The 2026-27 Federal Budget was handed down last night. If you are running a business that relies on skilled talent, or advising people navigating the Australian immigration system, there is quite a bit to unpack.
Here is what matters and what you should be thinking about right now.
1. The 2026–27 Permanent Migration Program
The Government has set the permanent Migration Program planning level at 185,000 places, with 132,240 (just over 70 per cent) allocated to the Skill stream.
The more significant shift is in where those places are directed. Across both the Skill and Family streams, the Government has prioritised onshore applicants, allocating 129,590 places to migrants already living in Australia, with an additional 300 places set aside for Special Eligibility. The remaining 55,110 offshore places will predominantly go to highly skilled migrants who address Australia’s long-term workforce needs.
If you have skilled workers in your business currently on temporary visas, this is the moment to review their pathway to permanency. The strong bias toward onshore applicants is a meaningful opportunity for those already here and it is expected to place downward pressure on net overseas migration overall.
2. Reform of the Permanent Migration Points Test
Almost two-thirds of permanent skilled migrants are currently selected through points-tested visas, and the Government has announced it will reform that system.
The aim is to select migrants who are better educated, higher skilled, and younger — those the Government believes will drive productivity and long-term economic prosperity. The revised test will be optimised to identify migrants who best support Australia’s future workforce needs.
The details are still to be finalised through stakeholder consultation, but the direction is clear. For anyone currently weighing the timing of a skilled migration application, this is worth watching closely. We will be updating clients as the process progresses.
3. Working Holiday Maker (WHM) Program Reforms
The Government has announced reforms to the Working Holiday Maker program designed to better manage numbers, reduce barriers to work, and support a fairer allocation of WHM visas. This includes expanding the use of ballots within the program to support more effective management overall.
For businesses that rely on WHM visa holders, particularly in hospitality, agriculture, and seasonal industries, it is worth understanding how the ballot expansion may affect your access to this workforce. We will provide further guidance as the details of these changes are confirmed.
4. Faster and More Flexible Skills Assessments
This is welcome news for employers in construction and the trades.
The Government has committed $85.2 million over four years to improve the recognition of migrant skills through faster and more flexible assessments. The package has three components:
A new skills assessment system for Trades Recognition Australia (TRA) — $75.1 million to modernise TRA’s systems and integrate occupational licensing. The Government will work with states and territories to pilot streamlined assessment-to-licensing pathways for priority trades, including electricians and plumbers. Costs will be recovered over the medium term through existing charging arrangements.
Onshore assessments for visa holders already in Australia — $5.6 million over three years for TRA to assess onshore visa holders, ensuring their existing qualifications and trade experience are recognised for employment and workforce purposes. New cost recovery arrangements will apply over the medium term.
Stronger oversight of Assessing Authorities — $4.5 million over four years to improve performance, transparency, and accountability, including a requirement for every Assessing Authority to publish an annual performance report from 2027. The Government will also consult on the potential establishment of a skills migration commissioner.
For employers hiring skilled tradespeople from overseas, this represents a substantive improvement to what has historically been a slow process, with real implications for how quickly overseas-trained workers can enter your workforce.
What Is Next
We are working through the full budget documents now and will be publishing more detailed guidance on the points test reforms and their implications for skilled migration pathways as further details emerge.
If you have specific questions about how any of these changes affect your business, your employees, or your own migration journey, please reach out. That is exactly what we are here for.
RSG is a global workforce solutions and immigration law firm. Our team works with employers, individuals, and organisations navigating the Australian immigration system.
