Australia announced a new set of migration reforms on 17 September 2026 aimed at lowering net overseas migration and reshaping processing priorities for a range of temporary and skilled visas.
Key migration targets
- Net overseas migration target: 245,000 for 2026‑27, falling to 225,000 from 2027‑28.
- Actual net overseas migration for the year to March 2026: 292,100.
Ministerial Directions 121 and 122 (effective 18 September 2026)
| Direction | Scope | Main changes |
|---|---|---|
| MD 121 | Temporary skilled (subclass 482) visas | • Introduces a five‑tier priority framework. • Tier 1: occupations in Construction, Healthcare, Teaching, Agriculture, Aquaculture, Fishing, Resources, plus law‑enforcement and defence roles (determined by ANZSCO code). • Tier 2: Specialist Skills stream (base salary ≥ AUD $146,576). • Tier 3: On‑shore primary applicants. • Tier 4: Offshore primary applicants without family. • Tier 5: All other applications. |
| MD 122 | Provisional and permanent skilled visas (subclasses 186, 187, 189, 190, 191, 489, 491, 494, 887, 888) | • Mirrors MD 121’s sector‑based priority (same seven sectors plus law‑enforcement/defence). • Tier 1: Priority sectors, on‑shore or offshore. • Tier 2: On‑shore primary applicants. • Tier 3: Offshore primary applicants without family. • Tier 4: All other applications. |
- The priority sectors are defined by the applicant’s ANZSCO occupation code, not by the broader industry.
- Accredited sponsors no longer receive a separate priority; they fall under the same tiered system.
- Regional‑specific priority for designated regional areas has been removed.
Impact on employer‑sponsored and skilled migration pathways
- No changes to eligibility for employer‑sponsored subclasses 482, 186, 494.
- Processing times for offshore‑lodged skilled applications have been lowered in priority; on‑shore applications generally receive faster handling.
- Employers are advised to lodge sponsored applications as early as possible, especially where on‑shore lodgement is available, and to verify the visa status of any temporary‑visa workforce.
- For occupations that fall within the defined priority sectors, timing decisions should be revisited once the final details of MD 121 are published.
Working Holiday Maker program
- Second‑year visas: moved to a ballot system with an annual cap of 45,000 places (down from ~57,000).
- Third‑year visas: ballot cap of 5,000 places (down from ~31,000).
- Regional work requirements remain unchanged.
- Holders of United Kingdom passports are exempt under the Australia‑UK Free Trade Agreement.
- Primary Working Holiday applications are experiencing processing delays.
Visitor, Student and Graduate visas
- Condition 8503 (No Further Stay) will be imposed on all new Visitor visa grants, preventing most on‑shore switches to other visa subclasses. Existing Visitor visa holders are unaffected. The condition is expected on Electronic Travel Authorities by end 2026.
- Student & Graduate visas: family members can no longer be included, except for postgraduate research (PhD) candidates and certain Pacific and ASEAN nationals. Dependents already holding a visa retain their status.
- Course changes are limited to qualifications of an equal or higher level to curb “visa hopping”.
- From 2 October 2026, applicants for a subsequent Student visa must generally apply offshore.
Compliance and migration‑agent regulation
- Approximately 100 additional compliance officers and 250 extra detention places are being added.
- Australian Border Force field operations target an estimated 77,700 unlawful non‑citizens.
- The Code of Conduct for registered migration agents will be tightened; agents who lodge or encourage non‑genuine protection claims may face sanctions or deregistration.
Practical considerations for employers and applicants
- Review recruitment timelines that rely on Working Holiday, Student, Graduate or Visitor pathways; consider shifting to employer‑sponsored visas for longer‑term needs.
- Prioritise on‑shore lodgement where possible to benefit from higher tiers under MD 121/MD 122.
- Confirm that the occupation code used in the application aligns with one of the priority sectors to improve processing speed.
- Monitor upcoming publications of the final Ministerial Directions for any adjustments to tier definitions or sector lists.
These reforms aim to align Australia’s migration intake with labour‑market priorities while tightening control over temporary visa streams. Employers and prospective migrants should adjust their planning to the new priority framework and the reduced caps on certain visa categories.
Source article: newlandchase.com
