(AUSTRALIA) Australia will hold its permanent migration cap steady at 185,000 places for the 2025–26 financial year, the federal government confirmed on September 2, 2025, keeping the size and composition of the program unchanged from 2024–25. The decision follows consultations with all states and territories and preserves a strong tilt toward skilled migration, with around 70–71% of places going to workers in key sectors.
Officials say the steady settings aim to give applicants and employers predictability while the broader economy absorbs earlier population growth and ongoing pressures on housing and infrastructure.
Program composition and key numbers
- Permanent migration cap: 185,000 places (unchanged for 2025–26)
- Skilled places: about 132,200
- Family stream: roughly 52,500
- Employer-sponsored stream: 44,000 places (rises)
- Skilled Independent: 16,900 (falls)
- Regional visas: 33,000
- State/Territory Nominated visas: 33,000
- Business and investor pathways: 5,000 (Business Innovation and Investment Program replaced by the National Innovation Visa)
- Partner visas: demand-driven and processed within the overall cap (no hard quota)
The employer-sponsored increase reinforces a policy shift toward job-matched pathways. Partner visas remain demand-driven, meaning they are processed within the cap rather than assigned a fixed quota that could delay family reunion.
Rationale and government stance
The Albanese Government’s stance reflects recommendations from state and territory leaders to maintain both the size and composition of the program. Officials say the steady cap gives predictability while housing, infrastructure and labour markets adjust to earlier population growth.
“A measured and rational response” — Peter van Vliet, President of the Migration Institute of Australia, welcomed the decision, saying a steady cap with targeted recruitment allows employers to plan and hire with confidence.
The Department of Home Affairs continues to process visas under existing settings to help applicants who have already lodged or are preparing to apply.
Changes to temporary and student settings
Officials stress that holding the permanent cap steady does not mean reform has paused. The government is recalibrating temporary and student settings to manage demand and protect integrity.
- Student visa fee: $1,600
- Ministerial Direction 111: allows up to 80% of a provider’s student allotment to be treated as high priority
- Financial and English language rules: raised to improve integrity and align intakes with provider capacity
According to analysis by VisaVerge.com, these measures are intended to slow unsustainable growth, support genuine students, and ease pressure on the rental market and public services.
Recent migration and arrival data (context)
- Net overseas migration: 446,000 people (12 months to June 30, 2024)
- Short-term visitor arrivals: 624,510 in June 2025 (+6.3% year-on-year)
- Long-term permanent arrivals: 9,840 (down 17.4% over same period)
- International student arrivals: 207,000 in the latest annual data
- National Planning Level for international students (2026): 295,000 places
These figures show the system is still unwinding from the post-pandemic surge. Keeping the cap at 185,000 is intended to stabilise inflows while labour demand, housing supply, and local infrastructure catch up.
Priority occupations, points and salary thresholds
The government’s focus on skilled migration prioritises health, engineering, and IT, where demand remains acute. There are no major changes to the points system this year; the points-tested pathway continues with known settings (points for work experience, Australian qualifications, high-demand skills, etc.).
New minimum salary thresholds for employer sponsorship:
- Core Skills stream: AUD 76,515
- Specialist Skills stream: AUD 141,210
These floors aim to protect wages, ensure sponsored roles reflect genuine skill needs, and direct recruitment to market-appropriate positions.
Impact on applicants and employers
- Skilled workers: stronger prospects through employer sponsorship and regional nomination than via the smaller Skilled Independent route.
- Employers: greater planning confidence with a larger sponsorship allocation and clear wage floors supporting fair pay.
- Families: benefit from steady partner processing and predictable timelines; partner visas remain demand-driven within the cap.
- Students: face higher fees and tougher criteria, but clearer priorities under Ministerial Direction 111 help genuine applicants plan.
- Business and innovation: a reduced allocation (to 5,000) and the transition to the National Innovation Visa indicate a shift toward performance-based investment pathways.
Applicants should continue to file through the Department of Home Affairs portal and follow current eligibility rules. The application process itself has not changed.
Practical advice for applicants
- Skilled candidates:
- Ensure skills assessments, English scores, and work history are up to date.
- Secure any required state, territory, or employer nomination before lodgement where needed.
- Those meeting the points threshold in priority occupations may have stronger prospects, but demand will outpace supply in some trades and professions.
