The federal government is reforming its permanent migration system to prioritize younger, “higher-skilled,” and “better educated” migrants. This strategic shift aims to directly address ongoing worker shortages across the country.
Strategic Shift in Migration Priorities
As part of the 2026 budget, the government has confirmed that the permanent migration program will remain capped at 185,000 places. More than 70 per cent of these positions are reserved specifically for skilled migrants.
A key change in the new approach is the prioritization of onshore migrants over those applying from overseas. This priority applies to both the family and skill streams.
Of the remaining 55,110 offshore places, the majority will be allocated to high-skilled migrants who can help address the nation’s long-term skill needs, according to budget papers.
Boosting the Trades Workforce
To accelerate the entry of qualified workers, the government will invest $85.2 million to speed up occupational licensing and skills assessment tests. These measures could reduce the time it takes for migrants to enter the workforce by up to six months.
This initiative is designed to facilitate the entry of up to 4,000 additional skilled trades workers each year, with a primary focus on those with electrical and construction backgrounds.
Trades Recognition Australia will deliver a new program of skills assessments for onshore visa holders. This ensures that migrants with practical trade experience and recognized qualifications can meet immediate workforce shortages.
System Integrity and Visa Reforms
The government is also taking steps to strengthen the integrity of the migration system. This includes an investment of $19.8 million over four years to increase scrutiny of both onshore and offshore student visa applications.
$27.0 million will be spent over two years to educate migrant workers on migration law, compliance measures, and workplace protections.
Changes are also coming to the Working Holiday Maker (WHM) program. To better control numbers and ensure a “fairer allocation” of visas, the government will expand the use of ballots and work to reduce barriers to employment.
Language Support and Integration
The Adult Migrant English program is set for reform to improve access to formal tuition. Treasurer Jim Chalmers noted that while it is not the only skill that matters, the ability to communicate in the workplace is an “important skill.”
Starting in 2029, a new English-language program will be introduced. It will offer flexible tuition and student supports to improve social cohesion and employment outcomes for those considered “most in need.”
the government intends to “optimise” the permanent migration points test, which currently selects nearly two-thirds of all permanent skilled migrants. It remains unclear which specific education or skills backgrounds will be prioritized under the updated test.
Frequently Asked Questions
What is the current cap on the permanent migration program?
The program is capped at 185,000 places moving forward.
How many additional trades workers could enter the workforce annually?
The changes are designed to facilitate up to 4,000 additional skilled trades workers each year, mainly in the electrical and construction sectors.
When will the new English-language program be implemented?
The new program, featuring flexible tuition and supports, will be rolled out from 2029.
How do you think these changes to the migration points test and onshore prioritization will impact the labor market?
