The Federal Budget handed down in May included a number of announcements relevant to employers who rely on international talent.
Here is our outline of the key changes and what they mean for your migration program and workforce planning over the next 12 months.
The permanent migration program stays at 185,000 places
The government has maintained the permanent migration program at 185,000 places for 2026-27, with the 70/30 split between skilled and family migrants remaining unchanged.
However, what is changing is the intent behind how those places are allocated. There will be a greater focus on younger, highly educated, highly skilled applicants, and a clear preference for onshore applications over offshore ones.
For employers, this has a practical implication: if you have workers offshore waiting on permanent residency applications, you may experience delays. The strategic shift is towards processing applications for people already in Australia. If your sponsored workers are onshore and eligible for permanent residency, now is a good time to prepare and submit those applications rather than waiting until the last minute.
It is also worth noting permanent residency caps have no bearing on temporary work visas, which remain uncapped. If you are sponsoring workers on temporary work visas, this program continues to be demand-driven and is unaffected by budget announcements.
Keep in mind: you’ll need support to help temporary workers progress to more permanent solutions; this is an area where The Migration Agency (TMA) can provide support.
Salary thresholds are increasing from 1 July
The Federal Budget proposed minimum salary thresholds be increased for 482 and 186 visas with nominations lodged from 1 July 2026.
The Core Skills stream threshold moves to $79,499 and the Specialist Skills stream moves to $146,717.
If you have sponsored workers whose salaries sit close to the current thresholds, you will need to review their remuneration before lodging new nominations.
How different components of a salary package are counted towards these thresholds is a common source of confusion, particularly where loadings, allowances or variable pay are involved. If you are unsure how this applies to your workforce, speak with your migration adviser before 1 July.
Trades skills recognition
Many representatives from the construction industry have welcomed the budget’s recommended $75.1 million investment in speeding up trade skills assessments and improving the integration between Trade Recognition Australia and occupational licensing. The aim is to facilitate an additional 4,000 trade workers into Australia, which will benefit employers in construction, infrastructure, housing and manufacturing.
However, there are two important limitations to note. First, the improvements appear to be focused on visa holders already onshore, rather than workers being recruited from overseas. $5.6 million has been allocated over 3 years from 2026–27 for TRA to deliver a new program of skills recognition for onshore non-skilled visa holders.
And the investment is directed at trades occupations specifically, leaving delays in skills assessments for nursing, allied health, mental health and other professional and technical occupations unaddressed. These bottlenecks remain a challenge for employers in health, aged care and related sectors.
Qualification recognition for VET graduates
A new National Credit Recognition Framework will support migrants who hold vocational or TAFE qualifications to have those skills recognised towards university degrees.
This is intended to reduce duplication and improve workforce availability in fields such as nursing, teaching, engineering and construction, where workers may be progressing through both VET and university pathways.
Stronger compliance expectations for employers
The budget includes investment in compliance and integrity measures across the migration system, and employers should expect increased scrutiny on sponsorship obligations, workforce documentation and visa compliance. This applies not only to employer-sponsored visa holders but to any migrant workers in your supply chain.
Organisations with strong governance frameworks and documented compliance practices will be better positioned as this scrutiny increases. If your business does not have clear processes around work rights verification and visa condition monitoring, this is a good time to address that.
Read more: Maintaining Fairer Pathways for Migrant Workers
Looking ahead
The Migration Agency supports Australian businesses with immigration and talent mobility solutions, supporting a range of industries including corporate, engineering, aged care, allied health, construction, childcare and technology.
Permanent residency visa processing times have slowed in recent months because the annual program ceiling has been reached for this immigration year. However, from 1 July, new places open and processing should resume at a more normal pace.
