The Federal Government has released its 2026–27 Budget, outlining several migration updates that may impact employers, skilled workers, and visa applicants across Australia.
Migration Program to remain
The permanent Migration Program will remain at 185,000 places for the 2026–27 program year, maintaining the Government’s approximate:
- 70% Skilled visa allocation; and
- 30% Family visa allocation.
The Government also confirmed that around 70% of permanent visa places will continue to be allocated to applicants already living in Australia, meaning onshore applicants are likely to remain prioritised.
Net Overseas Migration expected to reduce
Net Overseas Migration (NOM) is estimated to reduce to:
- 245,000 in 2026–27; and
- 225,000 in 2027–28.
While migration numbers are expected to decrease overall, demand for Australian permanent residency remains extremely high. As a result, it is our view that individuals may see processing in permanent visa applications slowdown in the coming years while Home Affairs adjust to the above figures. We are already seeing applications bottleneck through the ENS (Subclass 186), General Skilled Migration and Partner visa schemes with the existing figures. The above is forecast from our agency, we always feel that our clients should be prepared for the long-term then it comes to waiting times.
Points Test Changes
The Government has also confirmed that the permanent migration Points Test will be reviewed to better target younger, higher-skilled, and highly educated migrants. More on this to come, we will see what the states are prioritising in the coming months.
Skill Assessment Changes & Trades workers
In addition, the Budget includes significant funding towards faster skills assessments and licensing pathways for skilled trades workers, including electricians and plumbers.
This includes investing into:
- Modernising the Trades Recognition Australia (TRA) skills assessment system;
- New assessment pathways for onshore visa holders; and
- Improved oversight of Assessing Authorities.
Overall, the Government appears to be prioritising getting more trades workers into Australia to support businesses, workforce shortages, and major infrastructure projects. As a result, we may also see trade occupations continue to be prioritised by Delegates moving forward.
Working Holiday Visa Program
The Budget also announced proposed reforms to the Working Holiday Maker (WHM) program, including broader use of visa ballots to help manage application numbers, improve fairness in the allocation process, and support Australia’s workforce and national interests.
At this stage, there are still limited details regarding how these changes may operate in practice. Given the important role Working Holiday visa holders play in supporting regional businesses and industries across Australia, our view is that we’ll have to wait and see what further details are released over the coming months.
Need some support?
With migration changes continuing to evolve, finding personalised advice early can make all the difference. If you would like assistance understanding how these updates may affect you or your business, contact us at [email protected].