The budget funds new measures targeting social cohesion and skills recognition but leaves Australia’s humanitarian intake unchanged and continues high spending on offshore processing, as advocates highlight gaps in protection and transparency.
The 2026–27 Federal Budget maintains high spending on offshore processing while leaving Australia’s humanitarian intake unchanged at 20,000 places. It also includes measures focused on social cohesion and improving skills recognition for migrants and refugees.
The government has allocated $910.9 million for Refugee, Humanitarian, Settlement and Migrant Services in 2026-27. The humanitarian program intake will remain at 20,000 places, despite the aspiration in the Australian Labor Party’s 2023 National Platform to ‘progressively increase’ this to 27,000 places per year.
The ALP platform also committed to expanding complementary resettlement intake to 10,000 places annually, in addition to the humanitarian program. At the 2023 Global Refugee Forum, the government reiterated this pledge. However, sector organisations continue to call for concrete action, including an expansion of both the humanitarian program. The Refugee Council of Australia has warned against any reduction in government-sponsored places or the share of UNHCR-referred resettlement.
The Kaldor Centre has consistently given evidence that Australia’s offshore detention and processing system ‘is not a necessary, effective or sustainable measure’ for deterring boat arrivals. Despite this, spending in this area continues to grow.
Total funding for the offshore regime reached $13.35 billion between 2012 and 2025. This year’s budget brings that figure to $14.35 billion.
While $581 million was initially allocated for 2025-2026, actual spending is now expected to exceed $971 million – ‘an enormous increase’ of almost $400 million in a budget item that involves ‘supporting the implementation of regional processing and resettlement arrangements between Australia and partner countries’. Sector organisations have described this as a ‘massive cost blowout’.
For 2026-27, offshore processing is estimated to cost just over $605 million. However, the Asylum Seeker Resource Centre notes that there is ‘no transparency’ around spending on efforts to deport and resettle members of the NZYQ cohort to Nauru.
The Refugee Council and other sector organisations have raised concerns about the significant continued spending on ‘deterrence, compliance and externalisation measures’ – in contrast to what they argue is a ‘cost-reduction’ approach to the humanitarian protection.
The government has allocated $1.256 billion to onshore detention and compliance for 2026-27, a modest increase of $9 million.
An additional $167.4 million over four years is budgeted to ‘strengthen the integrity of Australia’s migration system’, including ‘enhanced scrutiny’ of student visa applications.
The budget also provides $74.2 million over four years to the federal courts to improve ‘the efficiency of the merits and judicial review processes’ and ‘address misuse of the protection visa system’. The Refugee Council has questioned how these measures will safeguard the rights of people in need of protection.
A further $27 million over two years will support migrant workers to understand workplace rights and pursue claims without fear of visa cancellation, according to the Regional Ministerial Budget Statement.
Spending on Status Resolution Support Services (SRSS) will increase from the expected $20.2 million in 2025-26, to just over $26 million in 2026-27. However, the Refugee Council notes this remains well below previous levels following ‘massive cuts’ since 2015, and the ASRC highlights that SRSS payments remain ‘well below Centrelink rates and far below the poverty line’.
The budget sees an emphasis on skilled migration and skills recognition.
More than 70 per cent of the permanent Migration Program (132,240 out of a total of 185,000 places) is allocated to the Skills stream.
The budget includes $85.2 million over four years to ‘strengthen Australia’s skilled migration system’, through an improved trade skills assessments and recognition for onshore non-skilled visa holders, and stronger regulatory oversight of skills assessment.
For refugees, $7.7 million will extend the Economic Pathways to Refugee Integration program, which supports employment outcomes across 20 regional locations.
Additional measures include $10.8 million across 2026 to 2028 towards community-led health literacy initiatives for refugee and migrant women. The budget also flags changes to eligibility for the Adult Migrant English Program, including a new, more flexible model from 2029 to ‘improve English language, employment and social cohesion outcomes for migrants.
The budget includes measures to address racism and promote social cohesion, alongside responses to the antisemitic Bondi terror attack of 14 December 2025. This includes $20 million over four years for face-to-face intercultural programs and educational resources for teachers, and $32.6 million in 2026-27 for public awareness campaigns ‘to strengthen Australia’s national security and social cohesion’.
Funding for the Australian Human Rights Commission will fall from $76.9 million to $67.5 million.
The budget allocated $101.7 million in 2026-27 to regional cooperation with international organisations and partner governments. This includes efforts targeting terrorism, transnational crime, human trafficking, border management and the deterrence of ‘irregular migration’.
For more news, visit the Kaldor Centre for International Refugee Law.