- Employers:
- Start sponsorship discussions early, especially where local hiring falls short (health, aged care, construction, technology).
- Families:
- Prepare complete partner visa applications with robust relationship evidence to reduce back-and-forth requests.
- Students:
- Check provider status and understand how Ministerial Direction 111 may affect priorities.
Public debate and fiscal considerations
Public debate remains active, with housing affordability and congestion driving calls for tighter limits. The Parliamentary Budget Office examined an opposition Coalition proposal to reduce the cap to 140,000; this is not government policy as of September 2025.
- The PBO notes that cutting migration to that level would reduce government revenue and could dampen overall economic activity — a trade-off that complicates the political and economic discussion.
- State and territory governments recommended maintaining current levels, arguing employers—especially in regional areas—still struggle to fill positions.
Business and innovation pathway changes
The Business and Innovation category has been trimmed to 5,000 places. The BIIP is replaced by the National Innovation Visa, reflecting a trend toward tighter, performance-based investment pathways. Policymakers argue that directing fewer places to passive investment and more to direct, high-impact innovation can yield stronger productivity gains. Startups and high-tech employers will watch selection criteria and timelines closely.
Longer-term balance: temporary settings and permanent outcomes
While the permanent cap remains unchanged, temporary settings significantly affect who later moves into permanent roles. Tighter student and graduate rules and refined temporary skilled settings reduce the pool of onshore candidates who might convert to permanent visas later. This can ease pressure on services and rentals but may also mean fewer immediate onshore candidates for employers — a balance the government is monitoring and may adjust over time.
Key takeaways
Holding the permanent migration cap at 185,000 places signals predictability and a focus on targeted skilled migration while allowing flexibility to adjust temporary settings as needed.
- The policy favours employer-sponsored and regional pathways over independent skilled intake.
- Applicants and employers gain planning certainty but face continued competition in high-demand occupations.
- Ongoing monitoring of housing, job markets and public services will influence future adjustments.
For authoritative, up-to-date program settings, eligibility details and processing guidance, consult the Department of Home Affairs: Department of Home Affairs.
Policy Changes Overview (summary)
| Item | 2025–26 setting |
|---|---|
| Permanent migration cap | 185,000 places |
| Skilled migration share | ~70–71% (~132,200 places) |
| Employer-sponsored visas | 44,000 places |
| Skilled Independent visas | 16,900 places |
| Regional visas | 33,000 places |
| State/Territory Nominated visas | 33,000 places |
| Business/Innovation visas | 5,000 places (BIIP → National Innovation Visa) |
| Partner visas | Demand-driven within the cap |
| Student visa fee | $1,600 |
| Salary thresholds | AUD 76,515 (Core Skills); AUD 141,210 (Specialist Skills) |
Impact summary
- Skilled workers: shift toward employer and regional nomination.
- Employers: better planning ability; wage protection via salary floors.
- Families: steady partner processing; single-stage partner process reduces wait times.
- Students: tougher criteria and higher fees; prioritisation under Ministerial Direction 111.
- Business/innovation: tighter, targeted pathways favoring high-impact innovation over passive investment.
The government will continue assessing outcomes across housing, jobs and services. For now, keeping the permanent migration cap at 185,000 places and maintaining emphasis on skilled migration signals continuity: focused on integrity, critical skills, and caution about adding pressure to a housing market still adjusting.
This Article in a Nutshell
On September 2, 2025, Australia confirmed the permanent migration cap at 185,000 places for 2025–26, maintaining program composition and a strong emphasis on skilled migration. Approximately 70–71% of places (about 132,200) will be allocated to skilled workers, with employer-sponsored visas increased to 44,000 and Skilled Independent places lowered to 16,900. Regional and state/territory nominated visas are each set at 33,000. Business and investor allocations fall to 5,000, transitioning to a National Innovation Visa. Student settings are tightened — including a $1,600 fee and Ministerial Direction 111 priorities — and new employer sponsorship salary floors (AUD 76,515 and AUD 141,210) aim to protect wages. The government argues these steady settings offer predictability while housing, infrastructure and labour markets adjust to prior population growth. Applicants and employers should prepare documentation, secure nominations where required, and follow Department of Home Affairs guidance as temporary settings may be recalibrated over time.
