Federal Budget 2026–27: Key Migration and Visa Changes for Australia

The Australian Government has handed down the Federal Budget 2026–27, outlining several significant migration and border policy measures that will impact skilled migrants, employers, students, working holiday makers, and visa applicants.

The Budget maintains the permanent Migration Program at 185,000 places while introducing reforms aimed at attracting higher-skilled migrants, streamlining skills recognition, strengthening border security, and addressing misuse of the protection visa system.

Below is an overview of the major migration-related announcements from the 2026–27 Federal Budget.

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Permanent Migration Program Maintained at 185,000 Places

The Government has retained the permanent Migration Program planning level at 185,000 places for 2026–27.

The traditional allocation split remains broadly unchanged:

• 70% Skilled stream
• 30% Family stream

A notable policy direction is the continued prioritisation of onshore migrants already living in Australia.

Allocation Breakdown

• 129,590 places allocated to onshore applicants
• 55,110 places allocated to offshore applicants

The Government stated that offshore places will primarily target highly skilled migrants to support Australia’s long-term workforce and productivity needs.

This approach is also intended to place downward pressure on Net Overseas Migration (NOM).

Net Overseas Migration Forecasts

The Budget forecasts NOM to:

• Fall to 245,000 in 2026–27
• Further decline to 225,000 in 2027–28

The Government also expects strong arrivals from New Zealand citizens to continue due to Australia’s comparatively strong labour market conditions.

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Changes to the Skilled Migration Points Test

The Government announced plans to optimise the permanent migration Points Test to better select migrants who are:

• More highly educated
• Higher skilled
• Younger
• More likely to contribute to productivity and long-term economic growth

Currently, almost two-thirds of permanent skilled migrants are selected through points-tested visas.

No detailed reforms have yet been released, but further changes are expected in future announcements.

Potential future reforms may impact:

• Age points
• English language points
• Educational qualifications
• Australian study
• Work experience
• Priority occupations

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Faster Skills Assessments and Trade Recognition Reforms

A major Budget initiative is the investment of $85.2 million to improve skills assessments and occupational licensing for migrant trades workers.

The Government estimates these reforms could help facilitate an additional 4,000 skilled trades workers per year into the Australian workforce.

Key Measures Include:

1. Modernisation of Trades Recognition Australia (TRA)

$75.1 million over four years will fund a new modernised skills assessment system through Trades Recognition Australia (TRA).

This includes collaboration with states and territories to pilot streamlined assessment-to-licensing pathways for priority trades such as:

• Electricians
• Plumbers

2. Skills Assessments for Onshore Visa Holders

$5.6 million over three years will fund a new program allowing onshore visa holders to have their:

• Existing qualifications
• Trade skills
• Practical work experience

recognised more efficiently for employment purposes.

3. Stronger Oversight of Assessing Authorities

$4.5 million over four years will strengthen regulation and oversight of skills assessing authorities.

From 2027, each assessing authority will be required to publish an annual performance report to improve:

• Transparency
• Accountability
• Processing performance

Skills Migration Commissioner Consultation

The Department of Employment and Workplace Relations will also consult on introducing a Skills Migration Commissioner role.

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National Credit Recognition Framework

The Australian Tertiary Education Commission will develop a new National Credit Recognition Framework aimed at improving recognition of vocational education and training (VET) qualifications.

The reforms aim to:

• Reduce unnecessary duplication in study
• Improve recognition of prior learning
• Lower study costs
• Shorten qualification completion times

This is expected to particularly benefit university students with existing VET qualifications.

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Addressing Misuse of the Protection Visa System

The Government will introduce a pilot program titled “Addressing Misuse of the Protection Visa System”, funded at $3.9 million.

The initiative will provide migration duty lawyers to deliver pre-filing legal assistance in migration matters before the Federal Circuit and Family Court of Australia.

The stated objective is to help prospective applicants make informed and merit-based decisions before lodging judicial review applications relating to protection visa matters.

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Working Holiday Visa Program Reforms

The Government announced reforms to the Working Holiday Maker (WHM) program, including expanded use of visa ballots.

The reforms aim to:

• Better manage visa numbers
• Reduce barriers to work
• Improve fairness in visa allocations
• Support Australia’s national interests

Further details regarding ballot expansion and operational changes are expected later.

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Border Security and National Security Measures

Additional Funding for the Australian Border Force

The Australian Border Force (ABF) will receive an additional:

• $270 million in 2026–27

to strengthen border and enforcement capabilities.

Migration Law Changes Related to Extremism and Hate

The Budget also includes funding linked to implementation of the:

Combatting Antisemitism, Hate and Extremism (Criminal and Migration Laws) Act 2026

Measures include:

• New visa refusal grounds
• New visa cancellation powers
• Expanded character test provisions
• Additional training for immigration and visa officers

The Department of Home Affairs and Attorney-General’s Department will also implement a new prohibited hate group listing framework.

Community Safety Order Scheme

Funding has also been allocated to support implementation of the Commonwealth Community Safety Order Scheme.

Under this scheme, the Minister for Immigration and Citizenship may apply for supervision or detention orders for certain non-citizens considered to pose a risk of harm to the community.

Immigration Detention Services

The Government confirmed a new detention centre services contract has been entered into with Secure Journeys Pty Ltd.

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