On 6 August, the Migration Institute of Australia (MIA) held its quarterly meeting with the Australian Department of Home Affairs. After the meeting, MIA summarised the principal policy and visa-processing information discussed for registered migration agents.
If the entire meeting were condensed into one sentence, it would be: in the 2026–27 financial year, Australian migration policy is shifting further towards onshore applicants and skilled workers who can directly meet the needs of Australia’s labour market.
The meeting focused on adjustments to the 2026–27 permanent migration allocation and processing arrangements for different visa categories following the implementation of new ministerial directions. The information released so far indicates that employer sponsorship has become more important, while onshore applicants have also received higher processing priority across several visa categories.
Employer-sponsored PR allocation rises sharply as the Regional allocation is adjusted
In the 2026–27 financial year, the permanent migration allocation for the Employer Sponsored category has increased from 44,000 places in the previous financial year to 58,000—an increase of 14,000 places.
At the same time, the Regional category allocation has been reduced.
The Department’s explanation for this adjustment is directly connected with the earlier Regional Migration Review. According to the government’s assessment of the regional migration programme, migrants under employer-sponsored programmes performed better in terms of income levels and long-term retention than those using regional skilled migration pathways such as Subclass 491.
The government therefore chose to reallocate some places from the Regional category to the Employer Sponsored and Skilled Independent (Subclass 189) categories.
The policy signal is quite clear: Australia currently places greater weight on applicants who have already entered the labour market and can address industry workforce needs through actual employment.
DAMA application volumes rise sharply and agreement processing times lengthen
Although the overall Regional allocation has been reduced, the Department continues to regard DAMA (Designated Area Migration Agreement) as an important tool for addressing workforce shortages in regional areas.
Over the past 12 months, demand for new DAMA agreements and variations has increased by nearly 50%. As application volumes have grown rapidly, the processing time for a new DAMA agreement has also lengthened from approximately 50 days to about 100 days.
The Department is currently examining further process adjustments and working with Designated Area Representatives in the hope of improving overall processing efficiency by raising the completeness and quality of application materials.
For businesses considering DAMA employer sponsorship, it has therefore become even more important to prepare materials early and ensure that applications are complete and accurate.
Skilled migration processing will adjust dynamically according to priority
The meeting also confirmed that the new Ministerial Direction 119 has been implemented and now also applies to the Subclass 482 employer-sponsored visa.
Under the new processing priorities, one very clear trend is that: Onshore applications are prioritised over Offshore applications.
To make the processing times shown to applicants more closely reflect actual conditions, the Department has also adjusted the processing times displayed on skilled visa pages.
In future, the relevant processing times will be calculated according to the new processing priorities and updated using actual processing data from the previous month. This means the processing times displayed on the official website are not fixed periods; they will adjust dynamically as actual processing conditions and application priorities change.
Onshore student visa backlog falls 36% year on year
For student visas, the current backlog of onshore Student visa applications in Australia is 36% lower than at the same time last year.
At the meeting, MIA also raised a question of particular concern to international students: what should a student do if their CoE is about to expire but their Student visa has not yet been finalised?
The Department said it is currently triaging applications with CoEs that are close to expiry, meaning that some of these applications may be processed earlier.
If an applicant’s CoE has already expired, the Department may also ask the applicant for further materials, including a new CoE.
Applicants who have lodged a student visa application and whose CoE is nearing expiry should therefore monitor whether the Department issues a request for further information.
Family visas: offshore applicants currently face longer waits
For family visas, one important change discussed at the meeting was Ministerial Direction 117.
The current processing approach likewise reflects the priority given to onshore applications over offshore applications. Processing priority relates not only to the applicant’s location when the application was lodged, but also to whether the visa can be granted while the applicant is in Australia.
MIA also conveyed the industry’s concern to the Department about the long-term backlog of offshore family visa applications.
Given the existing backlog, offshore partner visa applicants may face long waits if onshore applications continue to be processed first. Offshore partner visas and some other family visa categories are currently progressing relatively slowly.
For offshore applications, the Department may consider a case individually only where compelling circumstances exist.
The Department also acknowledged that the new ministerial direction does change the order in which different applications are processed and said it would continue monitoring the relevant data and reporting to the government.
The present lower priority for offshore applications does not necessarily mean the arrangements will remain unchanged for the entire financial year. Further adjustments by the Department in response to the backlog and the government’s policy objectives will need to be monitored.
Bridging visa holders reach 435,000, with applicants advised to apply early for a BVB
Approximately 435,000 people in Australia now hold bridging visas. The Department said this is related to factors including overall visa-processing delays and the ART backlog.
People planning to leave Australia while holding a bridging visa particularly need to pay attention to the timing of a Bridging Visa B (BVB) application.
The Department recommends applying for a BVB at least four weeks in advance, rather than waiting until close to the departure date or until the current visa is about to expire.
Notably, the backlog of BVB applications related to employer sponsorship has fallen substantially. These applications exceeded 2,000 in early July this year but have now fallen below 500. The Department is also improving applicants’ practical travel arrangements while they wait by providing longer BVB validity periods, among other measures.
What signals is migration policy sending in 2026–27?
Taken together, the information released at the MIA’s quarterly meeting with the Department points to several relatively clear policy directions.
First, controlling net overseas migration (NOM) remains an important government objective.
Second, onshore applicants are receiving higher priority across several visa categories.
Third, employer sponsorship continues to grow in importance. The marked shift in the permanent migration allocation towards the Employer Sponsored category essentially reflects the government’s policy direction of using migration to directly supplement Australia’s labour market.
Fourth, Australia places greater value on people who have already entered the local labour market, can secure genuine employment and remain in the relevant industry over the longer term.
For international students currently studying in Australia, and students planning to use study as a pathway towards a long-term future in Australia, this also means that the previous approach of planning solely around ‘migration points’ is changing.
When choosing a major, students need to consider not only whether the occupation appears on a relevant skilled occupation list and whether state nomination is available, but also employment prospects after graduation, genuine industry demand and the prospect of joining a business that can provide employer sponsorship.
In other words, future study-to-migration planning must consider more than whether a graduate can ‘accumulate enough points’. It must also ask:
Can I find relevant work after graduation?
Is there genuine, sustained demand for skills in this industry?
Is there a chance of joining a business that can provide employer sponsorship?
How can I start building Australian study, work and industry experience as early as possible?
For people hoping to use study ultimately to plan for long-term status in Australia, status planning needs to start earlier and gradually shift from a simple ‘points-calculation mindset’ to integrated planning across career, employment and status.
