The Australian Government handed down the 2026–27 Federal Budget on 12 May 2026. For anyone planning to migrate, currently on a visa, or preparing an application, several announcements have direct and immediate relevance.
Here is what changed, what it means, and what you should be aware of before you apply.
Migration Program Set at 185,000 Places for 2026–27
The permanent Migration Program planning level for 2026–27 has been set at 185,000 places.
Of those, 132,240 places (more than 70 per cent) have been allocated to the Skill stream. That is a clear signal of the government’s continued focus on skills-based migration as the primary driver of the permanent program.
The Budget also confirmed a deliberate shift toward onshore applicants. 129,590 places across both the Skill and Family streams have been allocated to migrants already living in Australia, with an additional 300 places for Special Eligibility. The remaining 55,110 offshore places will predominantly go to high-skilled migrants who address Australia’s long-term workforce needs.
The government stated this measure is designed to place downward pressure on net overseas migration, a clear policy direction that applicants, particularly those offshore, need to factor into their planning.
Points Test Reform: Selecting for Productivity
The Budget confirmed the government will reform the permanent migration points test to better identify migrants who contribute to productivity and long-term prosperity.
The reform is aimed at selecting better educated, higher-skilled and younger migrants overall. Almost two-thirds of permanent skilled migrants are currently selected through points-tested visas, making this one of the most consequential structural changes in the skilled migration program.
The specific changes to the points test have not yet been legislated, but the Budget Paper confirms the reform is underway. If you are preparing an Expression of Interest or building your points profile, this is an important development to monitor closely as the details are released.
Temporary Graduate Visa (485) Fee Has Already Doubled
This change is already in effect.
The government increased the visa application charge for the Temporary Graduate visa (subclass 485) by 100 per cent from 1 March 2026. This applies to all eligible applicants, with the exception of applicants from Pacific Island nations and Timor-Leste.
The measure was provisioned in the 2025–26 MYEFO and is estimated to generate $1.2 billion in additional receipts over five years. For graduates currently planning to apply for a 485, this means the application now costs significantly more than it did before March 2026.
If you are approaching the end of your Student visa and considering a 485 application, the new fee applies to you unless you are from an exempt Pacific Island country or Timor-Leste.
$85.2 Million to Modernise Skills Assessments
One of the most practical announcements for skilled workers is a $85.2 million investment over four years from 2026–27 to reform how Australia recognises migrant skills.
The funding is allocated across three initiatives:
$75.1 million goes to building a new, modern skills assessment system for Trades Recognition Australia (TRA). Critically, this includes working with states and territories to pilot streamlined assessment-to-licensing pathways for priority trades — specifically electricians and plumbers are named in the Budget Paper. For trade workers, this is significant: the current gap between completing a skills assessment and obtaining a licence has been a major barrier to employment. This initiative is intended to close it.
$5.6 million over three years will fund a new program of TRA skills assessments specifically for onshore visa holders, recognising their existing qualifications and practical trade experience for employment purposes. This targets people already in Australia who have been unable to have their skills formally recognised.
$4.5 million over four years strengthens regulatory oversight of all Assessing Authorities, including requiring every authority to publish an annual performance report from 2027. This introduces greater transparency and accountability to a system that has long been criticised for inconsistency.
The Budget also noted that the Department of Employment and Workplace Relations will consult on the requirements for a skills migration commissioner — a potential new oversight role for the migration and skills assessment system.
Working Holiday Maker Program to Be Reformed
The Budget confirmed the government will reform the Working Holiday Maker (WHM) program. The stated goals are to better control numbers, reduce barriers to work, provide a fairer allocation of WHM visas and support national interests.
The most notable structural change is the expansion of ballots in the WHM program. Ballot systems are already used in some WHM arrangements; the reform will extend this model more broadly as a mechanism to manage program numbers.
Full details of how the ballot expansion will operate — which countries it affects, how selection will work, and the timeline — have not yet been announced. If you are planning a Working Holiday visa, it is worth monitoring this closely as the legislative and policy detail is released.
$167.4 Million to Strengthen Migration System Integrity
The Budget allocates $167.4 million over four years to strengthen the integrity of the migration system. This funding spans several specific measures.
