The 2026–27 Federal Budget identifies migration as one of the drivers of Australia’s productivity growth. Australia is looking at a skilled and targeted migration, prioritising higher-skilled entrants to strengthen national productivity and address essential workforce needs.
In the 2026–27 migration program, Australia will allow up to 185,000 permanent migrants. 132,240 of these places (over 70%) are for skilled migrants. The government will give priority to people who are already living in Australia, with 129,590 places set aside for onshore applicants. There are also 300 spots for Special Eligibility cases. The other 55,110 places are for high-skilled workers who are applying from overseas.
The budget papers indicate that the permanent migration points test will be reformed to prioritize candidates who are better educated, highly skilled, and younger. This change is intended to ensure that migration intake aligns with Australia’s strategic economic requirements.
The Government has committed $85.2 million to accelerate skills assessments for migrant trades workers, enabling them to join the workforce sooner. These reforms will enhance skills recognition and streamline occupational licensing, facilitating easier access for migrants to work in their profession throughout Australia.
In summary, the Budget signals Australia’s commitment to a more targeted, higher-skilled migration program, focusing on skilled professionals who can contribute to productivity growth and address workforce shortages. The emphasis on skilled and targeted migration will mean that the process for applicants is expected to be even more rigorous, and the pathway to permanent residency may be less straightforward.
With a more competitive and complex migration landscape, seeking expert advice and support is more important than ever to ensure you understand your options and maximise your chances of success.
Should you wish to discuss how these changes may affect your visa options or business sponsorship strategies, please contact the DOMA team for tailored advice.
