Summary
The permanent migration program stays capped at 185,000 places — over 70% reserved for skilled migrants; onshore applicants will be prioritised over offshore in both the skill and family streams from 2026-27
4,000 additional skilled trades workers per year — the government will spend AUD $85.2 million to accelerate skills assessments and occupational licensing, cutting up to six months from the time skilled trades workers take to enter the Australian workforce
Working Holiday Maker ballots are expanding — the government will expand the use of ballots in the WHM program to better manage numbers; details vary by country and will be announced progressively
Australia’s 2026-27 Federal Budget, delivered in May 2026, confirmed a significant reshaping of how Australia selects and manages its skilled migration program. The changes focus on quality over quantity — selecting younger, higher-skilled applicants — and on removing barriers that have slowed skilled migrants from entering the workforce.
This guide covers the key changes and what they mean in practice for skilled workers, tradespeople, Working Holiday Makers and students planning to come to Australia.
Permanent migration program: 185,000 places, same cap
The permanent migration program cap remains at 185,000 places for 2026-27 — unchanged from 2025-26. More than 70% of those places are reserved for skilled migrants. The remaining places go to the family stream.
Onshore priority: The budget confirmed the government will prioritise applications from migrants already in Australia (onshore) over those applying from overseas (offshore) across both the skill and family streams. Of the remaining 55,110 offshore places, most will be allocated to high-skilled migrants who “help address Australia’s long-term skill needs.”
What this means: If you are already in Australia on a temporary visa (skilled, student, WHM), you are in a stronger position than an offshore applicant at the same points level. This reinforces the value of being on the ground in Australia when applying for permanent residence.
Faster skills assessments for trades workers
The most significant budget measure for skilled tradespeople is AUD $85.2 million to deliver faster skills assessments and accelerate occupational licensing.
The problem being solved: Skilled trades workers — particularly those with construction and electrical backgrounds — have faced delays of up to six months between arriving in Australia and being legally permitted to work in their trade. Skills assessment processes, which differ by state and occupation, have been a major bottleneck.
The fix: A new program of skills assessments for onshore visa holders will be delivered by Trades Recognition Australia (TRA). The government says this will cut up to six months from the time trades workers take to enter the workforce and facilitate up to 4,000 additional skilled trades workers entering the workforce per year.
Also funded: AUD $27.0 million over two years to teach migrant workers about workplace safeguards, protections and compliance measures related to migration law — addressing the problem of migrant workers being exploited through lack of knowledge of their rights.
Points test reforms
The government announced it will “optimise” the permanent migration points test — the system that selects almost two-thirds of permanent skilled migrants. The stated aim is to select candidates who are “better educated”, “higher-skilled” and younger.
The specific changes to how points are allocated were not fully detailed in the May 2026 budget papers. Further detail is expected to be released progressively throughout 2026-27.
What to watch: Any changes to points allocations for age, qualifications, Australian work experience or English language proficiency would directly affect who receives an Invitation to Apply (ITA) from SkillSelect. Check immi.homeaffairs.gov.au for updates.
Working Holiday Maker (WHM) changes
The budget confirmed changes to the Working Holiday Maker program aimed at “better controlling numbers”, reducing barriers to work and providing a “fairer allocation” of WHM visas.
Ballots expanding: The government will expand the use of ballots in the WHM program. Ballots are already used for some nationalities (including Colombia on the 462 visa) where demand exceeds the annual cap. Ballots will now be more widely used to manage the program.
What this means for WHMs: If you are from a country that has not previously used a ballot system for the 417 or 462 visa, your country may move to a ballot system in 2026-27. Check the current status at immi.homeaffairs.gov.au/whm-program/status-of-country-caps.
English language program reforms
The Adult Migrant English Program (AMEP) — which has operated since 1948 — will be reformed. From 2029, a new English-language program will replace it, offering:
- Flexible tuition (in-person and online)
- Student supports for employment outcomes
- Targeted delivery to migrants “most in need”
Treasurer Jim Chalmers acknowledged the program “is ready for reform” — describing English proficiency as critical to employment and social cohesion.
What this means: If you are a permanent resident or humanitarian entrant currently enrolled in or considering the AMEP, the current program continues until 2029. The new program aims to be more flexible and outcome-focused.
Student visa integrity measures
The budget allocated AUD $19.8 million over four years for enhanced scrutiny of onshore and offshore student visa applications. This follows two years of student visa tightening — the 2026 National Planning Level for international students rose to 295,000 places (from 270,000 in 2025) but stricter visa checks remain in place.
Australian-schooled students exempt from cap: From 2026, international students who attended Australian secondary school, or who come through TAFE or recognised pathway providers into public universities, are exempt from the National Planning Level cap.
What it means for sending money home
For skilled workers and WHMs in Australia, OrbitRemit supports fee-free and low-cost transfers home across all major corridors.
- AUD to INR: fee-free — India is Australia’s largest source of skilled migrants
- AUD to PHP: fee-free to GCash and mobile wallets — Philippines is a major WHM and skilled worker source
- AUD to NPR: fee-free — Nepal is a fast-growing skilled worker source
- AUD to VND: fee-free — Vietnam is a major student and WHM source
- Flat AUD $4 on most other corridors
- Fee-free above AUD $10,000
- Over 85% of transfers to Asia-Pacific destinations arrive within 2 hours
FAQ’s (frequently asked questions)
How many permanent migrants will Australia accept in 2026-27?
185,000 — the same cap as 2025-26. Over 70% are in the skilled stream. Onshore applicants will be prioritised over offshore in both the skill and family streams.
What changed for trades workers in the 2026 budget?
The government committed AUD $85.2 million to faster skills assessments and occupational licensing, cutting up to six months from the time trades workers take to enter the workforce. Up to 4,000 additional skilled trades workers per year are expected to benefit.
Are WHM ballot changes confirmed for all nationalities?
No. The government confirmed ballots will be expanded but has not announced which nationalities or visa subclasses will be affected. Check immi.homeaffairs.gov.au/whm-program/status-of-country-caps for current country-by-country status.
What is the Adult Migrant English Program (AMEP)?
A government-funded English language program for permanent residents and humanitarian entrants, operating since 1948. It will be replaced by a new flexible program from 2029.
Where can I find the latest skilled migration points test requirements?
At immi.homeaffairs.gov.au/visas/getting-a-visa/visa-listing/skilled-independent-189 — the points test allocation will be updated progressively as the “optimisation” is implemented.
This guide is based on the 2026-27 Federal Budget papers and SBS News reporting (12 May 2026). Migration policies are subject to change — always verify current requirements at immi.homeaffairs.gov.au. Last updated August 2026.
Sources: SBS News — 2026-27 federal budget migration numbers: What’s changing and who’s affected (12 May 2026) | Department of Home Affairs — 2026-27 Budget measures (homeaffairs.gov.au)
