Australia’s federal government has handed down its 2026-27 budget with the following announcements related to the migration portfolio:
Migration Planning Levels
Australia’s permanent migration intake will remain capped at 185,000 places. More than 70 per cent of permanent visas will be allocated to skilled migrants, while priority will increasingly be given to applicants already living in Australia.
The net overseas migration (NOM) is now expected to remain higher than previously forecast. Treasury revised NOM forecasts upward from 260,000 to 295,000 in 2025–26, and from 225,000 to 245,000 in 2026–27. The government says this is largely due to fewer temporary migrants leaving Australia and an increase in New Zealand citizens relocating to Australia to take advantage of strong labour market conditions.
Although NOM fell 44 per cent to 310,000 in 2024–25, it remains above the pre-pandemic average of around 230,000.
Reforms to points tested Skilled Migration
The government also announced reforms to the skilled migration points test – the first since 2012 – aimed at better selecting migrants with stronger education, skills and younger age profiles.
To address labour shortages, particularly in construction and electrical trades, the government will allocate $85.2 million to the Department of Employment and Workplace Relations to primarily spend on faster skills assessments and licensing recognition for Trades Recognition Australia. The measures are expected to help up to 4,000 additional skilled trades workers enter the workforce annually and reduce workforce entry delays by up to six months.
Working Holiday makers
Changes have been announced to expand the use of ballot systems in the Working Holiday Maker program to better manage visa numbers and provide a “fairer allocation”.
Compliance
The budget also includes integrity and compliance measures across the migration system. Funding will be directed toward tighter scrutiny of student visa applications, and improved workplace protections for migrant workers.
The Australian Border Force will also receive funding to strengthens laws against antisemitism, violent extremism and hate by implementing new visa refusal and cancellation grounds, and character test provisions under the Migration Act 1958.