FY2026–27 Federal Budget Updates and Skilled Migration...

@gregormendel

5mo ago Australia

FY2026–27 Federal Budget Updates and Skilled Migration Points Test Changes

Budget is released on 12 May 2026 7:30pm AEST. You can download key budget documents here.

1. FY2026-27 Planning Level Announcement

The Government will set the 2026–27 permanent Migration Program planning level at 185,000 places (unchanged from last FY) and allocate 132,240 places (over 70 per cent) to the Skill stream.

Across both the Skill and Family streams of the permanent Migration Program, the Government will prioritise applications from onshore migrants, allocating 129,590 places to migrants already living in Australia, with an additional 300 places allocated to Special Eligibility.

The remaining 55,110 offshore places will predominately be allocated to high‑skilled migrants that help address Australia’s long‑term skill needs. This measure will place downward pressure on net overseas migration. This is roughly 30% of the total planning level of 185000. This is not a dramatic change as offshore is usually between 30% and 40% of overall planning level

What does this planning level means? Planning level of 185000 (and 132K for Skilled visa) remains unchanged from last FY. This is good news as this refers to the total amount of visas that will be granted in the FY, and there are no cuts. Now we have to wait for Subclass planning levels as well as State nomination allocation quota to get an idea as to the impact on visa processing times, as well how many new invitations one can expect in FY2026-27.

The 30% limit for offshore is not too worrying as historically offshore grants account for roughly 30% to 40% of total planning level anyways.

2. New Points Test System

The Government will reform the permanent migration points test to better identify migrants who drive productivity and Australia’s long‑term prosperity. Almost two‑thirds of permanent skilled migrants are currently selected through points tested visas. The points test will be optimised to select better educated, higher‑skilled and younger migrants overall. No further detail has been released by the government.

3. Net overseas migration

Net overseas migration (NOM) has declined by around 45 per cent from its peak in 2022–23 and is forecast to continue declining through to 2027–28. NOM is forecast to be moderately higher than previously expected in 2025–26 and 2026–27, which reflects that migrants on temporary visas are departing Australia at lower rates than in the past. Arrivals of New Zealand citizens are also expected to remain strong, reflecting Australia’s relatively favourable labour market conditions. Migration policy changes in this Budget will place downward pressure on NOM.

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Comments 7

@sparminderpal 5mo ago

WHAT ABOUT THAT EOI'S WHICH IS ALREADY LODGED?

0 replies

@abdul9119 5mo ago

@gregormendel Thanks for your efforts. What it means for older 190 files. I have been waiting for 23 months. Will my case be cleared in comning months?

3 replies

@cloudqueen 5mo ago

@gregormendel @biotechy - what does this mean for offshore candidates whose visas have been lodged and are waiting for grant?

1 replies

@ad_2723 5mo ago

@gregormendel @biotechy - All it says is that a new points system is in the works. Do you think it will atleast be a year or 2 before they can fully implement something like this ?

1 replies

@biotechy 5mo ago

Better recognising skills

The Government is investing $85.2 million to accelerate skills assessments for migrant trades workers and to accelerate occupational licensing, making it faster for them to enter the workforce. The Government is also reforming the permanent migration points test to select better educated, higher-skilled and younger migrants. University students with relevant TAFE qualifications will benefit from quicker degrees through a National Credit Recognition Framework.

1 replies

@biotechy 5mo ago

What we know so far and what to expect

Tonight's federal budget is shaping up as a wide-ranging package targeting housing, tax reform, defence and cost of living.

The government has signalled a push to address intergenerational inequity, with changes to capital gains tax, negative gearing and family trust arrangements on the table
In transport, electric vehicles under $91,387 will no longer be exempt from the fringe benefits tax, with the government slowly phasing out the incentive to a 25 per cent discount over a two-year period
- From April 2027, the full exemption will be limited to vehicles under $75,000. Electric vehicles between $75,000 and $91,387 will instead receive a permanent 25 per cent discount on the fringe benefits tax.
- From April 2029, all EVs under $91,387 will receive only the 25 per cent discount.
Defence spending is set to rise by $53 billion over the next decade
A $10 billion fuel package will lift Australia's minimum fuel stockholding requirement to 50 days
Housing is another major focus, with a $2 billion infrastructure fund expected to support up to 65,000 new homes
On tax, Australians will be able to claim a $1,000 instant deduction without receipts on their 2026–27 return
The budget also includes NDIS reforms and $60 million to expand access to community housing for young people
The government is set to announce an extra $3.8 billion for Victoria's Suburban Rail Loop project

0 replies

@gregormendel 5mo ago

@all

0 replies

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FY2026–27 Federal Budget Updates and Skilled Migration Points Test Changes

1. FY2026-27 Planning Level Announcement

2. New Points Test System

3. Net overseas migration

Useful Resources

Comments 7

Better recognising skills

What we know so far and what to expect

We Offer Consultation

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