"One Nation's proposal to slash Australia's migrant intake risks severe economic self harm at a time when we are already bedevilled by significant labour and skills shortages," said Innes Willox, Chief Executive of the national employer association, Australian Industry Group.

"Those shortages are a big factor in Australia's struggling economy and will only exacerbate the difficulties that businesses across the country are facing to be productive, compete and grow.

"We do need a migration system that is transparent and accessible for Australian industry. We also need to ensure that we remain open to global talent and are not seen as an insular nation turning our backs on the rest of world.

"Our current migration debate risks identifying the wrong targets at the wrong time. Approximately, one-third of Australia's current workforce are migrants.

"Even with that contribution to our economy, we simply will not build the infrastructure we need – housing, national security, energy or a 2032 Olympics – with the shape of our current labour market.

"Preventing the partners of skilled migrants coming to Australia would mean many potential strong contributors to the Australian economy would not apply. There is a global war for talent taking place and deliberately making it difficult for people with skills in demand to come here means that businesses and communities would undoubtedly suffer.

"The migration system already is slow and clunky for applicants and businesses. It needs to be made fit for purpose but to turn off the migration tap now would also risk a further slide into economic mediocrity with, at best, perpetual low and slow growth.

"As we said in our submission to the Joint Standing Committee on Migration, we need to maintain the permanent skilled migration intake at current levels, streamline skills recognition and improve visa processing times," Mr Willox said. 

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