Australia will keep its permanent migration program at 185,000 places in 2026–27, but will sharpen selection towards skilled onshore applicants and reform how migrants are assessed and prioritised.
The Migration Program Remains Stable at 185,000 Places
On 12 May 2026, the Australian Government confirmed that the 2026–27 permanent migration program will stay at 185,000 places, maintaining the same approximate 70:30 split between skilled and family migration as 2025–26.
Rather than expanding intake, the government is adjusting allocation settings to better align migration with labour market needs, economic outcomes and onshore retention.
| Program Category | 2025–26 Planning Level | 2026–27 Planning Level |
| Skilled Migration Program | 132,200 | 132,240 |
| Australian Family Program | 52,500 | 52,460 |
| Special Eligibility | 300 | 300 |
| Total Migration Program | 185,000 | 185,000 |
The skilled migration program remains the largest component, supporting workforce demand and economic growth. The family program continues to be largely driven by partner visas, while special eligibility remains limited.
Australia Is Prioritising Onshore Skilled Migrants
A key feature of the 2026–27 program is the continued preference for applicants already in Australia. Across both skilled and family streams, 129,590 places will be allocated to onshore migrants, while 55,110 places will go to offshore applicants, with offshore intake focused on high-skilled occupations.
This approach supports faster permanent residency transitions for migrants already working in Australia and reduces reliance on offshore recruitment pipelines. It also reflects broader migration planning linked to Net Overseas Migration (NOM), which includes both permanent and temporary migration flows such as students, Working Holiday Makers, citizens, New Zealand nationals and humanitarian entrants.
In 2024–25, 61% of skilled visas and 39% of family visas were granted to onshore applicants. The 2026–27 settings extend this direction by further increasing in-country allocations.
For employers, this reinforces a clear shift: retaining and transitioning existing workers is becoming more effective than offshore recruitment in many occupations.
Skilled Migration Program Breakdown
The skilled migration program allocates 132,240 places, with demand concentrated in employer-sponsored and state-nominated pathways.
| Category | 2025–26 Planning Level | 2026–27 Planning Level |
| Employer Sponsored | 44,000 | 58,040 |
| State/Territory Nominated | 33,000 | 35,500 |
| Skilled Independent | 16,900 | 21,090 |
| Regional (Skilled Regional) | 33,000 | 14,110 |
| Talent and Innovation | 5,300 | 3,500 |
| Total Skilled Migration Program | 132,200 | 132,240 |
The composition confirms that employer- and government-nominated pathways remain central to Australia’s skilled migration system, particularly where labour shortages are persistent.
Skilled Migration Reforms and Workforce Priorities
The 2026–27 budget includes reforms aimed at improving how Australia selects, assesses and integrates skilled migrants. The focus is on aligning migration outcomes with workforce demand, improving system efficiency and strengthening long-term planning in critical sectors.
Skilled Migration Points Test Will Be Reformed
The government will reform the General Skilled Migration (GSM) points test to better select migrants who contribute to economic growth and workforce capability. The revised model will prioritise younger applicants, higher-skilled candidates and stronger educational outcomes.
These changes are expected to affect applicants under key skilled visas, including:
- Skilled Independent (subclass 189) visa
- Skilled Nominated (subclass 190) visa
- Skilled Work Regional (subclass 491) visa
The shift signals a more competitive selection model where employability, qualifications and economic contribution carry greater weight. Applicants relying on marginal points scores may need to reassess their eligibility as further details emerge.
Faster Skills Assessments for Trades Workers
The government will invest $85.2 million over four years to speed up skills recognition and occupational licensing for migrant trades workers.
The reforms aim to reduce delays preventing qualified migrants from entering the workforce and are expected to shorten workforce entry times by up to six months, supporting around 4,000 additional trades workers annually. The changes will better integrate skills assessments with licensing pathways, particularly for priority trades such as Electricians and Plumbers.
This is expected to improve workforce access in construction, infrastructure and housing delivery, where demand remains high.
Working Holiday Maker Program Changes
The Working Holiday Maker (WHM) program will be reformed to improve allocation fairness and better manage visa numbers.
Key changes include expanded use of ballot systems and adjustments to align the program more closely with labour market needs. While implementation details are still pending, industries that rely heavily on WHM labour may face more structured and less predictable workforce supply conditions.
Compliance, Student Visa and System Integrity
The budget allocates significant funding to strengthen visa integrity, compliance and enforcement across the migration system.
The government will invest $167.4 million over four years to enhance monitoring, improve system capability and strengthen regulatory oversight. This includes faster processing of migration review matters, improved system monitoring and enhanced scrutiny of student visa applications.
An additional $27 million over two years will fund education initiatives to improve migrant awareness of workplace rights, employer obligations and compliance requirements. A further $19.8 million over four years will strengthen student visa assessment and monitoring across both onshore and offshore applications.
These measures confirm continued strong regulatory focus on employer sponsorship, student visas and migration compliance.
Adult Migrant English Program to Be Redesigned
The Adult Migrant English Program (AMEP) will be reformed from 2029 to provide more flexible learning options and targeted support for migrants with higher language needs. The changes aim to improve employment participation, workplace communication and long-term settlement outcomes.
Treasurer Jim Chalmers highlighted English language capability as an important factor in workforce participation and long-term economic integration.
Policy Direction: Productivity, Onshore Retention and Skilled Selection
The 2026–27 migration program reflects policy continuity rather than expansion. The government is focusing on three core priorities: supporting economic productivity, prioritising migrants already in Australia and tightening offshore selection.
The growing emphasis on onshore migration signals that temporary visa pathways are increasingly viewed as structured routes to permanent residency rather than separate migration streams.
What This Means for Skilled Migrants
For skilled visa applicants, the key change is not program size but increased competition and tighter selection.
Onshore applicants with Australian work experience remain in a stronger position, particularly in priority occupations or employer-sponsored roles. Offshore applicants face higher competition unless they have specialised skills aligned with workforce shortages.
Applicants should expect continued pressure on points thresholds and stronger competition for invitations under points-tested visas.
What This Means for Employers
For employers, the settings reinforce the importance of structured migration planning.
Retention of existing staff is becoming more valuable than offshore recruitment, particularly where employer-sponsored pathways can support long-term workforce stability.
Employer-sponsored visas remain central to addressing skill shortages, while compliance obligations continue to increase, requiring stronger governance and workforce planning.
How SALIA Lawyers & Associates Can Help
As Australia’s migration system becomes more selective and onshore-focused, strategic advice is increasingly important for both individuals and employers. SALIA Lawyers & Associates provides support across skilled migration, employer-sponsored visas, permanent residency strategy, skills assessment pathways, sponsorship compliance and visa refusals and appeals.
With ongoing policy refinement, early legal guidance can help applicants and employers align their migration strategy with Australia’s evolving priorities and improve long-term outcomes.
Disclaimer: Please note that the information provided is intended as a general guide and should not be relied upon as legal or migration advice. As migration laws and regulations can change, we recommend consulting an Australian Lawyer or Registered Migration Agent for advice tailored to your circumstances.
