Australia Migration Changes in 2025 and What Migrants Should Expect in 2026

The Australian migration landscape has continued to evolve rapidly throughout 2025. Key reforms have sought to balance the nation’s economic needs, labour market pressures, and public concerns about migration volumes. If you are planning to migrate to Australia in 2026, it’s critical to understand the policy shifts that may impact your pathway.

In this update, ProVisa summarises the most important changes from 2025 and provides clear expectations for what lies ahead in 2026.

1. Skilled Migration Program Remains Central

Australia’s Permanent Migration Program planning level for the 2025–26 financial year remains at 185,000 places, with a strong emphasis on skilled migration. Skilled stream visas continue to be prioritised to address workforce shortages and support economic growth.

However, the distribution of state and territory nomination places has tightened. Many states, including NSW, VIC, SA, WA, and TAS, experienced significant reductions in their Skilled Nominated (subclass 190) and Skilled Work Regional (subclass 491) allocations, increasing competition for aspiring migrants.

2. Income Threshold Increases (Effective 1 July 2025)

One of the most impactful changes in 2025 has been the annual indexation of skilled visa income thresholds. From 1 July 2025:

• The Core Skills Income Threshold (CSIT) increased from AUD 73,150 to AUD 76,515.

• The Temporary Skilled Migration Income Threshold (TSMIT) also rose to AUD 76,515.

• The Specialist Skills Income Threshold (SSIT) increased from AUD 135,000 to AUD 141,210. 

These thresholds apply to nomination applications lodged on or after that date and mean employers must demonstrate that nominated overseas workers are paid either the updated threshold or the annual market salary rate, whichever is higher.

This reform is designed to ensure that skilled migrant salaries remain aligned with Australian wage standards and reduce any risk of undercutting local workers. 

3. Skilled in Demand and Other Visa Reforms

While not fully confirmed through all official channels, a range of industry commentary and policy discussions in 2025 suggested:

• The introduction of a Skills in Demand (SID) visa, intended to replace the Temporary Skills Shortage (TSS) visa, with new streams and pathways. (Commonly referenced in migration commentary, but prospective applicants should always verify through Home Affairs directly.)

• A continued focus on pathways to permanent residency for holders of new or revised skilled visas.

Prospective migrants are encouraged to monitor official Department of Home Affairs announcements for the final details, as formal legislative instruments continue to be updated.

4. State and Territory Nomination Competition

State nomination pathways (such as for the 190 and 491 visas) have become more competitive as allocations tighten. According to planning data:

• The overall state nomination allocation for the 2025–26 year is 20,350 places, significantly lower than in previous years.

• Some states increased allocations (e.g., Queensland and the Northern Territory), while others saw decreases. 

These shifts mean that many applicants will need to submit strong and compliant EOIs (Expressions of Interest) and prepare supporting documentation early to have the best chance of receiving an invitation.

5. Student and Temporary Graduate Visa Changes

In 2025, several changes have affected international students and recent graduates:

Age and Eligibility Reforms

• The maximum eligible age for the Temporary Graduate Visa (subclass 485) was reduced for many applicants (General age cap is now under 35 for most streams, with exceptions for some Master and PhD holders). SBS Australia

Visa Hopping Restrictions

• New rules prevent some visa holders (e.g., visitor and temporary graduate visas) from applying for a student visa onshore, which has significant implications for transition planning.

Student Enrolment Caps and Processing Rules

• The government announced a cap of 295,000 international student places for 2026, or similar sectoral planning levels, reflecting broader efforts to manage migration flows. The Times of India

• Additional policies affecting processing prioritisation for student visa applications may be implemented to ensure balanced enrolment outcomes.

6. What to Expect in 2026

As Australia heads into 2026, prospective migrants should prepare for:

Continued Competition in Skilled Streams

• With fewer nomination places in some states, strong eligibility, timely document preparation, and strategic EOI management will be essential.

Higher Employer Obligations

• Employers nominating you under employer-sponsored or skilled migration programs will need to meet higher income thresholds and ensure compliance with evolving labour market requirements.

Greater Focus on Compliance

• Migration policy is trending toward stricter eligibility verification, especially for student transitions and skilled migrants. Applicants must stay informed and compliant to avoid delays or refusals.

2025 brought several important migration reforms that affect both employer-sponsored and skilled independent pathways, along with student and temporary graduate visas. For anyone planning to migrate to Australia in 2026, early preparation, understanding of new thresholds, and careful planning of nomination pathways will be key to success.

At Professional Visa and Education Services, we support clients with expert guidance on visa eligibility, documentation preparation, EOI strategy, and up-to-date compliance advice tailored to your migration goals.

Contact us to explore your migration options for 2026 and beyond.