Australia is heading into 2026 with a migration policy undergoing a major reset — not by slashing permanent intake, but by reshaping who comes and why.
The reforms follow a federal review of migration laws sparked by the Bondi Beach massacre, which the government says will inform tighter rules and a more selective approach to arrivals.
While the permanent migration cap remains steady, stricter student visa rules and a more selectively targeted skilled stream will redefine the profile of new arrivals, supported by new digital tools designed to streamline compliance and application processing.
Here's a look at what changed in 2025 and what is set to unfold in 2026.
Permanent migration program holds firm — but with a sharper focus
For 2025–26, Australia's permanent migration program remains at 185,000 places, unchanged from the previous year, with continued emphasis on skilled migration.
A total of 132,200 places (around 71 per cent) are allocated to the skilled stream, while 52,500 places (approximately 28 per cent) are allocated to the family stream, predominantly partner visas.
The 2025–26 permanent migration program is set at 185,000 places, maintaining 2024-25 settings. Source: SBS News
But Adelaide-based migration agent Mark Glazbrook said the system still faces deep structural challenges.
He warns the success of the skilled stream depends not just on who is selected but on how effectively their skills are used once they arrive.
"If skilled migrants come to Australia to work as mechanics or in construction, for example, but they lack the competency and proficiency that local businesses need, not only is the migrant more likely to be underutilised, they still need to live in a house — but another migrant will need to come to fill the job the first couldn't do," he said.
Meanwhile, settlement patterns show little sign of shifting.
Despite regional visa allocations, most new arrivals continue to settle in Melbourne, Sydney, and, increasingly, Brisbane and Perth — a trend Glazbook said highlights the gap between policy intentions and real-world outcomes.
International student intake climbs — but with tougher scrutiny
After two years of attempts to rein in student numbers, the Albanese government will adopt a more moderate stance in 2026. The target intake will rise from 270,000 in 2025 to 295,000 in 2026, even as stricter visa checks remain in place.
Skills and Training Minister Andrew Giles said in August: "The settings that government has put in place for 2026 will ensure that the international VET [Vocational Education and Training] sector can grow sustainably to better meet skills needs, in Australia and the region."
As part of the reforms, universities seeking an increase to their allocation will need to demonstrate stronger engagement with Southeast Asia and make progress in providing secure student accommodation for both local and international students.
Phil Honeywood, CEO of the International Education Association of Australia, encouraged the pivot to closer neighbours such as Thailand and Indonesia, but expressed concerns about housing backlogs.
"It's taking purpose-built student accommodation companies anything up to three years to get a project approved and commence construction. So it's a long game," he told SBS News in August.
Priority processing will continue for Pacific and Timor-Leste students and government-funded scholarship holders.
From 2026, Australian-schooled international students and those coming through TAFE or recognised pathway providers into public universities will be exempt from the government's National Planning Level, or cap. Longer-term changes are also on the way, with a new Tertiary Education Commission expected to oversee student caps and university allocations from 2027.
But Abul Rizvi, a former deputy secretary at the Department of Immigration from the early 1990s to 2007, said the system is still adjusting unevenly.
He noted that the planning levels have created very different outcomes across sectors.
"Private higher education providers had by September significantly exceeded their planning levels. VET and public universities were well below their planning levels," he told SBS News.
Rizvi said public universities are now heavily reliant on rapid visa processing to meet next year's allocations.
"There was a big increase in offshore student applications for higher education in September 2025 … Public universities will be relying on those applications being processed quickly and the students arriving quickly to get near their allocations," he said.
Universities will have to demonstrate stronger engagement with Southeast Asia and progress in providing secure student accommodation to apply for an increase in their allocation. Credit: Asanka Ratnayake/Getty Images
Glazbrook said the shift reflects ongoing concerns about student quality, intent and how the system is being used.
"There are many genuine international students; there are also some who attempt to use the student visa program as a way to obtain Australian residency," he said.
"Increasing student visa numbers will put upward pressure on net overseas migration. However, a bigger concern is the quality of courses provided and the utilisation of skilled migrants who graduate through these courses and obtain permanent residency, but then do not work in their nominated occupation."
He also warned the tougher rules would push more applicants into lengthy appeals processes, slowing expected departures and keeping migration numbers higher than anticipated.
