Australia’s migration system continues to evolve, with the Government introducing several important updates that will shape skilled migration, employer sponsorship, permanent residency pathways and visa costs throughout 2026–27.

From increased employer-sponsored visa allocations to higher visa application charges and proposed reforms to the points test, these changes reflect Australia’s focus on attracting skilled talent that can support the country’s long-term economic growth.

Here’s a breakdown of the key developments and what they mean for applicants and employers.

Australia’s Permanent Migration Program Remains at 185,000 Places

The Australian Government has confirmed that the 2026–27 Permanent Migration Program will remain at 185,000 places, maintaining a strong focus on skilled migration.

While the overall program size has not increased, the allocation of places within different visa categories has changed significantly.

The Government continues to prioritise skilled migration, with around 70% of permanent places dedicated to skilled visas and the remaining places allocated mainly to family migration.

Greater Focus on Migrants Already Living in Australia

One of the biggest shifts in this year’s program is the strong preference for onshore applicants.

More than 129,000 permanent migration places are expected to be allocated to people already living and working in Australia, while just over 55,000 places are intended for offshore applicants.

This approach supports workers who are already contributing to Australia’s economy while helping manage overall migration levels.

For many temporary visa holders—including Skills in Demand (Subclass 482), Graduate Visa (Subclass 485) and other skilled visa holders—this could create stronger opportunities to transition to permanent residency.

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Employer-Sponsored Migration Receives a Major Boost

Perhaps the most significant announcement for Australian businesses is the substantial increase in employer-sponsored migration places.

The Employer-Sponsored Program has grown from 44,000 places to more than 58,000, representing an increase of almost one-third.

This reflects the Government’s continued recognition that employers remain one of the most important sources of skilled workers, particularly in industries experiencing persistent labour shortages.

Employers recruiting workers in sectors such as:

• Healthcare
• Construction
• Hospitality
• Engineering
• Information Technology
• Skilled Trades

may benefit from improved access to permanent migration pathways for overseas employees.

More Opportunities for Skilled Independent and State-Nominated Applicants

The Government has also increased allocations for several points-tested visa pathways.

Both the Skilled Independent (Subclass 189) and State/Territory Nominated (Subclass 190) programs have received additional places, providing greater opportunities for highly skilled migrants with occupations in demand.

For applicants with strong English, recognised qualifications and competitive work experience, these pathways remain among Australia’s most attractive permanent migration options.

Regional Migration Places Reduced

While several skilled pathways have expanded, regional migration has moved in the opposite direction.

The allocation for Regional visas has been significantly reduced compared with previous years.

Although regional Australia continues to need skilled workers, the Government appears to be directing more permanent migration opportunities towards employer-sponsored and general skilled migration programs.

Applicants considering regional pathways should ensure they understand how these changes may affect their migration strategy.

Family Migration Continues, With Some Adjustments

Family migration remains an important part of Australia’s migration program.

Partner visa allocations have increased slightly, supporting family reunification for couples.

However, Parent and Other Family visa places have been reduced, meaning longer waiting periods may continue for many applicants in these categories.

Skilled Migration Reforms Continue

Alongside the migration planning levels, the Government has announced several reforms designed to improve how Australia selects skilled migrants.

These reforms focus on attracting applicants who can contribute immediately to Australia’s workforce and priority industries.

A New Points Test Is Coming

Australia is preparing to modernise the current points-tested migration system.

While the final details are yet to be released, future invitations are expected to place greater emphasis on:

• Younger applicants
• Higher qualifications
• Superior English language skills
• Occupations experiencing critical shortages

Applicants planning to apply for Subclass 189, 190 or 491 visas should closely monitor these changes.

Faster Skills Recognition for Trades

The Government has invested additional funding to speed up skills assessments for licensed trades.

Workers in occupations such as:

• Electricians
• Plumbers
• Builders
• Mechanical Trades
• Construction Professionals

may benefit from significantly shorter assessment and licensing timeframes.

This initiative is expected to help thousands of skilled tradespeople enter Australia’s workforce more quickly.

Skills in Demand (SID) Visa Continues to Expand

The Skills in Demand Visa has become Australia’s primary employer-sponsored temporary skilled visa.

The program now operates through three distinct streams:

• Specialist Skills
• Core Skills
• Essential Skills

Annual income thresholds will continue to increase in line with wage growth, ensuring overseas workers receive competitive salaries while supporting Australia’s labour market.

Priority Industries Remain the Focus

The Government continues to prioritise migration for occupations supporting Australia’s essential services and economic development.

Key sectors include:

• Healthcare
• Construction
• Engineering
• Education
• Technology

Applicants working in these industries are likely to remain well positioned under Australia’s evolving skilled migration framework.

Visa Application Charges Have Increased

From 1 July 2026, Australia introduced substantial increases to Visa Application Charges across most visa subclasses.

Many popular visa categories—including Skilled, Employer Sponsored, Student, Graduate and Partner visas—have increased by approximately 25%.

Some visa subclasses experienced much larger increases, particularly:

• Bridging Visa B
• Resident Return Visa

The higher application costs reinforce the importance of lodging complete, well-prepared applications to avoid unnecessary delays or repeat application expenses.

What These Changes Mean for You

Whether you’re an employer or an individual planning your migration journey, the 2026–27 updates send a clear message.

Australia is looking for migrants who:

• Have skills that address workforce shortages.
• Can contribute to the economy immediately.
• Meet higher quality standards for migration.
• Are prepared with strong documentation and planning.

For businesses, employer sponsorship is becoming an increasingly valuable recruitment pathway.

For migrants already living in Australia, the current settings may provide some of the strongest permanent residency opportunities seen in recent years.

For offshore applicants, strategic planning, strong English proficiency and an occupation aligned with Australia’s workforce needs will become increasingly important.

How Immigration Hotspot Will Help You 

Australia’s migration program continues to evolve, and keeping up with changing policies, planning levels and visa requirements can be challenging.

At Immigration Hotspot, we help both employers and migrants make informed decisions based on the latest migration updates.

Our experienced migration team can assist you with:

• Identifying the most suitable visa pathway.
• Employer sponsorship and Skills in Demand (SID) visa applications.
• Skilled Migration (Subclass 189, 190 and 491) strategies.
• Partner and Family visa applications.
• Skills assessments and documentation guidance.
• Long-term permanent residency planning.

Whether you’re planning your first move to Australia or looking to secure permanent residency, Immigration Hotspot is here to guide you every step of the way.