$74.2 million goes to the Federal Court of Australia and the Federal Circuit and Family Court of Australia to address misuse of the protection visa system. The investment is designed to increase efficiency in merits and judicial review processes, and to establish a pre-filing pilot for a duty lawyer legal assistance service in Sydney and Melbourne registries.
$46.4 million will strengthen systems capability across the migration system — a broad investment in technology and administrative infrastructure.
$27 million over two years will continue information and education activities to improve migrant workers’ awareness of workplace safeguards and protections under migration law. This reflects ongoing government concern about exploitation of sponsored workers.
$19.8 million over four years is specifically directed at enhanced scrutiny of onshore and offshore student visa applications to ensure the integrity of the international student visa system. This follows a period of significantly increased refusal rates and the recent ART reforms. Applicants and those advising them should expect a more thorough assessment environment to continue.
New Visa Refusal and Cancellation Grounds for Character
The Budget included funding to implement the migration elements of the Combatting Antisemitism, Hate and Extremism (Criminal and Migration Laws) Act 2026.
$13.6 million over five years from 2025–26 has been allocated to the Department of Home Affairs to implement new visa refusal and cancellation grounds, and new character test provisions under the Migration Act 1958. This is a legislative change already in place, with the Budget funding the operational implementation.
What This Means for You
The 2026–27 Budget reinforces several clear directions in Australian migration policy:
The permanent program continues to strongly prioritise skilled migration and onshore applicants. If you are already in Australia and working toward permanent residency, the allocation of over 70 per cent of places to the Skill stream and the strong preference for onshore candidates works in your favour.
The points test reform means the criteria for receiving a skilled visa invitation are changing. The exact nature of those changes will define who receives invitations in the coming program years. Preparing a strong, well-documented profile now — before the new criteria are finalised — gives you the best position to adapt quickly.
The 485 fee has already increased. If you have not yet applied, you are paying the higher rate. Factor this into your budget.
Trade workers stand to benefit meaningfully from the TRA reforms, particularly the assessment-to-licensing pilot for electricians and plumbers. If your occupation falls into a priority trade, the pathway to employment recognition in Australia is being actively simplified.
Enhanced student visa scrutiny is ongoing. A well-prepared, genuine application matters more than ever.
Frequently Asked Questions
Did the Budget reduce the number of skilled migration places? No. The government set the 2026–27 Migration Program at 185,000 places with 132,240 allocated to the Skill stream — over 70 per cent. The program continues to prioritise skilled migration strongly.
Has the 485 visa already gone up in price? Yes. The Temporary Graduate visa (subclass 485) application fee doubled with effect from 1 March 2026. This applies to all eligible applicants except those from Pacific Island nations and Timor-Leste.
What does the points test reform mean for my application? The Budget confirmed the points test will be updated to favour better educated, higher-skilled and younger migrants. The legislative detail has not yet been released. Anyone currently building their points profile should monitor the changes closely when announced.
Will the Working Holiday Maker ballot affect my plans? The Budget confirmed ballots will be expanded in the WHM program to better manage numbers. The specific countries and timelines for the expansion have not yet been announced.
A Note on Sources
All information in this post is sourced directly from Budget Paper No. 1: Budget Strategy and Outlook 2026–27 and Budget Paper No. 2: Budget Measures 2026–27, published by the Commonwealth of Australia on 12 May 2026. No information has been sourced from third-party commentary or migration agency interpretation. Where full legislative or operational detail has not yet been released by the government, this post says so explicitly.
Final Thoughts
The 2026–27 Budget contains some of the most significant structural changes to Australian migration policy in several years — from a reformed points test, to higher graduate visa fees, to expanded working holiday ballots, and a substantial investment in fixing how trades skills are recognised.
For anyone mid-journey in the migration system, the message is clear. The environment is changing, and preparation matters.
Seven Law Group can help you understand exactly how these Budget measures affect your specific situation. Contact our registered migration agents today for a personalised assessment.
This post is based solely on official 2026–27 Budget Papers (Budget Paper No. 1 and Budget Paper No. 2), published by the Commonwealth of Australia on 12 May 2026. It provides general information only and does not constitute migration advice. Seven Law Group — Registered Migration Agents.