Australia's 2025–26 permanent migration program: key insights

The Australian Government has recently confirmed the planning levels for the 2025–26 permanent Migration Program, maintaining a cap of 185,000 places to balance economic needs with sustainable population growth. This program plays a crucial role in attracting skilled talent, supporting family reunion, and addressing labour market shortages across the country. In this article, we'll break down the key components, highlight notable changes from previous years, and discuss what this means for prospective migrants.

Overview of the program streams

The 2025–26 program is divided into three main streams, with a strong emphasis on skills to boost Australia's productive capacity:

• Skill Stream: Allocated 132,200 places (about 71% of the total program). This stream focuses on filling skill gaps, particularly in regional areas, and includes categories such as Employer Sponsored (44,000 places), Skilled Independent (16,900), Regional (33,000), State/Territory Nominated (33,000), Business Innovation & Investment (1,000), and the new Talent and Innovation category (4,300).
  
  
• Family Stream: Comprising 52,500 places (around 28%), this stream prioritises reuniting families. It includes Partner visas (40,500 indicative places), Parent (8,500), Child (3,000 indicative), and Other Family (500). Note that Partner and Child categories are demand-driven, meaning the actual numbers may vary based on applications.
  
  
• Special Eligibility Stream: A smaller allocation of 300 places for unique circumstances, such as permanent residents returning after time abroad.

Notable changes and priorities

Compared to 2023–24, the overall cap has been reduced and stabilised at 185,000 places, reflecting a shift towards more targeted migration. Key updates include the introduction of the Talent and Innovation category, which aligns with the new National Innovation Visa aimed at exceptional talent. This replaces older global talent pathways and emphasises state specific needs.

The program continues to prioritise regional and state-nominated visas, which together make up 50% of the Skill stream. This focus helps address local labour challenges and supports economic growth in less populated areas. 

Other developments include visa fee increases and higher income thresholds effective from 1 July 2025, which applicants should factor into their planning. Tighter priorities for skilled visas and changes to invitation rounds for visas like the 189 also aim to better match migrants' skills with Australia's needs.

What this means for applicants

For skilled migrants, the stable allocations in employer-sponsored and regional categories offer opportunities, but competition remains high in independent streams. Family applicants can expect consistent processing for partners and parents, though demand-driven categories may see fluctuations. 

If you're considering migrating to Australia, it's essential to stay informed about these changes and ensure your application aligns with current priorities. Professional advice can make all the difference in navigating complex requirements.

At Kells, our migration law experts are here to guide you through the process. Whether you're exploring skilled pathways or family reunification, contact us today for personalised assistance.