The federal government has outlined its latest migration policy settings in the 2026–27 federal budget, confirming that Australia’s permanent migration intake will remain at 185,000 places per year, with more than 70% allocated to skilled migrants.
The government said the future migration system will place greater emphasis on attracting applicants with higher education levels, stronger technical skills, and younger age profiles, in response to Australia’s long-term labour shortages, particularly in critical industries such as construction and electrical trades. Authorities stressed that skilled migrants play an important role in supporting infrastructure projects, housing supply, and the energy transition.
According to the budget, the government will prioritise permanent residency applications from people already residing in Australia, rather than offshore applicants. The arrangement will apply to both skilled migration and family migration streams. The remaining approximately 55,110 offshore permanent migration places will mainly be allocated to highly skilled workers able to meet Australia’s long-term workforce needs.
The government also announced an investment of A$85.2 million to accelerate skills assessments and professional qualification recognition processes, including improvements to occupational licensing and skills accreditation systems. The reforms are expected to reduce the time required for overseas skilled workers to enter the Australian labour market by up to six months.
Authorities estimate the measures could bring an additional 4,000 skilled workers into Australia’s labour force each year, mainly in sectors such as construction and electrical work. In addition, the government will allocate a further A$27 million over the next two years to provide migrant workers with education on workplace protections, labour rights, and migration regulations, helping new arrivals better understand workplace rights and compliance requirements.
The working holiday visa program will also undergo reforms. Proposed changes include tighter management of visa numbers, reduced employment restrictions, and improvements to fairness in visa allocation.
The government said the overall objective of the migration reforms is to better align the migration system with Australia’s economic needs while easing pressure on infrastructure, housing, and public services.