On May 12, 2026, the Australian government delivered its Federal Budget for the 2026–27 financial year, reaffirming a steady but targeted approach to migration while introducing a set of reforms aimed at system integrity, workforce alignment and long-term economic resilience:
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- Migration program settings and skilled visa reforms. The government confirmed that the permanent Migration Program will remain at 185,000 places, with over 70% allocated to the Skill stream and a continued emphasis on onshore applicants. The government reiterated its intention to reform the points test for skilled migration to prioritize younger, highly skilled and more educated applicants, alongside broader reforms to the Working Holiday Maker program.
- Skills recognition and innovation investment. An AUD 85.2 million commitment will streamline skills assessments and licensing for migrant trades workers, reducing workforce entry times by up to six months and supporting an additional 4,000 skilled workers annually. This is complemented by the National AI Plan, funding for an AI Accelerator program, and the establishment of a National Resilience and Science Council to guide over AUD 39 billion in research and development spending.
- Migration integrity and compliance measures. An AUD 167.4 million investment will enhance system capabilities, increase scrutiny of visa applications (particularly in the international student program) and expand education initiatives to improve migrant worker awareness of rights and obligations.
- Visa fees and salary threshold increases. From July 1, 2026, visa application charges are expected to increase and employer-sponsored visa salary thresholds, including the Core Skills Income Threshold (CSIT) and Specialist Skills Income Threshold (SSIT), will also increase.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen.
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