Following the meeting between the Migration Institute of Australia (MIA) and the Department of Home Affairs on 6 August 2026, several important signals have emerged about the direction of Australia’s migration program for the 2026-27 financial year.
1. The Migration Program remains at 185,000 places, with a strong focus on onshore applicants
The Government is working towards an approximate 70% onshore and 30% offshore split within the permanent Migration Program. This indicates that migrants who are already living, working and contributing in Australia will continue to be prioritised under the current migration strategy.
2. Employer Sponsored places increase significantly from 44,000 to 58,000
This is one of the most notable changes.
The Department of Home Affairs advised that regional allocations have been reduced in part to accommodate increases in the Employer Sponsored and Skilled Independent programs.
More importantly, findings from the regional migration review indicate that employer-sponsored programs deliver better outcomes in terms of income and workforce retention compared with the subclass 491 visa.
This further reinforces the growing importance of migration pathways that are directly linked to genuine employer demand.
3. DAMA is playing an increasingly important role in meeting regional workforce needs
The Department of Home Affairs considers Designated Area Migration Agreements (DAMA) an important mechanism for addressing workforce shortages across regional Australia.
Over the past 12 months, demand for new DAMA agreements and variations has increased by nearly 50%, resulting in processing times for new agreements increasing from around 50 days to approximately 100 days.
4. Ministerial Direction 119 continues to prioritise onshore applications
Ministerial Direction 119 now also applies to the Skills in Demand program.
The Department of Home Affairs confirmed that internal processing arrangements are being adjusted in line with the new priorities, with onshore skilled visa applications being prioritised over offshore applications.
Processing times published on the Department’s website will also be updated monthly to better reflect these priorities.
5. Employer-sponsored visa applications are also subject to stronger scrutiny
The Department of Home Affairs is increasing training for decision makers, with particular focus on:
- Genuine position
- Salary requirements
- Review and quality assurance before refusal decisions
This means that having an employer willing to sponsor you is not enough on its own. Nomination and visa applications still need to clearly demonstrate the genuine need for the position, the appropriateness of the role and compliance with relevant salary requirements.
The direction of Australia’s migration program is becoming increasingly clear: greater priority is being placed on applicants who can transition from temporary visas to permanent residence, particularly those who are already in Australia and whose skills align with genuine labour market needs.
For skilled migrants planning to settle permanently in Australia, focusing on only one visa pathway or simply waiting for an invitation may no longer be the most effective strategy. Employer Sponsored, DAMA and other migration pathways should also be considered alongside factors such as occupation, Skills Assessment, work experience and individual circumstances.
Skill Direct will continue to provide updates and analysis on key developments across Australia’s 2026-27 migration program. If you would like an assessment of your eligibility for different visa pathways, contact Skill Direct for support.
