On 12 May 2026, the Australian Government set the 2026–27 permanent Migration Program at 185,000 places — exactly the same total as 2025–26, with the same approximate 70:30 split between the Skilled and Family streams.
Most of the commentary since has led with one number: regional places cut by 57%. That is accurate, but on its own it is misleading. The more useful reading is that the skilled program did not shrink at all. It was redistributed.
The Number That Reframes Everything
The total Skilled Migration Program moved from 132,200 places in 2025–26 to 132,240 in 2026–27. That is an increase of forty places across the entire country.
So this is not a contraction. Roughly 19,000 places were lifted out of one category and placed into others. The pie is the same size. The slices are cut differently.
Where the Places Actually Went
| Category | 2025–26 | 2026–27 | Change |
| Employer Sponsored (186 & 494) | 44,000 | 58,040 | +31.9% |
| Skilled Independent (189) | 16,900 | 21,090 | +24.8% |
| State/Territory Nominated (190) | 33,000 | 35,500 | +7.6% |
| Regional (491) | 33,000 | 14,110 | −57.2% |
| Talent and Innovation | 5,300 | 3,500 | −34.0% |
| Total Skilled Program | 132,200 | 132,240 | +40 places |
A note on categories, because this is commonly reported incorrectly. In the Department’s planning levels, Regional means subclass 491 only. The subclass 494 is a regional visa, but it sits inside the Employer Sponsored category because it is employer sponsored. Likewise, State/Territory Nominated means subclass 190 only. Getting this wrong makes the regional cut look either smaller or larger than it is.
The Talent and Innovation reduction is also less dramatic than it appears. That category includes the Business Innovation & Investment visas, which are closed to new applications, and the Department has adjusted the prior-year figure to reflect that.
The Clearest Signal in the Document
Of the 185,000 total places, 129,590 are allocated to migrants already living in Australia. Only 55,110 are for applicants offshore, and the Department has said those will prioritise high-skilled applicants who address long-term skill needs.
Roughly seven in ten permanent places this year are reserved for people already onshore. Read alongside the category shifts, the direction is unambiguous: the program is being pointed at people who are already here, already working, and already contributing.
What This Means Depending on Where You Sit
If you are onshore and employed in a skilled role, this is the strongest position in the program. Employer Sponsored gained more places than any other category — over 14,000 additional places. If you have an employer willing to sponsor, or could realistically find one, that pathway has materially more capacity than last year.
If you have a competitive points score, the Skilled Independent 189 increase of nearly 25% is significant. The 189 has been extraordinarily difficult for several years because of limited places, not because of a lack of qualified candidates. More places should mean movement, though it will not make a 65-point EOI competitive.
If your plan was built around the 491, this is the year to reassess. Fewer than half the places exist compared with last year. The pathway has not closed and states still hold 491 allocations, but the national ceiling is far lower and competition will be correspondingly harder.
If you are offshore with no Australian connection, the offshore allocation of 55,110 across all streams is the binding constraint. The realistic routes are a high-points 189, or securing employer sponsorship.
What Has Not Changed
It is worth being clear about the limits of this information. Planning levels are ceilings, not targets, and not guarantees. They tell you how many places exist. They tell you nothing about:
- Whether your occupation is on a relevant list
- Whether your points score will be competitive
- Whether a state will nominate you
- How quickly applications will be processed
A larger allocation in a category does not mean easier. It means more capacity. Those are different things, and conflating them is how people end up waiting on an invitation that was never realistically coming.
What to Do With This
- Work out which category you actually fit, using the Department’s definitions rather than the visa’s marketing name. If you are chasing a 494, you are competing in Employer Sponsored, not Regional.
- If you are onshore and working, investigate sponsorship seriously. It is where the capacity went.
- Recalculate your points honestly. The 189 has more room this year; that only helps if you are near the competitive range.
- If you are relying on the 491, build a second option. Not because it is gone, but because the margin for error is much thinner.
- Watch the state and territory allocations as they are published. The national figure sets the ceiling; individual states decide who actually gets nominated, and their settings change each year.
Talk to a Registered Migration Agent
Program settings moved meaningfully this year, and the strategy that made sense in 2025–26 may not be the right one now. If you want to work out which pathway your circumstances genuinely support — rather than which one you hoped for — we can go through it with you.
OVEC is led by Sohail Cheema, a Registered Migration Agent (MARN 1170438) based in Canberra, assisting clients across Australia and overseas.
Book a consultation to discuss your options, or call 0430 586 030.
You may also want to read our guides to skilled visas (189, 190, 491), the Skills in Demand visa (482), and Tasmania’s 2026–27 nomination allocation.
This article provides general information only and does not constitute immigration assistance for your individual circumstances. All figures are drawn from the Department of Home Affairs Permanent Migration Program planning levels, announced 12 May 2026. Planning levels are ceilings rather than guarantees and are subject to change — always confirm current settings on the Department’s website before acting.
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