The Australian Government confirmed the permanent migration program for 2025-26 will maintain 185,000 places. This decision came after consultations with states and territories in September 2025. The program stays at the same level as 2024-25, but with structural changes that matter to anyone planning to apply for permanent residency in 2026.

The most significant change is the Skills in Demand (SID) visa, which replaced the Temporary Skill Shortage visa on December 7, 2024. This affects employer-sponsored pathways to permanent residency. State allocations for 2025-26 are still being finalized, though Western Australia and South Australia received interim allocations to process applications carried over from 2024-25.

Understanding these changes helps you plan your migration timeline properly. This guide covers the complete migration program breakdown, the new SID visa structure, and strategic planning for 2026 applications. If you're considering skilled migration pathways, these updates directly impact your options.

Migration Program 2025-26: Complete Breakdown

The 185,000 permanent places are divided into two main streams. The skilled stream receives approximately 132,200 places, representing 71% of the total program. The family stream gets 52,500 places, or 28% of the program.

Within the skilled stream, the distribution favors employer-sponsored visas. Employer-nominated categories receive around 66,200 places. This includes the new Skills in Demand visa and the Subclass 186 Employer Nomination Scheme. Skilled Independent visas (Subclass 189) get 44,000 places. Regional and state-nominated categories receive 22,000 places combined, covering both 190 and 491 visas.

The government introduced a new Talent and Innovation stream with 4,300 places. This stream targets high-value individuals in innovation sectors and global talent. The selection criteria are stricter than traditional skilled migration pathways.

The family stream maintains its demand-driven approach. Partner visas and child visas account for the bulk of family stream applications. Processing continues at steady levels, though waiting times vary significantly by visa subclass and assessment complexity.

Multi-year planning is now part of the migration framework. The government announced a four-year cycle running from 2025-29. This provides better planning certainty for applicants, employers, and state governments. However, annual adjustments can still occur based on labor market needs and economic conditions.

For context, net overseas migration peaked above 500,000 in 2023. Treasury modeling suggests it will moderate to around 300,000 in 2026. The permanent program cap at 185,000 reflects a balanced approach between workforce needs and sustainable migration levels.

Skills in Demand Visa: Three Streams Explained

The Skills in Demand visa replaced the 482 visa on December 7, 2024. Applications submitted after December 6, 2024, must follow the new SID visa requirements. The visa still uses Subclass 482, but the framework changed completely. Understanding the three streams is critical because each stream has different salary thresholds, occupation requirements, and permanent residency pathways.

Specialist Skills Stream

The Specialist Skills stream targets senior professionals earning at least $135,000 annually (increased to $141,210 from July 1, 2025). There's no occupation list restriction for this stream. Any occupation in ANZSCO Major Groups 1, 2, 4, 5, and 6 qualifies, excluding trades, machinery operators, and laborers.

This stream offers direct eligibility for permanent residency through Subclass 186 after meeting residence and employment requirements. Processing times are faster, with a seven-day service standard at launch. The high salary threshold reflects Australia's focus on attracting highly skilled professionals who bring significant economic value.

Applicants need only one year of relevant work experience instead of the previous two years. English requirements remain at Competent level. The visa grants up to four years validity.

Core Skills Stream

The Core Skills stream replaces the medium-term stream from the previous 482 visa. It applies to occupations on the Core Skills Occupation List (CSOL), which includes 456 occupations across construction, healthcare, IT, education, and trades sectors.

The minimum salary is $76,515 annually (indexed to TSMIT, or Temporary Skilled Migration Income Threshold). From July 1, 2025, this increases in line with wage growth. Applicants must earn either the TSMIT or the average market salary rate for their occupation, whichever is higher.

The permanent residency pathway requires working for an approved sponsor for two years. After this period, applicants become eligible for the Employer Nomination Scheme (Subclass 186) Temporary Residence Transition stream. Previous restrictions that required staying with the same employer have been relaxed. Employment with multiple approved sponsors counts toward the two-year requirement as long as the work remains continuous.

Work experience requirements dropped from two years to one year of full-time employment at a skilled level. This change makes the visa more accessible to mid-career professionals. English language requirements remain at Competent English level minimum.

Labour Agreement Stream

The Labour Agreement stream continues with minimal changes from the previous 482 visa framework. It allows employers to negotiate specific arrangements with the Department of Home Affairs when standard visa options don't meet their workforce needs.

