Australia has retained its permanent migration intake at 1.85 lakh places for 2026-27 and will continue to prioritise skilled migrants and applicants already living in the country for permanent residency, according to details released by the Department of Home Affairs.
The overall migration programme remains unchanged from the previous financial year, with around 71% of the intake, or 1,32,240 places, allocated to the Skilled Migration Program. Another 52,460 places have been reserved under the Family Program, while 300 places fall under Special Eligibility visas.
The government said priority across both skill and family visa streams will be given to onshore applicants. Around 1,29,590 places have been allocated to migrants already residing in Australia, while the remaining offshore slots will mainly target highly skilled migrants needed to address long-term labour shortages.
The move comes as immigration remains a politically sensitive issue in Australia amid housing shortages and pressure on infrastructure.
Employer-sponsored visas get major boost
Australia has significantly increased allocations for employer-sponsored permanent visas from 44,000 to 58,040 places for 2026-27.
The Department of Home Affairs said the increase is intended to help temporary migrants working in key sectors transition more quickly to permanent residency while addressing skill shortages in the labour market.
The Skilled Independent visa category has also increased from 16,900 to 21,090 places. Officials said the category has shown strong outcomes in highly skilled employment and economic contribution.
At the same time, allocations under the Talent and Innovation stream have been reduced from 5,300 to 3,500 places as the government narrows the category to applicants with internationally recognised achievements.
Regional visa allocations have been sharply reduced from 33,000 to 14,110 places, while State and Territory Nominated visas have increased to 35,500 places.
According to the government, skilled migration remains important for sectors facing shortages, including healthcare, engineering, ICT, construction, science and education.
Government plans points system reforms
Australia has also reiterated plans to reform its permanent migration points test for non-employer sponsored visas to better target younger, highly skilled and better-educated migrants.
Teresa Liu, managing partner for Australia and New Zealand at Fragomen, said the latest budget signals continued preference for highly skilled migrants who can support Australia’s long-term workforce needs.
The government will invest AUD 85.2 million over four years to speed up recognition of overseas qualifications and occupational licensing, particularly for trades such as electricians and plumbers. Authorities said the move could reduce workforce entry times by up to six months.
Another AUD 167.4 million has been allocated to strengthen the integrity of the immigration system, including tighter scrutiny of student visa applications.
Australia’s working holiday maker programme is also set for reforms, including expanded ballot-based selection systems for high-demand countries such as India.
Indians become Australia’s largest migrant group
The latest changes come as Indians have become Australia’s largest overseas-born migrant community for the first time.
According to the Australian Bureau of Statistics, 9.71 lakh India-born residents are currently living in Australia, slightly ahead of the 9.70 lakh residents born in England. China ranks third with 7.32 lakh residents.
Overseas-born residents now account for 32% of Australia’s total population of 27.6 million.
Meanwhile, immigrants without permanent residency, including many Indians, will continue to face a temporary ban on purchasing existing residential properties in Australia until June 2029.
