Australia’s 41% cut to two state-nominated visas for 2025-2026 can push thousands of skilled migrants towards employer-sponsored visa pathways, boosting the talent pipeline for international businesses operating in Australia.
The Federal Government confirmed a 23% reduction in overall state and territory nomination allocations, but the sharpest impact falls on two state-nominated visas: the Skilled Nominated (190) and Skilled Work Regional (491) visas. These programmes will issue far fewer invitations in 2025-2026, even though the total migration intake remains unchanged. State-nominated visas allow Australian states and territories to select skilled migrants for roles that address local workforce shortages.
According to Chris Johnston, Principal Lawyer of Work Visa Lawyers, skilled migrants who have already invested in skills assessments, English tests and Expressions of Interest (EOI) for their state-nominated visa application now face lower chances of receiving an invitation. “This means fewer invitations across the country and higher competition for many occupations, and some occupations might not get selected at all,” he explained.
Johnston added that relying only on the 190 and 491 visas this year is not a reliable strategy. He advised applicants to consider other visa options such as employer-sponsored visas (482, 186, 494), training visa (407) and regional employer pathways, including DAMAs.
ABN Australia’s Managing Director, Aaron Garry, said that international businesses operating in Australia stand to benefit, as skilled workers are increasingly turning to employer-sponsored visas as the more reliable pathway to securing residency. “As these nomination shortages take effect, more skilled professionals are expected to shift towards employer-sponsored visas. This shift strengthens the hiring position of international businesses that can offer sponsorship, particularly those struggling with labour shortages,” he said.
Although Queensland and the Northern Territory received modest increases in allocations, most states are operating with tighter quotas that limit the number of skilled migrants who can enter through traditional state-nominated channels.
South Australia absorbed one of the largest cuts, with its combined 190 and 491 allocation reduced to 2,250 places. The state will continue to prioritise sectors such as construction, defence, education, engineering, health and manufacturing.
Last updated: 12th Dec 2025
About the Author
Ro Elvinia is ABN Australia's Customer Success and Marketing Manager. She holds a bachelor’s degree in mass communication, majoring in journalism, and also has an academic background in civil engineering. With over a decade of experience in professional writing and a background spanning journalism, Australian immigration, and business services, Ro brings a unique mix of communication and analytical expertise. She works closely with international clients and contributes to ABN Australia's content strategy, helping global businesses stay informed and confident as they navigate the Australian market.
Ro Elvinia
Customer Success and Marketing Manager