This stream provides flexibility for industries with unique skill requirements or regional employers facing specific labor shortages. Terms vary by agreement, including salary thresholds, occupation eligibility, and permanent residency pathways.

The government plans to develop an Essential Skills stream to replace the Labour Agreement pathway. This new stream will focus on lower-paid essential workers where persistent shortages exist. Development is ongoing, with implementation expected during the 2025-26 program year.

Key Changes Affecting 2026 Applicants

Several policy updates impact migration applications lodged in 2026. The most significant change affects English language testing. The Department of Home Affairs now accepts nine approved English tests, up from five previously. The three new tests are CELPIP General, LanguageCert Academic, and Michigan English Test (MET).

All tests must be completed at secure testing centers. Remote or online tests are no longer valid for visa purposes, even if taken before August 7, 2025. This rule applies to all approved English tests for Australian visas.

PTE Academic score requirements changed on August 7, 2025. The new component-based scoring means different thresholds for listening, reading, writing, and speaking. Competent English now requires PTE overall 50 with component scores of 47, 47, 54, and 54 respectively. Proficient English needs overall 65 with components 58, 59, 69, and 70. Superior English requires overall 79 with components 69, 70, 85, and 88.

Tests completed before August 7, 2025, remain valid under the old scoring system for up to three years. However, applying the new thresholds to your score can affect points claims in the PR points system.

State nomination allocations for 2025-26 are still being finalized. Western Australia and South Australia received interim allocations but full program details haven't been released yet. Victoria historically received around 2,000 places for 491 visas. Queensland, New South Wales, and Tasmania allocations are expected to follow similar patterns to 2024-25 but official numbers aren't confirmed.

Processing times continue to stretch across most visa categories. Skills assessments are taking longer due to increased scrutiny of overseas qualifications. Visa processing times for skilled visas currently range from 6-14 months depending on subclass and complexity.

The introduction of the CSOL affects both SID visa applications and Subclass 186 Direct Entry permanent residency applications. Checking whether your occupation appears on the skilled occupation list is the first step in any skilled migration application.

Student visa numbers for 2026 are capped at 295,000 places. This represents a significant reduction from previous years. The tighter cap affects international students planning to transition to permanent residency through post-study work visas.

Strategic Planning for 2026 Migration Applications

Timing matters significantly in skilled migration applications. Expression of Interest (EOI) lodgements should happen as early as possible once you meet minimum requirements. Invitation rounds continue regularly, but point scores required for invitations keep increasing. Having competitive points scores makes the difference between receiving an invitation quickly or waiting months.

For employer-sponsored applications, securing sponsorship before visa processing changes is critical. If you're currently on a 482 visa granted before December 7, 2024, your pathway to permanent residency remains unchanged. New applicants under the SID visa should understand their specific stream's permanent residency pathway from the start.

State nomination applications require careful research. Each state has different occupation priorities, work experience requirements, and English score expectations. State nomination requirements vary significantly between NSW, Victoria, Queensland, and other territories.

English test preparation should begin early. Achieving Proficient or Superior English adds 10 or 20 points respectively to your points score. The difference between Competent and Proficient English can mean the difference between receiving an invitation or not. Book your test early because popular test dates fill quickly, especially for PTE Academic and IELTS.

Skills assessments must be current and valid when you lodge your visa application. Most assessing authorities require evidence of recent work experience. Start the skills assessment process at least 3-6 months before you plan to submit your EOI. Some occupations have longer processing times or additional requirements.

Documentation preparation takes time. Certified translations of documents in languages other than English can take weeks. Police clearances from multiple countries require advance planning. Health examinations must be completed within 12 months of visa lodgement.

For regional migration pathways, consider that "regional Australia" now includes Perth, Gold Coast, Adelaide, and other major cities. The 491 visa provides an alternative pathway with additional points and eventual access to permanent residency through Subclass 191.

How Desire Immigration Can Help You

Mrs. Manisha Bhutani (Registered Migration Agent MARN 2217756) provides expert guidance on the 2025-26 migration program and Skills in Demand visa applications. Our team understands the complexities of employer sponsorship arrangements and can assist employers and workers throughout the application process.

