The federal government is reforming its permanent migration system to select "better educated", "higher-skilled" and younger migrants to address worker shortages.
This year's budget has confirmed the permanent migration program will remain capped at 185,000 places moving forward, with over 70 per cent of places reserved for skilled migrants.
The government will prioritise applications from onshore migrants — rather than those from overseas — across both the skill and family streams.
The remaining 55,110 offshore places will mostly be allocated to high‑skilled migrants that "help address Australia's long‑term skill needs", budget papers said.
On top of selecting those whom it considers stronger applicants, the government will also accelerate skills assessment tests to recognise existing qualifications.
This is designed to facilitate the entry of up to 4,000 additional skilled trades workers — mainly those with construction and electrical backgrounds — into the workforce each year.
The government has also announced other changes affecting Working Holiday Makers (WHMs), while strengthening the integrity of the migration system.
Changes to migration programs, visas
In its 2026 budget, the government said it would "optimise" the permanent migration points test, a program that selects almost two-thirds of permanent skilled migrants.
It's unclear what education and skills backgrounds will be prioritised among hopeful visa applicants.
The government will spend $85.2 million to deliver faster skills assessments for migrant trades workers and to accelerate occupational licensing.
These changes could cut the time taken to enter the workforce by up to six months and facilitate up to an additional 4,000 skilled trades workers into the workforce per year.
A new program of skills assessments for onshore visa holders will be delivered by Trades Recognition Australia. This will ensure skilled migrants with qualifications and practical trade experience are recognised so they can work and meet workforce shortages.
The government will spend $27.0 million over two years teaching migrant workers about workplace safeguards, protections and compliance measures related to migration law.
The government has also announced changes to the working holiday maker (WHM) program aimed to "better control numbers", reduce barriers to work and provide a "fairer allocation" of WHM visas.
This will include expanding the use of ballots in the WHM program to better manage the program, it said.
English programs, visa safeguards
The budget gas also laid out plans to change the Adult Migrant English program to improve access to "formal English tuition", which Treasurer Jim Chalmers said was ready for reform.
"It's an important skill to be able to communicate in the workplace," he told SBS News, while acknowledging that "it's not the only skill that matters to us".
From 2029, a new English-language program will be rolled out, with flexible tuition and student supports to improve English-language skills as well as employment and social cohesion outcomes for migrants.
These programs will be available to people considered to be "most in need" of support with English lessons.
There will also be $19.8 million over four years for enhanced scrutiny of onshore and offshore student visa applications to ensure the integrity of the international student visa system.
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