Federal Budget updates reveal changes to skilled migration points test
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The Australian Government has confirmed the permanent Migration Program planning level will remain at 185,000 places for the 2026–27 financial year, unchanged from the previous year.
More than 70 per cent of places (132,240) will be allocated to the Skilled stream, focusing on migrants who can support Australia’s workforce and long-term economic needs.
The government will also prioritise migrants already living in Australia, with 129,590 places allocated to onshore applicants across skilled and family migration categories. A further 300 places will be reserved for special eligibility cases.
Around 55,110 places will be available for offshore applicants, mainly targeting highly skilled migrants. This represents about 30 per cent of the total program, which is consistent with previous years where offshore migration has generally made up around 30–40 per cent of places.
The unchanged migration cap means there are no overall cuts to permanent migration numbers. Further details on specific visa allocations and state nomination places are expected to provide more insight into future invitation rounds and processing times.
Changes Planned for Skilled Migration Points Test
The government will also reform the permanent skilled migration points system to focus more on selecting migrants with stronger education, higher skills and greater long-term contribution potential.
Almost two-thirds of permanent skilled migrants are currently selected through points-tested visas. However, the government has not yet released details on how the new system will operate.
Net Overseas Migration Expected to Continue Falling
Net overseas migration has already dropped by around 45 per cent from its peak in 2022–23 and is expected to continue declining until 2027–28.
The government forecasts migration numbers in 2025–26 and 2026–27 may be slightly higher than earlier estimates, mainly because temporary migrants are leaving Australia at lower rates and arrivals from New Zealand remain strong.
Overall, the latest migration measures are expected to gradually reduce pressure on net overseas migration while maintaining a focus on skilled workers needed by Australia’s economy.
Source : https://smartvisaguide.com
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