The Federal Government handed down the 2026-27 Budget on 12 May 2026.
Migration Program Planning level 2026-27
The 2026-27 permanent Migration Program is set at 185,000 places the same total as 2025-26. The Skill stream is allocated 132,240 places (over 70 per cent of the program), and the Family stream is allocated the remainder.
The bigger change is who gets those places. The Government will prioritise applications from migrants already living in Australia, allocating 129,590 places to onshore applicants and 300 places to Special Eligibility. That leaves 55,110 offshore places predominantly for high-skilled migrants who help address Australia’s long-term skill needs.
The Budget notes that this measure will place downward pressure on net overseas migration.
Permanent Migration- subclass 189/190 A reformed permanent migration points test
The Government will reform the permanent migration points test to “better identify migrants who drive productivity and Australia’s long-term prosperity”. Almost two-thirds of permanent skilled migrants are currently selected through points-tested visas, so this is one of the more consequential reforms in the Budget.
The stated direction is to optimise the test to select “better educated, higher-skilled and younger migrants overall”. In practical terms, expect the new test to weight age, English-language ability and higher qualifications more heavily than the current test does.
A consultation paper is expected in June 2026, with a legislative instrument by December 2026. Existing invitations will be honoured under transitional arrangement.
Skills Assessments- Recognition of overseas qualifications.
The budget commits $85.2 million over four years from 2026-27 to the Department of Employment and Workplace Relations for faster, more flexible skills assessments. The package has three components:
- $75.1 million for a new, modern skills assessment system at Trades Recognition Australia (TRA), integrated with occupational licensing. The Government will work with states and territories to pilot streamlined assessment-to-licensing pathways for priority trades specifically including electricians and plumbers.
- $5.6 million for TRA to deliver a new program of skills assessments for onshore visa holders, recognising their existing qualifications and practical trade experience for employment.
- $4.5 million for stronger regulatory oversight of Assessing Authorities including a requirement for every Assessing Authority to publish an annual Performance Report from 2027. The Department of Employment and Workplace Relations will also consult on a skills migration commissioner role.
The Government estimates the package will cut the time taken to enter the workforce by up to six months and facilitate up to an additional 4,000 skilled trades workers into the workforce each year.
$167.4 million migration integrity package
The budget also commits $167.4 million over four years from 2026-27 to strengthen the integrity of Australia’s migration system. The package contains four distinct measures:
$74.2 million to the Federal Court of Australia and the Federal Circuit and Family Court of Australia (FCFCOA) to address misuse of the protection visa system. This includes increased efficiency in merits and judicial review processes, and a pre-filing pilot for a duty lawyer legal assistance service in the Sydney and Melbourne FCFCOA registries.
$46.4 million to strengthen systems capability across the migration system.
$27.0 million over two years to continue information and education activities improving migrant workers’ awareness of workplace safeguards, protections and compliance measures.
$19.8 million to the Department of Home Affairs for enhanced scrutiny of onshore and offshore student visa applications.
Working Holiday Maker program: ballots expanded
The Working Holiday Maker (Subclass 417 and Subclass 462) program is being reformed to “better control numbers, reduce barriers to work, provide a fairer allocation of WHM visas, and support Australia’s national interests”. The Budget specifically expands the use of ballots in the WHM program.
Ballots are not new to the program they have been used for a couple of high-demand source countries but expanded use signals that more nationalities will be allocated WHM places through a random draw rather than first-come-first-served lodgement. For applicants and tour and event organisers planning seasonal staffing, this is a genuine shift in how predictably WHM places can be secured.
Temporary Graduate visa charge: already doubled
The budget confirms what we already know that the visa application charge for the Temporary Graduate visa (Subclass 485) was increased by 100 per cent with effect from 1 March 2026. Eligible Pacific Island and Timor-Leste applicants are excluded from the increase.
The measure is estimated to raise an additional $1.2 billion over five years from 2025-26.
Funding to implement the Combatting Antisemitism, Hate and Extremism Act
The Government has committed $13.6 million over five years from 2025-26 (and $1.1 million per year ongoing) to the Department of Home Affairs to implement the migration elements of the Combatting Antisemitism, Hate and Extremism (Criminal and Migration Laws) Act 2026 including the new visa refusal and cancellation grounds, and the new character test provisions under the Migration Act 1958 (Cth).
A further $2.1 million over three years from 2025-26 is allocated to the Department of Home Affairs and the Attorney-General’s Department to implement the prohibited hate group listing framework, and to provide additional training to immigration and visa officers in relation to antisemitism and hate-related behaviours.
Net overseas migration: still falling
The budget forecasts net overseas migration of 295,000 in 2025-26 and 245,000 in 2026-27, falling to 225,000 by 2027-28 and remaining around that level through to 2029-30. Net overseas migration has declined by around 45 per cent from its peak in 2022-23.
The Budget notes that net overseas migration is moderately higher than previously expected in 2025-26 and 2026-27 because migrants on temporary visas are departing Australia at lower rates than in the past, and that arrivals of New Zealand citizens remain strong. The Budget signals that the policy changes in this package will place further downward pressure on net overseas migration.
Opinion - What this means for our clients
As with every budget it’s the detail that matters. It is important to note that onshore applicants are given priority to offshore, so forward planning become even more important.
If you are a migrant tradesperson already in Australia: watch for the rollout of Trades Recognition Australia’s new onshore assessment program. If your trade qualification has been bottlenecked on recognition, the new program is designed for you.
If you are a sponsoring employer in a trade: the skills recognition package, with priority for electricians and plumbers, may shorten the ramp-up time for your sponsored hires. Audit your pipeline for staff waiting on a licence or skills assessment.
If you are an onshore temporary visa holder transitioning to permanent residence: you are the express priority cohort of the 2026-27 Migration Program. Time your application carefully and ensure your application is decision ready.
If you are an offshore skilled visa applicant: the offshore allocation is much tighter at 55,110 places. Strong points scores and clear high-skill profiles will matter more than ever.
If you are a Subclass 485 (Temporary Graduate) applicant: the visa application charge has already doubled (since 1 March 2026), unless you are an eligible Pacific Island or Timor-Leste applicant. Factor the new cost into your planning.
If you are an applicant in a points-tested category: the points test overhaul is coming.
If your points are already relatively high under the current rules, particularly if you are older or rely on regional work history consider lodging your EOI before the changes.
If you are an employer or applicant in the WHM program: expect more nationalities to move to a ballot-based allocation. Build flexibility into seasonal staffing plans.
Protection visa integrity package- the integrity package is quite interesting especially where it relates addressing the misuse of the protection visa system. There will be a pre-filing pilot for a duty lawyer in the Sydney and Melbourne FCFCOA registries. Whilst it is unclear what this will mean in practice this may mean that self-represented applicants are now longer going to be able to lodge FCFCOA matters themselves. It looks like this pilot will require a duty lawyer to sign of on prospects of success before filing.
About Rocket & Ash Immigration Law
At Rocket & Ash Immigration Law, we specialise in helping partners, businesses, and professionals navigate the complexities of Australian immigration law. Our expertise in visa applications ensures that you receive tailored advice and support throughout your immigration journey.
If you have questions about how the 2026-27 Federal Budget affects your visa application or sponsorship arrangements, our experienced team can help.
Please book a free 15-minute discussion with our team if you have further questions.
Written by Ines Jusufspahic, LPN: 5511366
This article does not constitute legal advice or create a solicitor-client relationship. For up-to-date information, please consult an immigration professional.