Migration Program Planning level / Net Overseas Migration
The Government has left the 2026–27 permanent Migration Program planning level at 185,000 places, while maintaining the approximate 70% Skilled / 30% Family program number split.
Across both programs the Government will prioritise applications from onshore migrants, allocating 129,590 places to migrants already living in Australia (also 70%). The remaining 55,110 offshore places will predominately be allocated to high‑skilled migrants to assist in addressing Australia’s long‑term skill needs. This is intended to place downward pressure on net overseas migration.
Net Overseas Migration (NOM) is forecast to drop to 245,000 in 2026–27 and decline further to 225,000 in 2027–28. Arrivals of New Zealand citizens are also expected to remain strong, reflecting Australia’s relatively favourable labour market conditions.
Points test
The permanent migration Points Test will be optimised to better select more highly educated, higher-skilled and younger migrants overall, who drive productivity and Australia’s long term prosperity. Currently almost two thirds of permanent skilled migrants are selected through points tested visas. No further details of these changes have been announced in the Budget.
The Government will invest $85.2 million to deliver faster skills assessments for migrant trades workers and to accelerate occupational licensing, with the aim to facilitate an additional 4,000 skilled trades workers into the workforce per year.
These funds will be allocated to the Department of Employment and Workplace Relations to be used in following way:
• $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.
• $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.
• $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.
The Department of Employment and Workplace Relations will also consult on requirements for a skills migration commissioner
National Credit Recognition Framework – the Australian Tertiary Education Commission will develop the Framework to strengthen the recognition of VET qualifications and reduce unnecessary repetition. University students with relevant vocational education and training (VET) qualifications will have the length and cost of their study reduced SOURCE | Budget Paper
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