Migration - Federal Budget Update

FEDERAL BUDGET UPDATE

Migration Program Numbers

The Government has maintained the 2026–27 permanent Migration Program at 185,000 places, retaining an approximate 70:30 split between the Skilled and Family streams.

Priority will be given to onshore applicants across both streams, with 129,590 places (70%) allocated to migrants already residing in Australia. The remaining 55,110 offshore places will largely target highly skilled migrants to support Australia’s long-term workforce needs. This approach is designed to place downward pressure on net overseas migration.

Net Overseas Migration (NOM) is projected to decrease to 245,000 in 2026–27 and further decline to 225,000 in 2027–28. Arrivals of New Zealand citizens are expected to remain strong, driven by Australia’s relatively favourable labour market conditions.

Points test

The permanent migration Points Test will be enhanced to more effectively select migrants who are highly educated, highly skilled, and younger, supporting productivity and Australia’s long-term economic growth. Currently, nearly two-thirds of permanent skilled migrants are selected through points-tested visa pathways.

Recognition of overseas qualifications / skills / skills assessments

The Government will invest $85.2 million to improve the efficiency of skills assessments and accelerate occupational licensing for migrant trades workers, with the aim of adding 4,000 workers to the workforce each year. This includes funding for a modernised Trades Recognition Australia (TRA) assessment system, new skills assessment pathways for onshore visa holders, and enhanced oversight of Assessing Authorities to improve transparency and accountability.

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

In addition, the Australian Tertiary Education Commission will develop a National Credit Recognition Framework to strengthen recognition of VET qualifications, reducing duplication and lowering the time and cost of university study for eligible students.

Working Holiday Visa Program

The Australian Government will reform the Working Holiday Maker (WHM) program by expanding the use of ballots. These changes aim to better control participant numbers, reduce employment barriers, ensure fairer visa allocation, and better support Australia’s national interests.

Australian Border Force / National Security

The Australian Border Force will receive supplementary funding of $270 million in 2026–27.

$207.4 million over five years from 2025–26 has been allocated to combat antisemitism, violent extremism, and hate in Australian communities.

Key migration-related investments include:

$13.6 million over five years from 2025–26 (plus $1.1 million per year ongoing) for the Department of Home Affairs to implement migration provisions under the Combatting Antisemitism, Hate and Extremism (Criminal and Migration Laws) Act 2026. This introduces new visa refusal and cancellation grounds, plus strengthened character test provisions in the Migration Act 1958.

$2.1 million over three years from 2025–26 to the Department of Home Affairs and Attorney-General’s Department for a new prohibited hate group listing framework.

Funding will also support additional training for immigration and visa officers on antisemitism and hate-related behaviours.

Protecting Migrant Workers - Information and Education Program Extension

27 million over two years from 2026–27 has been allocated to extend the Protecting Migrant Workers – Information and Education grants program.

These grants will support targeted information and education activities designed to provide migrant workers with accurate and appropriate information about:

• Workplace safeguards and protections

• Compliance measures related to migration law

Strengthened awareness will better equip visa holders with knowledge of their rights, helping prevent exploitation and promoting compliance for both workers and employers.

For further information and assistance, Book a consultation with one of experienced Registered Migration Agents today.

Disclaimer: The information provided herein is of a general nature only and does not constitute immigration advice. For more detailed and case-specific information or advice, please get in touch with SCA Connect.