Australian Migration Newsletter - September 2026

State nomination programs: slowly getting underway

The 2026–27 state and territory skilled migration programs are now beginning to take shape, although the process has been gradual. The most noticeable point is that states have finalised their quotas with the Federal Government significantly faster than last year.

Nomination places for the 2026–27 program year have increased compared to 2025–26 but the individual states and territories do not all receive or announce their allocations at the same time, and each jurisdiction needs to establish its own program settings before it can begin inviting applicants.

As at the end of August, Tasmania, the Northern Territory, South Australia, the ACT and Western Australia have commenced their 2026–27 nomination programs.

Tasmania opened its Registration of Interest system on 17 August, while The Northern Territory opened on 21 August. South Australia reopened its program on 26 August. The ACT has also opened its new nomination portal, although its final 2026–27 allocation is still being confirmed.

Queensland and New South Wales have not yet reopened their 2026–27 programs, with both still awaiting confirmation of their new allocations. Victoria also remains closed following the end of its previous program year.

A state announcing that its program is "open" does not necessarily mean that large numbers of invitations will immediately be issued. Some states deliberately release invitations progressively throughout the year, while others may take time to assess demand and determine how their allocation should be used.

Similarly, a state that has not yet opened is not necessarily behind schedule or missing out on places. The process of finalising allocations and setting the rules for each new program year takes time, and progress can be relatively slow during the first few months of the financial year.

Skilled visas: new processing priorities

One of the more significant recent developments is the introduction of Ministerial Direction 119, which came into effect on 25 July 2026. This Direction addresses skilled visa processing priorities and applies to a range of skilled and employer-sponsored visas, including subclasses 189, 190, 191, 482, 491 and 186.

Under the new arrangements, processing priority is determined by a combination of the occupation involved and whether the applicant is in Australia or overseas. The highest priority is given to applicants in areas supporting national security and law enforcement, followed by applicants in occupations and sectors considered particularly important to Australia's workforce needs, including teaching, healthcare and construction. Other skilled occupations then fall into lower priority categories.

It may appear that the new Direction represents a significant change in the way skilled visa applications are processed. In reality, much of what it does is formalise priorities that were already in place.

For example, applicants in areas such as healthcare, teaching and construction have already benefited from higher processing priority. Giving priority to applicants working in national security and law enforcement is unlikely to have a significant effect on overall processing times because the number of applicants in these areas is relatively small.

The new Direction also gives greater weight to the location of the applicant, with applicants in Australia generally receiving priority within the relevant categories.

This is worth putting into perspective. The Australian Government is also looking at measures that could significantly reduce the number of people applying for skilled visas while already in Australia. If fewer applications are made onshore, the fact that onshore applicants receive a processing priority becomes less significant in determining the overall processing priority.

There is another reality and that is Australia continues to have skills shortages in a number of industries.

An applicant who is already in Australia and working is, of course, already contributing to the Australian workforce. Their presence or visa status does not itself increase the number of skilled workers available to address an existing shortage. This is one reason why state governments, industry groups and businesses continue to emphasise the need to attract additional skilled workers from overseas.

The Government is also continuing to look for ways to reduce visa processing times more generally. Faster processing benefits applicants and employers, but it also supports Australia's broader need to attract and retain skilled workers.

For applicants, the practical message is therefore somewhat less dramatic than the introduction of a new Ministerial Direction might suggest. Direction 119 formalises, in many respects, an existing approach to processing priorities, and its overall impact on skilled visa processing times may therefore be relatively limited.

The more important question for any individual applicant remains whether their occupation, circumstances and proposed visa pathway fit within the current skilled migration settings.

Work and Holiday visas: caps, ballots and tighter controls

The Work and Holiday (subclass 462) program continues to operate with country-specific annual caps for first applications. However, the program also forms part of the Government's broader effort to better manage temporary migration and ensure that temporary visa programs continue to serve their intended purpose.

The Government has been looking at tighter controls around both the grant of Work and Holiday visas and the ability of visa holders to extend their stay in Australia. These changes form part of a wider focus on managing temporary migration levels, maintaining the integrity of the visa system and ensuring that temporary migration remains aligned with Australia's workforce and economic needs.

For the 2026–27 program year, the Department's current information shows that the application cap is paused for Singapore, with an annual grant cap of 2,500.

A number of other countries in the region are also subject to caps or ballot arrangements.

For example, applicants from China, India and Vietnam must participate in a ballot process before they can be invited to apply for the subclass 462 visa. Indonesia is subject to an annual cap, while its application status can also be paused during the program year.

These arrangements reflect the increasingly managed nature of the Work and Holiday program. Places are limited, and eligibility for the program does not necessarily mean that an applicant will be able to obtain a visa immediately.

A paused cap does not necessarily mean that the program has permanently closed. The Department may reopen a paused cap later in the same program year.

Anyone considering a Work and Holiday visa should therefore check the Department's current country-cap status before making plans based on availability. It is also important to understand that the rules governing subsequent visas and extensions can change, particularly as the Government continues to review Australia's temporary migration settings.

Staying up to date

Australian migration law and policy can change quickly. Processing priorities, visa charges, program numbers and application procedures can all be amended after an application has been lodged.

The information in this newsletter is accurate to the best of my knowledge at the date of publication, but should not be relied upon as a substitute for checking the requirements and policies currently in force.

If you are considering an Australian visa, it is therefore important to look at the current requirements that apply to your particular circumstances, rather than relying on information from an older application, website or social media post.

At Graham-Nguyen & Associates, I personally manage migration matters from initial assessment through to lodgement and decision.

If you are considering skilled migration, a Partner visa, Visitor visa, National Innovation Visa or another Australian migration pathway, you are welcome to get in touch to discuss your circumstances.