Federal Budget 2026–27: What the Migration Changes Mean for You

The Australian Government handed down the 2026–27 Federal Budget on 12 May 2026. For migrants, visa applicants, and temporary visa holders, this Budget contains some of the most significant announcements in recent years. Here is what you need to know — and what it means for your visa journey.

185,000 Permanent Migration Places for 2026–27

The Government has set the permanent Migration Program planning level at 185,000 places for 2026–27. This is a continuation of recent migration settings, but the breakdown of how those places are allocated tells a more important story.

More than 70% of all places — 132,240 in total — have been allocated to the Skill stream. This is the largest proportion the Skill stream has received and signals that the Government sees skilled migration as central to Australia’s economic future.

Onshore Migrants Get Top Priority

The most significant announcement for people already living in Australia is this: 129,590 of the 185,000 permanent migration places have been reserved specifically for onshore applicants — people who are already in Australia on temporary visas.

This is a substantial shift. If you are currently in Australia on a subclass 482 (Temporary Skill Shortage), a 491 (Skilled Work Regional), a 500 (Student Visa), or any other temporary visa and you are looking towards permanent residency, this Budget has created real opportunities.

The remaining 55,110 offshore places will be primarily allocated to high-skilled migrants who address Australia’s long-term skill needs.

The Points Test Is Being Reformed

Almost two-thirds of permanent skilled migrants are currently selected through points-tested visas (subclasses 189, 190, and 491). The Government has announced a reform of the points test to better identify migrants who drive productivity and Australia’s long-term economic growth.

The reformed points test will place greater weight on:

• Educational qualifications
• English language proficiency
• Age (younger applicants will be rewarded)

If you are planning a points-tested visa application, this is the time to seek professional advice. A registered migration agent can help you assess your current points score and identify whether upskilling or additional qualifications could strengthen your application before lodgement.

Faster Skills Assessments for Tradespeople

The Government has allocated $85.2 million to modernise Trades Recognition Australia (TRA), the authority responsible for assessing the qualifications of skilled tradespeople.

Key improvements include:

• A new, modern skills assessment system with faster processing times
• Streamlined assessment-to-licensing pathways for priority trades, including electricians and plumbers
• A new program of skills assessments for onshore visa holders whose qualifications and practical experience were previously not formally recognised
• Stronger regulatory oversight of Assessing Authorities to improve transparency and accountability

For tradespeople who have been stuck waiting for a skills assessment, or who were unsure whether their overseas experience would be recognised, these changes are long overdue and very welcome.

Working Holiday Maker Program Reform

The Working Holiday Maker (WHM) program is also being reformed. The Government will introduce ballots for some countries, aimed at better managing the number of Working Holiday visas granted and providing a fairer allocation of places.

If you are from a country that currently participates in the Working Holiday program, you should check whether the ballot system applies to your country and what the new allocation arrangements mean for your plans.

Student Visa Applicants: Expect More Scrutiny

The Government has allocated $19.8 million specifically to increase scrutiny of student visa applications, both onshore and offshore. This is part of a broader $167.4 million investment in strengthening the integrity of Australia’s migration system.

If you are applying for a student visa, ensure that your application is well-documented, your financial evidence is solid, and your genuine intention to study is clearly demonstrated. Mistakes or incomplete applications are more likely to face delays or refusals in this environment.

Temporary Graduate Visa: Fee Already Doubled

This was announced before the Budget but is worth noting: from 1 March 2026, the visa application charge for Temporary Graduate visas (subclass 485) was increased by 100%. This affects international students who plan to remain in Australia after completing their studies.

The fee increase applies to all applicants except eligible Pacific Island and Timor-Leste nationals.

Passenger Movement Charge Increase

From 1 January 2027, the Passenger Movement Charge — the fee paid by all passengers departing Australia by air or sea — will increase from $70 to $80. This affects anyone travelling internationally from Australia, including temporary and permanent visa holders.

What Should You Do Now?

If you are on a temporary visa and are thinking about permanent residency, this Budget has created significant new opportunities — particularly for onshore applicants. But timing matters. State nomination programs for the 491 and 190 visas are reopening for the new financial year from 1 July 2026, and places fill quickly.

The right time to speak to a migration agent is before you apply, not after a refusal.

At OVEC, our registered migration agent has been helping clients navigate Australia’s migration system for over 15 years. We can assess your eligibility, advise on the best visa pathway for your circumstances, and guide you through the application process.

📞 Call us on 0430 586 030

📋 Book a consultation: https://calendar.app.google/B8EBVAL4mXhh4Etg9

Sohail Cheema | Registered Migration Agent | MARN 1170438 | ovec.com.au

Source: Budget Measures Budget Paper No. 2, 2026–27, Commonwealth of Australia, 12 May 2026.