Federal Budget Update The Government will set the 2026–27...

Federal Budget Update

The Government will set the 2026–27 permanent Migration Program planning level at 185,000 places 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. 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. The Government will reform the Working Holiday Maker (WHM) program to better control numbers, reduce barriers to work, provide a fairer allocation of WHM visas, and support Australia’s national interests. This includes expanding the use of ballots in the WHM program to support better management of the program. The Government will provide $85.2 million over four years from 2026–27 to the Department of Employment and Workplace Relations for better recognition of migrant skills through faster, more flexible skills assessments including: $75.1 million over four years from 2026–27 for a new, modern skills assessment system for Trades Recognition Australia (TRA) to facilitate the integration of occupational licensing. This includes working with states and territories to pilot streamlined assessment‑to‑licensing pathways for priority trades such as electricians and plumbers. Costs will be fully recovered over the medium term through existing charging arrangements $5.6 million over three years from 2026–27 for TRA to deliver a new program of skills assessments for onshore visa holders, ensuring their existing qualifications and practical trade experience is recognised for the purposes of gaining employment and meeting workforce shortages. Costs will be fully recovered over the medium term through new cost recovery arrangements. $4.5 million over four years from 2026–27 to strengthen the regulatory oversight of Assessing Authorities to drive better performance, greater transparency and clearer accountability, including by requiring every Assessing Authority to publish an annual Assessing Authority Performance Report from 2027.