Insights

Federal Budget 2026-27 and Immigration Impacts

Written by Tanja Djokic | May 13, 2026 2:44:42 AM

The Federal Budget, delivered on Tuesday 12 May 2026, has introduced some key updates to the Australia's migration system.

The Government’s main plan is to revamp the permanent skilled migration point-test program to target better education, higher skilled, and younger migrants to address skills shortages. Funding announcements include investing in strengthening the integrity of the migration system, including further education to improve migration workers’ awareness of workplace safeguards, and improving access to formal English tuition for migrants most in need.

Key announcements are summarised below, with further information and detail to be released in due course.

Migration Program Planning level

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 aim to 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.

Points test

The permanent migration Points Test will be optimised to better select more highly educated, higher-skilled and younger migrants, who are expected to drive productivity and Australia’s long-term prosperity. Currently almost two thirds of permanent skilled migrants are selected through points tested visas.

Recognition of overseas qualifications

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.

National Credit Recognition Framework - the Australian Tertiary Education Commission will also 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.

Addressing Misuse of the Protection Visa System

The Government will fund a pilot 'Addressing Misuse of the Protection Visa System' at a cost of $3.9m in total, including $0.9m in 2026–27. The pilot program will fund migration duty lawyers to deliver pre-filing legal assistance in migration matters before the Federal Circuit and Family Court of Australia and help prospective judicial review applicants make informed, merit-based decisions on filing protection visa claims.

Working Holiday Visa Program

The Government will further reform the Working Holiday Maker (WHM) program and expand the use of ballots to better control numbers. This is expected to reduce barriers to work, provide a fairer allocation of WHM visas and better support Australia’s national interests.

Australian Border Force and National Security

The Australian Border Force will receive supplementary funding of $270 million in 2026–27 to assist in combatting the influences of antisemitism, violent extremism and hate in Australian communities, and additional training to immigration and visa officers in relation to antisemitism and hate related behaviour.

Commonwealth Community Safety Order Scheme will also be implemented, through which the Minister for Immigration and Citizenship can apply to the Supreme Court in the relevant jurisdiction for the making of supervision or detention orders, in relation to certain non-citizens who pose a risk of harm to the community.

Adult Migrant English Service

The Government will introduce changes to the Adult Migrant English program, including changes to program eligibility, to target clients most in need of formal English tuition. A new program model will commence from 1 January 2029, with flexible tuition and student supports to improve English language, employment and social cohesion outcomes for migrants.

Support for Trafficked People Program Extension

The Government has extended the Support for Trafficked People Program Additional Referral Pathway (ARP) through to 30 June 2027. The ARP ensures victim-survivors of human trafficking and modern slavery can access case-managed support, including legal and migration advice, financial assistance, medical treatment and safe accommodation, without needing to engage with law enforcement.

Protecting Migrant Workers - Information and Education Program Extension

The Government is providing $27 million over two years from 2026–27 to extend the Protecting Migrant Workers – Information and Education grants program. These grants support targeted information and education activities to provide migrant workers with accurate and appropriate information about workplace safeguards, protections and compliance measures related to migration laws.

 

Tanja Djokic, Principal Solicitor, TD Migration Consulting
Tanja Djokic is a Principal Solicitor of TD Migration Consulting, law practice specialising in immigration law. Tanja has extensive experience working with both corporate and individual clients and focuses her business practice on providing high quality immigration advice. Tanja is admitted to practice in the Supreme Court of NSW, High Court of Australia and is also admitted as a Solicitor and Barrister of High Court of New Zealand. Tanja is also a Member of the Law Society of Australia and Migration Institute of Australia. Under Tanja’s leadership, TD Migration Consulting was a Finalist for Outstanding Professional Services at the 2022 and 2023 Parramatta Local Business Awards. In 2023, Tanja was also selected as a Finalist for Private Practice Lawyer of the Year, awarded by Women Lawyers Association of NSW. In 2025, Tanja was also a finalist for Sole Practitioner of the Year, at the Lawyers Weekly Women In Law Awards.