Recent Migration Policy Changes Skilled Workers and Employers Need to Know in Australia (2026)

Recent Migration Policy Changes Skilled Workers and Employers Need to Know in Australia (2026)

Australia’s migration framework has now fully transitioned into a high-integrity, compliance-focused era. Reforms introduced between 2024 and 2025 are operational in 2026, centred on the Skills in Demand (SID) visa and a more tightly controlled Permanent Migration Program.

 

1. Permanent Migration Program: Planning Levels for 2025–26

For the 2025–26 financial year, the Australian Government has set the Permanent Migration Program at 185,000 places.

Within this allocation:

  • 132,200 places are designated for the Skill stream (71%)
  • 52,500 places are allocated to the Family stream (28%)
  • 300 places are reserved for the Special Eligibility stream

The program remains heavily weighted toward skilled migration, reflecting ongoing labour shortages in priority sectors.

Skill Stream Breakdown (Indicative Allocations)

Visa Category 2025–26 Planning Level
Employer Sponsored 44,000
State/Territory Nominated 33,000
Skilled Independent (Subclass 189) 16,900
Regional (Subclass 491/494) 33,000
Business Innovation & Investment 1,000

 

 

 

Key Trend:
The Subclass 189 Skilled Independent visa is now highly restricted, with invitations largely confined to critical sectors such as healthcare and education. Most skilled migrants should expect to pursue State-nominated or Employer-sponsored pathways.

 

 

2. Employer Sponsorship: The Skills in Demand (SID) Visa

The former Subclass 482 (TSS) has been fully replaced by the Skills in Demand (SID) visa, designed to improve worker mobility while enforcing stricter salary and compliance requirements.

Key Changes in 2026

Three-Stream Structure

  • Specialist Skills StreamMinimum salary: $141,210 (indexed July 2025)Median processing time: 7 days
  • Core Skills StreamApplicable to occupations on the Core Skills Occupation List (CSOL)Salary floor: $76,515
  • Essential Skills StreamLabour-agreement pathway for lower-paid but critical roles (e.g. aged care)

 

Reduced Work Experience

Minimum experience requirement reduced from two years to one year.

 

Improved Mobility

Visa holders now have 180 days to find a new sponsor if employment ends (previously 60 days).

3. Tighter Controls on Graduate Pathways

Pandemic-era concessions have ended. The Subclass 485 (Temporary Graduate) visa has reverted to pre-pandemic settings, with stricter age and duration limits.

  • Age limit: Generally 35 years or under at time of application (previously up to 50)
  • Duration:
  • Bachelor / Masters by Coursework: 2 years
  • Masters by Research / PhD: 3 years
  • No extensions: Automatic two-year extensions have been abolished

Impact: Graduates must now transition to skilled or sponsored visas much earlier.

4. Points Test and Skilled Migration Selection

The points test is being recalibrated to prioritise human capital over volume.

2026 Trends

  • More frequent invitation rounds, but higher cut-off scores
  • Priority sectors:Health, Education, Construction Trades, Green Energy
  • English proficiency:Superior English is effectively mandatory for competitive EOIs
  • Partner skills:Skilled partner points carry greater weight in rankings

 

5. Regional Migration: The Fast-Track Option

With metropolitan quotas under sustained pressure, regional visas remain the most accessible pathway to permanent residency.

Subclass 491 (Skilled Work Regional)

  • 15 bonus points for State nomination
  • Clear pathway to PR via Subclass 191
  • PR eligibility requires 3 years living and working in a regional area
  • No minimum income threshold currently enforced (tax returns still required)

 

6. Increased Costs and Compliance

Visa Application Charges (indexed 1 July 2025)

  • SID (formerly 482) – Main applicant: ~$3,210
  • Subclass 485 – Main applicant: ~$2,300

TSMIT Indexation

  • Salary floor now $76,515
  • Employers must pay TSMIT or Market Salary Rate, whichever is higher

 

 

How to Prepare: Strategic Checklist

✔ Confirm your occupation is on the CSOL
✔ Retake English tests if needed to achieve Superior English
✔ Secure employer sponsorship early under the 1-year experience rule
✔ Consider regional nomination if your points are below ~85
✔ Plan visa pathways 2–4 years ahead, not visa-by-visa

 

 

How NB Migration Law Can Help 

The 2026 migration framework rewards strategy, compliance, and timing — not guesswork.

We assist with:

  • Eligibility audits aligned with 2026 selection settings
  • Employer compliance for SID sponsorship and salary evidence
  • PR pathway mapping from temporary to permanent residence

 

Book a free consultation today and let us help you find a way forward.