Federal Budget 2026–27 Migration Update: What Migrants Need to Know

The 2026–27 Federal Budget has provided important updates for migrants, skilled workers, international graduates, students, families, and temporary visa holders planning their future in Australia.

While there has been no major increase to the overall permanent Migration Program numbers, the Budget clearly shows a continued focus on skilled migration, onshore applicants, stronger integrity checks, faster skills recognition, and changes to the Working Holiday Maker program.

Permanent Migration Program remains at 185,000 places

The Government has confirmed that the 2026–27 permanent Migration Program planning level will be set at 185,000 places. This continues the same overall planning level used for the 2025–26 program, which was also maintained at 185,000 places.

Out of the 185,000 places, 132,240 places, or more than 70 per cent, will be allocated to the Skill stream. This confirms that skilled migration remains the key focus of Australia’s permanent migration planning.

Across both the Skill and Family streams, the Government will prioritise migrants who are already living in Australia. The Budget allocates 129,590 places to onshore migrants, with an additional 300 places for Special Eligibility. The remaining 55,110 offshore places will mainly be directed towards high-skilled migrants who can help address Australia’s long-term skill needs.

What this means for onshore applicants

This is an important signal for migrants already in Australia. Onshore applicants, including international graduates, skilled workers, partner visa applicants, and temporary visa holders with strong pathways, may continue to be a priority under the 2026–27 program.

However, this does not mean every onshore applicant will have an easier pathway. Applicants will still need to meet visa requirements, occupation requirements, skills assessment conditions, English requirements, points requirements, health and character checks, and any state or employer nomination criteria where relevant.

The key message is that being onshore may be strategically important, but having a well-prepared application will remain essential.

Points test reform is coming

The Government has also confirmed that it will reform the permanent migration points test. According to the Budget papers, the points test will be changed to better identify migrants who contribute to productivity and Australia’s long-term prosperity. Almost two-thirds of permanent skilled migrants are currently selected through points-tested visas, and the Government says the test will be optimised to select better educated, higher-skilled and younger migrants overall.

This may be highly relevant for applicants considering visas such as skilled independent, state nominated, or regional skilled pathways. Although the full details of the new points test have not yet been released, applicants should pay close attention to factors such as age, English level, qualification, work experience, occupation demand, and skills assessment readiness.

Working Holiday Maker program reforms

The Budget also outlines changes to the Working Holiday Maker program. The Government plans to reform the program to better control numbers, reduce barriers to work, provide a fairer allocation of visas, and support Australia’s national interests. One of the key changes will be the expanded use of ballots to better manage demand for Working Holiday Maker visas.

This may affect future applicants from countries where demand is high. It also shows that Australia is moving towards more controlled and targeted temporary migration settings.

Faster skills recognition and trade assessments

A major positive announcement in the Budget is the Government’s investment in migrant skills recognition. The Department of Employment and Workplace Relations will receive $85.2 million over four years from 2026–27 to support faster and more flexible skills assessments.

This includes $75.1 million for a new modern skills assessment system for Trades Recognition Australia, including work with states and territories to pilot streamlined assessment-to-licensing pathways for priority trades such as electricians and plumbers.

There will also be $5.6 million over three years for a new TRA program to assess the skills of onshore visa holders, helping recognise existing qualifications and practical trade experience for employment and workforce shortage purposes. A further $4.5 million will strengthen oversight of assessing authorities, with annual performance reporting expected from 2027.

This is a promising development for trade workers and skilled migrants whose overseas experience and qualifications may not always be easily recognised in Australia.

Net overseas migration expected to reduce

The Budget also confirms updated net overseas migration forecasts. Net overseas migration is forecast at 295,000 in 2025–26, 245,000 in 2026–27, and 225,000 in 2027–28. The Budget notes that net overseas migration has declined by around 45 per cent from its 2022–23 peak and is expected to continue declining through to 2027–28.

The Government has stated that temporary visa holders are departing Australia at lower rates than previously expected, while arrivals from New Zealand citizens are also expected to remain strong. Migration policy changes in the Budget are intended to place downward pressure on net overseas migration.

Stronger migration system integrity

The Budget also includes $167.4 million over four years from 2026–27 to strengthen the integrity of Australia’s migration system. This includes funding for faster and more efficient review processes, stronger systems capability, information and education activities for migrant workers, and enhanced scrutiny of student visa applications.

For applicants, this reinforces the importance of lodging genuine, accurate, and well-documented visa applications. Student visa applicants, in particular, should ensure their study intentions, financial documents, academic background, English evidence, and supporting documents are consistent and credible.

Temporary Graduate visa application charge increase

The Budget papers also confirm that the Government increased the visa application charge for Temporary Graduate visa applicants by 100 per cent, excluding eligible Pacific Island and Timor-Leste applicants, with effect from 1 March 2026. This measure is estimated to increase receipts by $1.2 billion over five years.

This is an important cost consideration for international students and graduates planning their post-study pathway in Australia.

Key takeaway for migrants

The 2026–27 Budget does not reduce the permanent Migration Program planning level, but it does show a more targeted migration direction. Australia is continuing to prioritise skilled migration, onshore applicants, high-skilled offshore applicants, faster skills recognition, and stronger compliance across temporary and permanent visa programs.

For migrants, this means planning early is more important than ever. Understanding your occupation pathway, points score, skills assessment options, English requirements, state nomination opportunities, employer sponsorship options, and visa expiry dates can help you make better decisions before policy settings change further.

At Professional Visa and Education Services, we encourage migrants to review their current visa status, future eligibility, and available PR pathways as early as possible. A well-planned strategy can make a significant difference in a changing migration environment.

Need help understanding your options after the 2026–27 Budget update?
Book a consultation with our registered migration team to discuss your visa pathway, eligibility, and next steps.

Disclaimer: This article provides general information only and should not be taken as migration advice. Individual circumstances vary, and applicants should seek professional advice before making visa decisions.