Australia’s 2026‑27 Federal Budget keeps the overall immigration framework largely unchanged but introduces several targeted adjustments aimed at tightening skill selection, improving trade‑occupation assessments, and moderating temporary‑visa inflows.
Permanent migration quota unchanged
- Total permanent migration places remain at 185,000, the same level set for the past two fiscal years.
- 132,240 places (≈ 70 %) are allocated to the skilled‑migration stream.
- Of those, 129,590 places are reserved for migrants already residing in Australia, reinforcing the on‑shore focus of the program.
Points‑test reform for General Skilled Migration (GSM) visas
The points‑based system for subclasses 189 (Skilled‑Independent), 190 (Skilled‑Nominated) and 491 (Skilled Work Regional – Provisional) will be revised to “select better educated, higher‑skilled and younger migrants overall.” While the precise changes have not been disclosed, the reform is expected to:
- Award additional points for higher qualifications and advanced work experience.
- Increase the weighting for younger age brackets.
Trade‑occupation skill assessments – faster and more transparent
- Trades Recognition Australia (TRA), housed within the Department of Employment and Workplace Relations, will launch a new skill‑assessment program specifically for on‑shore visa applicants.
- Processing times for these assessments are slated to be reduced.
- From 2027, all skill‑assessment authorities must publish performance reports, introducing greater oversight, transparency, and accountability.
Net overseas migration (NOM) projected to fall
- NOM is forecast to decline from 305,000 (2024‑25) to 225,000 by 2027‑28.
- The reduction reflects a slowdown in temporary visa categories, notably those linked to overseas education and the working‑holiday scheme.
- Migration from New Zealand is expected to stay robust, continuing the trend of young workers moving across the Tasman Sea.
Working‑holiday maker program adjustments
- The government will expand the ballot system to include more source countries, aiming for tighter control of entrant numbers.
- A cap on the subclass 417 – Working Holiday visa exists but has not been actively applied.
- The subclass 462 – Work and Holiday visa already operates under a strict cap, which will remain in place.
These budgetary tweaks signal a shift toward a more selective, on‑shore skilled migration strategy while curbing the growth of temporary visa streams. Stakeholders should monitor forthcoming policy details, especially the revised GSM points criteria and the new TRA assessment framework, to assess the impact on migration planning and workforce supply.
Source article: www.peakmigration.com.au
