Australia sets 2026-27 Migration Program at 185,000 with skilled-stream tilt
Department of Home Affairs maintains the 185,000 ceiling for 2026-27; Skill stream rises to 132,240, Employer-Sponsored visas jump 32% to 58,040.
The Australian Government released the 2026-27 Permanent Migration Program on May 12, 2026 as part of the Federal Budget, maintaining the overall ceiling at 185,000 places for a third consecutive year while shifting allocation toward employer-sponsored skilled workers already onshore. Minister for Home Affairs Tony Burke confirmed the Skill stream rises to 132,240 places (about 71.5% of the program) and the Family stream holds at 52,460, with the Department of Home Affairs publishing the full subclass-level breakdown on the planning-levels page on the same day.
What's changed
The Skill stream gains 14,040 places inside the existing 185,000 envelope, driven almost entirely by the Subclass 186 Employer Nomination Scheme rising from 44,000 to 58,040 — a 32% increase that is the largest single-subclass shift in the 2026-27 program. The Subclass 189 Skilled Independent allocation rises 25% from 16,900 to 21,090 places, and the Subclass 190 Skilled Nominated allocation holds at 35,500. Subclass 491 Skilled Work Regional retains 14,110 places.
The Family stream shrinks marginally to 52,460 places. Partner visas hold at 41,500, Parent visas at 7,060, and Child visas at 3,500. The Special Eligibility category retains 300 places.
The 2026-27 program continues a two-year trend of shifting allocation from offshore to onshore applicants. Approximately 129,590 places (70%) are reserved for migrants already living in Australia on temporary visas, while only 55,110 places (30%) are available to offshore applicants. The onshore share is the highest recorded in the program's recent history and follows the Workforce Australia register reform legislated earlier this month, which strengthens employer-sponsored pathways.
Who's affected
The employer-sponsored expansion targets temporary skilled workers already in Australia on Subclass 482 Temporary Skill Shortage visas, post-study graduates on Subclass 485 Temporary Graduate visas, and Working Holiday Maker participants holding eligible skilled occupations. The 58,040 Subclass 186 places are split across the Direct Entry, Temporary Residence Transition, and Labour Agreement streams; the Department of Home Affairs has not published the internal split.
State and territory nominators retain 35,500 Subclass 190 places across the eight jurisdictions, with allocation negotiated bilaterally between the Department and each state. Regional employers and Designated Area Migration Agreement (DAMA) sponsors draw from the 14,110 Subclass 491 pool.
Partner-visa applicants face the existing demand-driven processing model — the 41,500 ceiling functions as an indicative target rather than a hard cap, with backlog reduction the published priority.
When it takes effect
The 2026-27 program year runs from July 1, 2026 to June 30, 2027. The Department of Home Affairs has been processing applications against the new planning levels since the May 12 Budget announcement. Skilled migration invitation rounds for Subclass 189 and Subclass 491 are conducted by SkillSelect and operate on the new ceilings from the next scheduled round. Employer-sponsored Subclass 186 nominations are not subject to invitation rounds and continue under continuous processing.