Australia Sets Migration Level at 185,000, Overhauls Skills Testing for Productivity

The Albanese government announced a new Migration Program planning level of 185,000 for Australia, prioritizing migrants already within the country and investing $85 million to reform skills testing to better identify high-productivity skilled entrants.

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The Australian government has unveiled significant changes to its migration program, setting a new planning level of 185,000 people. Announced on Tuesday night, May 12, 2026, these reforms prioritize skilled migrants already residing in Australia, allocating 129,950 places for them. Over 70 percent of the total program, amounting to 132,240 places, will be dedicated to the skilled entrants stream, reflecting a strategic shift towards addressing national skill needs and boosting productivity.

A key component of this overhaul is a substantial investment of $85 million over four years into the Department of Employment and Workplace Relations. This funding includes $75.1 million specifically for a new skills assessment system for Trades Recognition Australia, aimed at streamlining the evaluation process for skilled tradespeople. An additional $5 million over three years will facilitate new skilled assessments for onshore visa holders, alongside $4.5 million to enhance regulatory oversight of assessing agencies, ensuring robust integrity in the system.

These changes carry significant implications for Filipino skilled workers and professionals aspiring to live and work in Australia, as well as those already within the country. The prioritization of onshore migrants means that Filipinos currently in Australia on temporary visas who possess in-demand skills may find a clearer pathway to permanent residency. For those offshore, the emphasis on 'highly-skilled migrants' underscores the need to align qualifications and experience with Australia's long-term skill requirements.

The Albanese government anticipates a reduction in net overseas migration, with forecasts predicting a fall to 245,000 in 2026-27 from 295,000 in 2025-26. Migration levels are expected to stabilize at 225,000 new arrivals annually from 2027-28. These adjustments are part of a broader strategy to ensure the migration scheme 'better identify migrants who drive productivity and Australia’s long-term prosperity,' a goal previously outlined in the government's migration strategy.

Amidst a heated national debate on migration's impact on cost of living and housing, the government is also strengthening the integrity of the migration system with a $167.4 million investment. This includes enhanced scrutiny of onshore and offshore student visa applications, though a National Planning Level of 295,000 new international student commencements is set for 2026, a 25,000 increase from 2025.