Challenges in Retaining Staff in Regional Australia Due to Increased Expenses

A parliament hearing has highlighted the ongoing challenges for regional Australia to retain skilled workers, prompting calls for fair and sustainable federal funding.

Andrew Bryan, CEO of Kalgoorlie-Boulder City—one of Western Australia’s largest regional governments—shared concerns about the high turnover of local government staff in his area, located 600 km east of Perth.

“Two years ago, we were talking around the 40 percent turnover … We’ve dropped that down to probably high 20s now over the last two years, and we’re still running a bit over 20 percent vacancy rate at the moment,” he told the committee at the Regional Development, Infrastructure, and Transport hearing on Aug. 28.

“Primarily, that’s because we can’t compete with the wages.”

Bryan also noted the steep cost of living in regional areas, particularly affordable housing.

“For someone to actually come out there at the moment, a 4 [bedroom] by 2 [bathroom] house in Kalgoorlie is anywhere around $1,000-1,100 (US$680-748) a week to rent.”

To combat this, the city offers transitional housing to help new staff settle into the local community, but Bryan said that if they struggle to secure a lease, many do not stay.

“So, turnover in the first year is very high,” he said.

Kalgoorlie-Boulder, with a population of 30,697, including 7,000 families, generates $15.8 billion in annual economic output.

The city supports an estimated 16,943 jobs across a range of professions, with a large workforce in the mining, manufacturing, construction, transport, and logistics sectors.

When asked by South Australian MP Tony Zappia about filling vacancies with temporary workers, the CEO confirmed this is often the case.

“We have a lot of positions which are filled on a temporary basis,” Bryan said.

However, he said moving them around to meet project needs “has a flowing effect on the day-to-day service delivery.”

He gave an instance of hiring a road contractor, where the mobilisation cost alone can reach $100,000 to $150,000 to get there on site.

“And even then, they struggle to get accommodation when they’re out there so that adds further to your costs,” he said.

As a major regional hub, Kalgoorlie-Boulder plays a vital role in the broader Goldfields-Esperance region, contributing to its $41.3 billion annual economic output.

Other representatives, including those of the Kimberley Regional Group and Regional Capital Alliance, also echoed these concerns, urging for adequate funding to maintain service levels and meet community needs.

The committee has ordered a review of WA’s method for distributing federal Financial Assistance Grants to achieve a fairer outcome for remote communities.