Australia’s 2026-27 Federal Budget, handed down on 12 May, does not dramatically overhaul the migration program. But it does reshape it in ways that matter if you are planning your next visa step.
The headline number of 185,000 permanent places remains unchanged. What has changed is how those places are distributed, who gets priority, and how the points test that governs two-thirds of all skilled migration will be scored from December 2026 onwards. There are also cost increases that have already taken effect for international graduates, which we flagged earlier this year.
Here is a clear picture of what has changed, and what it means depending on where you are in your migration journey.
More places for people already in Australia
Of the 185,000 permanent places available this year, around 129,590 are now prioritised for migrants who are already living in Australia on temporary visas. That leaves just 55,110 places for offshore applicants, the smallest offshore allocation in a decade.
If you are already here on a temporary visa and working towards permanent residency, this is genuinely good news. The government reasons that processing is faster when applicants are onshore — health checks, skills assessments and security clearances can all happen in Australia, potentially cutting processing times by up to six months.
If you are still overseas and hoping to migrate, the competition for offshore places has increased. Getting advice on your specific pathway sooner rather than later is important.
The points test is being rewritten, for the first time since 2012
This is the most significant structural change in the budget for anyone on a General Skilled Migration pathway. The points test, which affects around two-thirds of all permanent skilled migrants and sits at the heart of the subclass 189, subclass 190 and subclass 491 visa programs, will be fully redesigned. It is the first major rewrite since 2012.
What’s the government looking for? Younger applicants, stronger qualifications, higher skill levels. The details will be set out in a consultation paper in June 2026, with the updated rules in place by December. If you already have an invitation in hand, transitional arrangements will protect your position.
What this means practically: if you are in the points-tested pathway, your current points calculation may look different under the new system. We do not yet know exactly how the scoring will change. What we do know is that sitting on your current points position without acting could cost you. You can read more about how the subclass 189, subclass 190 and subclass 491 visa pathways work on our General Skilled Migration page.
Faster trade skills assessments
The government is investing $85.2 million to speed up skills assessments and occupational licensing for migrant trades workers, primarily in construction and electrical sectors. A new onshore assessment program will be delivered through Trades Recognition Australia to get an additional 4,000 skilled trades workers into the workforce each year and reduce wait times by up to six months.
If you are a trades worker already in Australia waiting on a skills assessment, this investment should translate to faster outcomes. Trades skills remain in high demand, and this budget makes that clear.
The Core Skills Income Threshold is increasing.
From 1 July 2026, the Core Skills Income Threshold, which applies to employer-sponsored visa pathways, increases by 3.9% from $76,515 to $79,499. If you are an employer sponsoring a worker, or a worker being sponsored, this threshold needs to be met by the position’s salary. If the role currently sits below this figure, it is time to review the arrangement.
A reminder on the 485 Temporary Graduate visa fee
We mentioned this earlier in the year, so consider this a timely reminder. From 1 March 2026, the Temporary Graduate visa (subclass 485) fee doubled from $2,300 to $4,600. Dependent charges went up, too.
It wasn’t a budget-night announcement, but it fits squarely with where the government is heading: tightening the temporary pathways that have functioned as holding patterns rather than genuine steps towards permanent residency. If you’re finishing your studies, or you know someone who is, the 485 still has a role to play. But at that price, going in with the right strategy matters more than it used to.
What should you do now?
Migration law is complex, and it changes regularly. The June 2026 points test consultation paper will tell us significantly more about where the system is heading, and that is only weeks away.
If the General Skilled Migration pathway applies to you, whether you’re weighing up your points, considering state sponsorship, or trying to understand where the subclass 491 regional option fits, this is the time to get a clear picture of your position before December changes the rules.
Our GSM specialist and Immigration Manager, Sammy Naghi, works with clients every day on exactly these questions. You can book an appointment with Sammy here — he will give you an honest assessment of your skilled migration visa options and help you build a strategy that works for your situation.
