Author: Iman Khalid – Immigration Manager
The Australian Government has released the 2026–27 Federal Budget, outlining several migration and workforce measures expected to impact employers, skilled migrants, and industries reliant on overseas workers.
The permanent Migration Program will remain at 185,000 places, with approximately 70% allocated to skilled migration and 30% to family migration. More than 129,000 places are expected to be prioritised for migrants already living in Australia, while offshore allocations will focus primarily on highly skilled workers.
Although the Government continues to place downward pressure on net overseas migration, skilled migration remains a key part of Australia’s long-term economic and workforce strategy. Many industries across Australia are still experiencing significant labour shortages, particularly in healthcare, construction, infrastructure, engineering, hospitality, agriculture, and technology.
Skilled migrants continue to play an important role in supporting essential industries, strengthening productivity, and helping businesses address ongoing workforce gaps. As Australia’s population ages, overseas talent is expected to remain critical to supporting long-term economic growth and service delivery.
The continued prioritisation of onshore applicants also signals a stronger focus on retaining temporary migrants already contributing to the Australian workforce and supporting transitions to permanent residence pathways where eligible.
It is important to note that some measures have only been announced at a high level, with further details to be released in due course.
Net overseas migration forecast to decline
The Budget forecasts that net overseas migration will decrease to 245,000 in 2026–27 and reduce further to 225,000 in 2027–28. Arrivals from New Zealand are still expected to remain strong due to Australia’s favourable labour market conditions.
The Government has indicated that these measures are intended to balance migration levels with infrastructure capacity, housing pressures, and long-term workforce demand.
Skilled migration points test set for reform
The Government has announced plans to reform the skilled migration points test to place greater emphasis on younger migrants with higher qualifications, stronger skills, and greater long-term economic contribution potential.
The proposed direction reflects broader workforce objectives aimed at addressing labour shortages, improving productivity, and strengthening Australia’s future labour market.
While detailed reforms have not yet been released, the changes may increase competition across skilled migration pathways, particularly for applicants with advanced education, specialised experience, and strong employment prospects.
Applicants relying on long-term skilled migration programs should continue monitoring future announcements closely, as any changes to the points-tested system may influence their visa pathways.
Faster skills assessments and licensing reforms
A major workforce initiative announced in the Budget is an $85.2 million investment to improve skills assessments and occupational licensing processes for migrant trades workers.
The funding includes:
- Streamlined licensing pathways for trade occupations
- New skills assessment program for onshore visa holders through Trades Recognition Australia
- Increased oversight and accountability measures for assessing authorities
- Annual performance reporting requirements from 2027
The Government has also confirmed consultation will occur regarding the requirements for a Skills Migration Commissioner. These reforms are expected to help qualified trades workers enter the workforce faster while reducing delays associated with skills recognition and licensing processes. Businesses operating in sectors facing ongoing trade shortages may particularly benefit from improved workforce access and streamlined pathways.
Working Holiday Maker program reforms announced
The Budget confirms the Government intends to reform the Working Holiday Maker (WHM) program, including expanding the use of ballot systems for visa allocations.
The proposed reforms aim to:
- Better manage visa numbers
- Improve fairness in visa allocation
- Reduce barriers to work
- Support Australia’s national interests
Further details have not yet been released. Employers that rely on Working Holiday visa holders should continue monitoring future policy announcements.
Increased focus on migration compliance and integrity
The Budget also includes several measures aimed at strengthening migration compliance, visa integrity, and national security frameworks.
Measures include:
- Additional funding for the Australian Border Force
- New migration-related character and visa cancellation provisions
- Expanded immigration officer training
- Funding connected to community safety and detention arrangements
- Measures addressing antisemitism, violent extremism, and hate-related conduct within the migration system
The Government has also funded a pilot initiative aimed at addressing misuse of the Protection visa system through early legal assistance and informed merit-based guidance.
These developments reinforce the continued shift toward stronger compliance monitoring and increased scrutiny across Australia’s migration framework.
Updates to migrant support programs
Several migrant support initiatives also received funding and reform measures within the Budget. The Adult Migrant English Program (AMEP) will transition to a new model from 1 January 2029, with support expected to focus more heavily on migrants requiring formal English tuition and employment assistance.
Additional funding has also been allocated to:
- Extend support services for victims of trafficking and modern slavery
- Continue education and information programs supporting migrant worker protections and workplace rights awareness
What employers should consider
While some measures remain subject to further detail and implementation, employers should begin reviewing how these changes may affect:
- Workforce planning
- Recruitment strategies
- Sponsored workforce retention
- Skills and salary planning
- Sponsorship compliance obligations
- Long-term access to overseas talent
Businesses experiencing persistent workforce shortages may particularly benefit from monitoring future developments relating to skills recognition, licensing reforms, and skilled migration settings.
How Absolute Immigration Group can help
Australia’s migration framework continues to evolve alongside changing workforce and compliance priorities.
Absolute Immigration Group works with businesses across Australia to provide practical immigration support and long-term workforce planning strategies tailored to operational needs.
Our Migration Agents, Strategists and Immigration Lawyers assist employers with:
- Employer-sponsored visa pathways
- Workforce planning and immigration strategy
- Labour agreements and skilled migration solutions
- Sponsorship compliance obligations
- Skills assessment guidance
- Recruitment and retention planning for overseas workers
For tailored immigration advice or workforce planning support, contact Absolute Immigration Group at aisupport@absoluteimmigration.com.
