The 2025 Australian Federal Budget budget (Budget) was released on 25 March 2025 and it outlines the funding priorities for migration programs, focus on employer-sponsored migration, adjustments to humanitarian support, investment in digital transformation for streamlining visa processing, and projections for the Net Overseas Migration (NOM). However, unlike previous years, the Budget notably omits official figures for migration intake and planning levels for permanent migration.
Key takeaways
Funding allocation
Funding is expected to be allocated across different migration priorities:
- $315.2 million dedicated to the Migration Program with a focus on employer-sponsored visa pathways.
- $534.5 million invested in digital transformation to improve visa processing.
- $862.1 million allocated for humanitarian and refugee initiatives, prioritising global resettlement efforts
- $580.7 million designated to offshore processing and unauthorised maritime arrivals management
NOM
The NOM for the next financial year aligns with the estimate provided in the last mid-year’s budget update and slightly exceeds last year’s forecast of 255,000. It is also projected to continue its steady decline following post-pandemic surges
- 2024-25: 435,000
- 2025-26: 335,000
- 2026-27: 260,000
- 2027-28: 225,000
Implications for employers
- The government maintains a strong focus on employer-sponsored migration as a key priority.
- The omission of detailed migration planning numbers creates challenges for businesses reliant on skilled migration.
- Increased focus on visa compliance and integrity highlights the need for businesses to invest in robust compliance measures.
Conclusion
The Budget highlights some relevant investments in Australia’s migration programs and strategy for 2025-2026, but leaves significant room for further clarification on the government’s plans for specific intake levels and policy directions. Stakeholders will need to monitor developments closely as the government refines its approach to migration over the coming months.