graduates who are becoming increasingly hard to come by, particularly in regional, rural and remote areas.

According to a Graduate Careers Australia report, 93 per cent of graduates found full-time work within four months of completing their studies in 2001. By 2012 that figure had dropped to just 80 per cent.

But, according to Mr Henley, while job openings for accountants in Australia are expected to be ‘high’ the influx of skilled talent to our shores through immigration means local graduates are having an increasingly difficult time finding work.

“What we’re seeing is a complex employment and supply situation compounded by various accounting roles being ‘offshored’ or automated as larger companies begin to ‘rationalise’ their costs.”

The shrinking interest by local students in accounting also comes as the federal government and the peak accounting bodies argue over how hard it is for accountants to get a job.

 “Australia is a prime centre of learning for overseas students given our ranking on the world stage.

“With at least six Australian universities cited in the top 50 and 17 in the top 200 for finance and accounting, we are a centre of excellence.

“Unfortunately it appears that in some reason, local students aren’t entering the profession in the numbers we’ve been used to.”

Industry bodies, such as CPA Australia and Chartered Accountants Australia, have also expressed previously concerns over falling local domestic enrolments, however with a spike in overseas students numbers the Department of Employment says there is no shortage of accountants in Australia with calls for accounting to be taken off the Skilled Occupation List for new arrivals.

For further information or comment:

Matt Henley – Associate Alan McGillivray & Associates

PH: (02) 9821 2455