We offer comprehensive PTE coaching with practice labs, proven score improvement methods, and mock tests. Our migration consultancy services include visa eligibility assessments, documentation preparation, skills assessment guidance, and application lodgement support.

Free initial consultations are available. Contact Desire Immigration at our Melbourne offices in Truganina, St Albans, or CBD. We've successfully assisted over 10,000 clients with their Australian migration goals.

Book your free consultation today to discuss your 2026 migration plans and receive personalized advice based on your circumstances.

Frequently Asked Questions

What is the Australia migration program for 2025-26?

The Australia migration program for 2025-26 maintains 185,000 permanent places. The skilled stream receives 132,200 places (71%) while the family stream gets 52,500 places (28%). A new Talent and Innovation stream adds 4,300 places for high-value applicants. The program emphasizes employer-sponsored visas within the skilled stream, with 66,200 places allocated to employer nominations.

How many PR places are available in Australia 2026?

There are 185,000 permanent residency places available in 2026. This includes 44,000 places for Skilled Independent visas (189), 66,200 for employer-sponsored visas including the Skills in Demand visa, and 22,000 for regional and state-nominated visas (190, 491). The remaining places go to family stream visas and the new Talent and Innovation stream.

What is the Skills in Demand (SID) visa?

The Skills in Demand visa is a temporary skilled work visa that replaced the 482 TSS visa on December 7, 2024. It has three streams: Specialist Skills (for salaries $135,000+), Core Skills (for salaries $76,515+ in CSOL occupations), and Labour Agreement. The visa allows up to four years stay and provides clear pathways to permanent residency. Work experience requirements are now one year instead of two years.

What's the difference between the SID visa and 482 visa?

The SID visa offers more flexibility than the old 482 visa. Key differences include: only one year work experience required instead of two years, ability to change employers more easily with 180 days to find new sponsorship (up from 60 days), all occupations eligible for Specialist Skills stream regardless of occupation lists, and clearer permanent residency pathways with employment counting toward PR requirements even when changing sponsors.

What are the Skills in Demand visa salary requirements?

The Specialist Skills stream requires minimum $135,000 annually ($141,210 from July 1, 2025). The Core Skills stream requires minimum $76,515 annually, indexed to TSMIT and increasing each July 1. Applicants must earn either the TSMIT or the average market salary rate for their occupation, whichever is higher. The Labour Agreement stream has case-by-case salary determinations.

Can I get PR through the SID visa?

Yes, both the Specialist Skills and Core Skills streams provide pathways to permanent residency. Specialist Skills stream holders can apply directly for Subclass 186 after meeting requirements. Core Skills stream holders must complete two years employment with approved sponsors before applying for Subclass 186 Temporary Residence Transition stream. Work with multiple approved sponsors counts toward the two-year requirement.

What states have migration allocations in 2026?

Western Australia and South Australia have received interim allocations to process carryover applications from 2024-25. Full state allocations for 2025-26 haven't been officially announced yet. Victoria historically receives around 2,000 places for 491 visas. New South Wales, Queensland, Tasmania, and other states are expected to announce their allocations during the 2025-26 program year.

How do I apply for skilled migration in Australia 2026?

Start by checking if your occupation is on the skilled occupation list or CSOL. Complete a skills assessment from the relevant assessing authority for your occupation. Achieve required English test scores (Competent minimum, Proficient or Superior recommended). Calculate your points score to ensure you meet the minimum 65 points. Submit an Expression of Interest through SkillSelect. Wait for invitation to apply. Lodge your visa application within 60 days of invitation.

What English tests are accepted for Australian visas in 2026?

Nine English tests are accepted from August 7, 2025: IELTS Academic, IELTS General Training, PTE Academic, TOEFL iBT, OET, Cambridge C1 Advanced, CELPIP General, LanguageCert Academic, and Michigan English Test (MET). All tests must be completed at secure testing centers. Remote or online tests are not valid. Results are valid for three years from test date.

When should I start my 2026 visa application?

Start planning at least 12 months before your intended travel date. Begin English test preparation 6-9 months before lodging your EOI. Start skills assessment 3-6 months before EOI submission. Submit your EOI as soon as you meet minimum requirements. Processing times range from 6-14 months for skilled visas after invitation. Earlier preparation increases your chances of success and reduces stress during the application process.