FEDERAL BUDGET 2026 -27: What does it mean for Migration?
The government has left the 2026 – 27 Permanent Migration Program (PMP) planning level unchanged at 185,000 places, while maintaining an approximate split of 70% Skilled Migration (SM) and 30% Family Migration (FM).
The government will prioritise onshore migrants by allocating approximately 70% of the places across both SM and FM programs. The remaining 30% offshore migration will predominantly be allocated to highly skilled migrants thus addressing Australia’s skills gaps and shortages.
Net Overseas Migration (NOM) tracks long- term arrivals to Australia, minus departures and the government has forecast NOM to decline in 2026–27 with further declines in 2027–28.
Changes to Points Test:
The Permanent Migration Points Test will change and be refined to better select more highly educated, higher-skilled and younger migrants overall, who drive productivity and Australia’s long-term prosperity. We have been provided with no further information on this but expect these changes within the next coming months.
Improved Skills Assessments:
There will be a cash injection into the Department of Employment and Workplace Relations for a faster and better process in recognition of migrant skills assessments.
Trade Recognition Australia (TRA), one of the skill assessment providers, will be receiving upgrades in order to facilitate the integration of occupational licensing, including working with different states and territories to streamline assessments to licencing pathways for priority trades such as electricians and plumbers.
Further improvements will be to deliver a new program of skills assessments for onshore visa holders, to strengthen the regulatory oversight of assessing authorities, to drive better performance, greater transparency and clearer accountability.
Protection visa changes:
A pilot program will be launched allowing migration duty lawyers to deliver pre-filing assistance in migration matters before the Federal Circuit and Family Court of Australia (FCFCA) and help prospective judicial review applicants make informed, merit-based decisions on whether to pursue review applications in the FCFCA.
The aim of this pilot program is to reduce misuse of the Protection Visa System by assisting migrants in making informed decisions to lodge merit based Protection Visa review applications before the FCFCA and not applications that have no reasonable prospect of success.
Working Holiday Visa changes:
There will be changes to the Working Holiday Maker (WHM) program and the government will expand the use of ballots to better control numbers. They will also be removing barriers to work and provide a fairer allocation of the WHM visas.
Are the Federal Budget changes good or bad for migration?
Overall, there been positive changes in the 2026 – 27 PMP, with a definite drive to attract younger migrants and also highly skilled migrants to plug any skills shortage gaps in Australia’s labour market.
Government has been consistent in continuing to implement its policy of providing priority to skilled workers already in Australia (i.e. onshore) to become permanent residents versus those skilled workers currently not in Australia (i.e. offshore). This prevents the never-ending cycle of skilled workers entering and leaving Australia with never permanently solving the skills shortage in Australia.
Prepared by:
Yossi Witkowsky (B.A law; LLB)
Senior Solicitor
CALL NOW +61731800908 or email – info@phoenix-law.com.au | Level 8, 320 Adelaide Street, Brisbane. #BudgetMigration #phoenixlaw #brisbanelawyers #MultilingualLawyers #MigrationLaw
Image Credit – Qantas Airlines
