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Permanent Migration Intake Remains at 185,000 in Australia 2026 27
12 May 2026 11 min read
The Australian Government has confirmed in the 2026 27 Federal Budget, handed down on the evening of Tuesday 12 May 2026, that the permanent Migration Program will be held at 185,000 places for a third consecutive year. The decision keeps the headline ceiling flat while shifting the composition of the program more decisively toward migrants already living in Australia, and sets up a full redesign of the skilled points test for delivery before the end of 2026.
This article walks through every aspect of the announcement so applicants, sponsors and migration professionals can understand exactly what is changing, what is staying the same, and what to do about it.
Holding the ceiling at 185,000 for a third year is itself a deliberate policy signal. Budget Paper No. 2 describes the program as designed to place downward pressure on Net Overseas Migration, and the Treasurer reinforced that framing in the Budget speech. The composition of the program has shifted noticeably toward Skill and toward onshore applicants, but the headline number has not moved. The government has chosen to manage migration pressure through tighter temporary visa settings and a sharper internal mix rather than through cuts to permanent residency places.
Approximately 70 percent of all permanent places (129,590 of 185,000) are reserved for people already in Australia, across both the Skill and Family streams. The remaining 55,110 places sit with offshore applicants. In practical terms, applicants already in Australia on a substantive visa such as a Subclass 482, 500, 485, 417, 462 or 820 sit inside the cohort the program is actively trying to convert into permanent residents.
Some direct consequences of the allocation include:
The Budget confirms a full redesign of the skilled migration points test, the first major rewrite since 2012. The stated aim is to select better educated, higher skilled and younger migrants overall. The redesigned test will sit at the heart of the Subclass 189 Skilled Independent, Subclass 190 Skilled Nominated and Subclass 491 Skilled Work Regional pathways, which collectively account for almost two thirds of permanent skilled migrants.
Net Overseas Migration (NOM) is forecast at 260,000 in 2025 26, falling to 225,000 in 2026 27, and settling around a long term anchor of 235,000. NOM is a different number from the permanent Migration Program because it counts everyone who arrives in Australia minus everyone who departs, across temporary and permanent visas combined. The Budget is forecasting a smaller temporary pipeline rather than cuts to permanent residency.
The National Planning Level for international student commencements has been lifted to 295,000 for 2026, up from 270,000 in 2025. Australian schooled students, TAFE pathway students and pathway provider students are excluded from the cap. Additional measures include:
From 1 July 2026, the Core Skills Income Threshold (CSIT) rises from $76,515 to $79,499, an increase of 3.9 percent, and the Specialist Skills Income Threshold rises from $141,210 to $146,717. The Temporary Skilled Migration Income Threshold (TSMIT), which the regional Subclass 494 continues to rely on, is not automatically indexed and remains at $76,515 unless the Minister updates it by separate legislative instrument.
The Budget signals an expansion in the use of ballots for the Working Holiday Maker program (Subclass 417 and Subclass 462), with the stated goals of managing program numbers, reducing barriers to work, providing fairer allocation and supporting national interests. Ballots already apply to several Subclass 462 partner countries where demand significantly outstrips the annual cap, including India, China and Vietnam. The detail of which programs move to a ballot, and when, will sit with the Department's WHM program settings rather than Budget night announcements.
The Budget allocates $85.2 million over four years to the Department of Employment and Workplace Relations to modernise the skills assessment system, with most of the funding flowing to Trades Recognition Australia. The breakdown is:
Three further measures sit alongside the headline figures:
Partner visas (Subclass 820/801 onshore and Subclass 309/100 offshore) did not receive a dedicated line item in this Budget. The most relevant change is structural: the 70 percent onshore allocation across the permanent program indirectly supports onshore Partner applicants over offshore applicants in processing terms.
This article is for informational purposes only and does not constitute legal advice. For personalised guidance on Australian migration pathways, please contact our team.