Australian Federal Budget 2026-27 – Migration Updates

The Australian Government has officially released its latest financial plan, delivering key Federal Budget 2026-27 Migration Updates that bring significant news for skilled migrants, trades workers, and temporary visa holders.

While the overall permanent migration cap remains unchanged, the Government is making major shifts in how and where migrants are selected. With a heavy focus on onshore applicants, younger skilled professionals, and faster pathways for trades workers, these updates will reshape the migration landscape over the coming years.

Here is a comprehensive breakdown of the Federal Budget 2026-27 Migration Updates and what they mean for you.

1. Migration Program Planning Levels: A Focus on Onshore Applicants

The Government has announced that the permanent Migration Program planning level will remain capped at 185,000 places for 2026-27. The traditional split of approximately 70% Skilled / 30% Family programs will also be maintained.

However, the biggest shift is who will be prioritized:

• Onshore Priority: A massive 129,590 places (70% of the total program) will be allocated to migrants who are already living and working in Australia.
• Offshore Allocations: The remaining 55,110 places will be reserved predominantly for highly skilled offshore migrants to help address Australia’s long-term skill shortages.

Net Overseas Migration (NOM) is forecast to drop to 245,000 in 2026–27, with a further decline to 225,000 in 2027–28. This reflects the Government’s ongoing strategy to place downward pressure on net migration while maximizing the economic contribution of those already in the country.

2. A Shake-Up of the Points Test

If you are planning to apply for a points-tested permanent visa (like the Subclass 189, 190, or 491), you need to prepare for changes.

The Budget confirmed that the permanent migration Points Test will be optimised to better select migrants who drive productivity and long-term prosperity. The new test will strongly favor applicants who are:

• More highly educated
• Higher-skilled
• Younger overall

Currently, almost two-thirds of permanent skilled migrants are selected through points-tested visas. While specific point-allocation changes have not been fully detailed yet, we highly recommend lodging your Expression of Interest (EOI) as soon as possible before new age or education thresholds take effect.

3. Faster Skills Assessments for Trades Workers

In incredible news for the construction and trades sectors, the Government is investing $85.2 million to deliver faster skills assessments and accelerate occupational licensing. The goal is to funnel an additional 4,000 skilled trades workers into the workforce every year.

Here is how the funding will be used:

• $75.1 million for a new, modernised skills assessment system for Trades Recognition Australia (TRA), including streamlined assessment-to-licensing pilots for priority trades like electricians and plumbers.
• $5.6 million for a new program specifically for onshore visa holders, ensuring your existing qualifications and practical trade experience are rapidly recognized for employment.
• $4.5 million to strengthen oversight of Assessing Authorities, requiring greater transparency and performance reporting by 2027.

Additionally, the Government is developing a National Credit Recognition Framework to help university students with relevant VET qualifications reduce the length and cost of their studies.

4. Working Holiday Visa Reforms

The Working Holiday Maker (WHM) program will undergo reforms to better control numbers and reduce barriers to work. The Government plans to expand the use of ballot systems to ensure a fairer allocation of WHM visas that align with Australia’s national interests.

5. Compliance, Protection Visas, and National Security

The Budget also dedicates significant funding to the integrity and security of the migration system:

• Protection Visas: A $3.9 million pilot program will fund migration duty lawyers to deliver pre-filing legal assistance to prevent the misuse of the protection visa system.
• National Security: The Australian Border Force will receive an additional $270 million in 2026-27. Furthermore, over $207 million has been allocated to combat extremism, which includes new visa refusal and cancellation grounds, and expanded character test provisions under the Migration Act.
• Protecting Migrant Workers: $27 million over two years will be dedicated to grants that educate migrant workers about workplace safeguards and protection against exploitation.

What Should You Do Next?

With 70% of permanent visa places dedicated to onshore applicants and an impending overhaul of the Points Test, the 2026-27 Federal Budget sends a clear message: If you are already in Australia, your pathway to permanent residency has become the Government’s top priority.

However, changes to the points system could impact your current eligibility.

Don’t wait for the new rules to leave you behind. Contact our registered migration agents today to assess your points, get your skills assessment underway, and secure your visa strategy before the new financial year takes full effect!