The Federal Budget for 2026–27 provides welcome clarity on Australia’s migration settings for the year ahead. While there are no major shifts in overall numbers, the detail reveals a program that is increasingly targeted, more competitive, and more complex for both employers and applicants to navigate.
Migration Program Numbers – Stability with Strategic Focus
The Government has confirmed that the permanent Migration Program will remain at 185,000 places for the 2026–27 program year.
This broadly maintains the 70:30 split between Skilled and Family streams, reinforcing Australia’s continued reliance on migration to address labour shortages while still supporting family reunification.
A notable feature is the increasing prioritisation of onshore applicants, with a significant share of skilled visas expected to go to migrants already living and working in Australia.
Across both the Skill and Family streams, the Government will continue to prioritise applications from onshore migrants, allocating 129,590 places to applicants already living in Australia. The remaining 55,110 offshore placeswill focus on high‑skilled migrants who can boost productivity, address long‑term skill needs and complement Australia’s working‑age population.
In brief there has been a 24.8% increased allocation for the Subclass 189, a 31.9% increased allocation for Subclass186 and 7.5% increased allocation for the Subclass 190 visa classes.
The Department has now updated its website with the detailed planning levels for each stream and key changes outlined below.
Program composition for 2026-27
- Skill stream: 132,240 places (approximately 71% of the program)
- Family stream:52,460 places (approximately 28% of the program)
- Special Eligibility stream:300 places
Key Changes for the Skilled stream in 2026–27
The 2026–27 program includes several significant adjustments to planning levels across skilled visa categories when compared with 2025–26. Key changes include:
- Skilled Independent: increased from 16,900 places to 21,090 places
- Talent and Innovation: decreased from 5,300 places to 3,500 places
- Employer Sponsored: increased from 44,000 places to 58,040 places
- Regional Migration: decreased from 33,000 to 14,010
- State/Territory Nominated: increased from 33,000 places to 35,500 places.
Key Changes for the Family stream 2026–27
Only minor amendments have been made to the Family Stream for 2026–27, with modest adjustments across the main visa categories, these are noted below:
- Child visas: increased from 3,000 places to 3,500 places
- Parent visas: decreased from 8,500 places to 7,060 places
- Other Family visas: decreased from 500 places to 400 places.
What This Means for Regional Australia
Regional migration remains a critical part of the program, but the practical challenges continue.
States and territories rely heavily on their allocation of nomination places to plan their migration programs and respond to local workforce shortages. However, in the last program year, allocations were released later than expected, leaving states and territories with limited time to plan, prioritise occupations, and manage demand effectively.
For regional centres, this creates ongoing uncertainty:
- Workforce planning becomes reactive rather than strategic
- Employers face delays accessing skilled workers
- States may be forced to pause or close programs early once quotas fill
Unless allocations are released earlier in the program year, these pressures are likely to continue.
State and Territory Priorities – A More Nuanced Approach
We are also seeing a more sophisticated approach emerging from individual jurisdictions.
- Northern Territory (NT) continues to focus heavily on retention, prioritising applicants who are already living and working in the Territory and are more likely to remain long-term.
- New South Wales (NSW) is shifting toward better management of its allocation across multiple streams, focusing on a broader mix of occupations aligned with genuine labour market demand rather than over-reliance on a single profession or sector.
This evolution reflects a broader policy shift: migration is no longer just about filling jobs; it is about supporting sustainable population growth and long-term workforce stability.
Employer-Sponsored Migration – Rising Costs and Higher Thresholds
For employers, the 2026–27 program year brings important financial and compliance considerations.
Increase in Salary Thresholds
From 1 July 2026, the Core Skills Income Threshold (CSIT) will increase to:
- $79,499 (up from $76,515)
- This impacts key employer-sponsored pathways, including:
- Subclass 482 (Skills in Demand)
- Subclass 186 (Employer Nomination Scheme)
Higher thresholds mean:
- Employers must budget for increased salary commitments
- Some roles may no longer meet eligibility requirements
- Greater scrutiny on market salary alignment
Visa Application Charges
Visa application charges have already increased across most subclasses as part of annual indexation (generally around 3%), with some categories seeing more significant rises.
These cost increases:
- Add further financial pressure on applicants and employers
- Reinforce the need for well-prepared, decision-ready applications
- Increase the risk exposure where applications are unsuccessful
The Bigger Picture
While the headline number of 185,000 places may suggest stability, the reality is a program undergoing gradual but significant recalibration.
Key themes emerging include:
- A stronger emphasis on skilled migration outcomes
- Continued prioritisation of onshore applicants
- Increasing cost and compliance burdens for employers
- Greater competition for state nomination places
- A more strategic, targeted approach by states and territories
For regional Australia and employers alike, the challenge will be navigating these settings while still meeting workforce needs in a timely and cost-effective way.
Get in touch with one of our Immigration Professionals to assist you with your visa pathway and new financial year planning for 2026-27.