Net Overseas Migration
Following the post-pandemic surge, the number of migrants coming to Australia has fallen to a three-year low.
Net overseas migration (NOM) fell to 306,000 over the 2024-2025 financial year, according to the latest figures released by the Australian Bureau of Statistics (ABS).
NOM measures the change in Australia's population from people entering and leaving the country.
Jenny Dobak, ABS head of migration statistics, said: "Net overseas migration dropped by 124,000 people in 2024-25, falling for the second year in a row since the financial year high of 538,000 people in 2022-23."
The change was driven by both a 14 per cent decrease in migrant arrivals, particularly temporary visa holders, and a 13 per cent increase in migrant departures.
"While net overseas migration is not currently at the level seen prior to the pandemic, this year's overseas migration figures are the closest to pre-COVID-19 figures since annual net overseas migration peaked in the September quarter 2023," Dobak said.
Migrant arrivals in 2024-25 were only 3 per cent higher than in 2018-19, while migrant departures remained 15 per cent lower than in 2018-19.
NOM jumped dramatically after the end of COVID-19, and the government has been actively trying to reduce it, including by limiting the number of overseas students.
A mix of capped permanent visa places, stricter student visa rules, more targeted skilled migration settings, and increased compliance measures highlights the government's attempt to balance economic demands with pressures on housing and infrastructure.
However, experts warn that without genuine efforts to redirect settlement to regional areas, longstanding labour shortages outside the major capitals will persist.
"Cutting NOM is important, but cutting parts of the migration program that drive economic growth and prosperity for all Australians should not be cut," Glazbrook said.
"Cutting permanent migration does not lower the rate of NOM, especially when most people who have applied for a permanent visa are already in Australia and already counted in net overseas migration numbers."
Bondi attack sparks migration reform
The federal government will review the country's migration laws in the wake of the Bondi Beach massacre, which was allegedly perpetrated by a man who immigrated from India and his son, who was born in Australia.
Matt Thistlethwaite, assistant minister for immigration, said the government's response to the terror attack would include a review of the country's migration laws as part of a package to be released in the coming days and weeks.
"We'll have a look at our migration settings to make sure that they're appropriate and that they can weed out and stop people who have antisemitic or racist views, that may incite violence into Australia and ensure that people like that can't migrate to our country," Thistlethwaite told the ABC on 18 December.
Home Affairs Minister Tony Burke said the government intends to make visa cancellation and visa refusal easier, saying people on visas are "guests" in Australia.
The bill has not yet been drafted, but the government said it would seek to give the Department of Home Affairs greater powers over visas.
But experts told SBS News they are concerned for people of or perceived to be of Muslim background living in or migrating to Australia, who could be disproportionately screened.
Claire Loughnan, lecturer of criminology at the University of Melbourne, said: "When we start to see the proposals for laws like this, I think there's a real risk that that kind of conflation of language in terms of identities becomes collapsed into an assumption that anyone who looks like or seems like a Muslim is then subject to more stringent regulation and surveillance."
She said there are numerous examples of migration laws being applied retrospectively, such as the recently reformed detention laws, which means a migration overhaul could affect people already in Australia on visas.
New online support service for people with expired visas
In a bid to reduce the number of people living in Australia unlawfully, the government has launched a new online visa support service. The platform helps applicants with expired visas resolve their status quickly, offering pathways to reapply for a valid visa or depart the country without the lengthy delays historically associated with compliance processes.
Rizvi said while the support service sounds like a "good idea", only time will tell how effective it is.
"It may partly be a response to the huge bridging visa backlog, which the government will not want to keep growing," he said.
Changes to English language testing and the Immi App
Applicants will also encounter updates to the list of approved English language tests used for visa applications, following a recent review.
There are now nine tests accepted. This has increased from the five previously accepted tests.
Rizvi said the wider range of English language tests (ELT) provides applicants with more choice, but also carries a risk.
"The risk is that more providers means more competition which can sometimes convert to ELT providers competing on the basis that their tests are easier," he said.
At the same time, enhancements to the Immi App are being rolled out to streamline documentation uploads and communication with the Department of Home Affairs.
The app is now available in 34 countries, and eligible applicants can use it to submit their facial biometrics and passport information from their smartphones, removing the need for in-person visits to biometric collection centres.
These changes form part of a broader digital-modernisation push aimed at making the visa system easier to navigate.
Share
