On 12 May 2026, Treasurer Jim Chalmers handed down the Albanese Government’s fifth Federal Budget. At Interlingual, we have spent the past 24 hours carefully examining what this Budget means for Culturally and Linguistically Diverse (CALD) communities across Australia, the settlement and multicultural sector, and the language services industry that connects them with essential services. The verdict? A budget of cautious continuity, modest investment in skills recognition, and a worrying step backwards in some critical areas of multicultural support.
While the Government has maintained migration intake and reaffirmed its commitment to social cohesion, the headline figures conceal a $207.7 million (18.6%) reduction in actual settlement and humanitarian spending compared with 2025-26 — a cut that will be felt directly by the migrants, refugees and multicultural Australians we serve every day through interpreting, translation and cross-cultural communication services.
The permanent Migration Program remains capped at 185,000 places for 2026-27, with 132,240 places allocated to the Skill stream and 52,760 to the Family stream. A significant shift is the strong onshore bias: 129,590 places (70%) are reserved for migrants already living in Australia on temporary visas, leaving just 55,110 places for offshore applicants — the smallest offshore allocation in a decade.
Net Overseas Migration is forecast to decline to 245,000 in 2026-27 and 225,000 by 2027-28. For Interlingual and the broader CALD services sector, this means a continuing — though slowly moderating — demand for in-language support across health, legal, education and government settings.
Spending on multicultural affairs and citizenship will be set at $301.1 million in 2026-27, a 3.6% reduction on actual spending in 2025-26, although still 35.2% above last year’s original Budget allocation. This signals that multicultural investment is being normalised at a higher baseline, but the downward trajectory in forward estimates remains a concern.
One of the most positive announcements is the $85.2 million over four years allocated to the Department of Employment and Workplace Relations to reform skills recognition for overseas-qualified workers. This includes:
Interlingual welcomes this investment. Faster, fairer recognition of overseas qualifications means more skilled migrants and refugees in meaningful work — and a stronger national workforce. However, the success of this reform will hinge on something the Budget overlooks: qualified language support throughout the assessment journey. From credential translation to interpreter-assisted licensing exams, professional language services are not an optional extra — they are the bridge between a qualification and a career.
The Government has confirmed changes to the Adult Migrant English Program (AMEP), narrowing eligibility to “target clients most in need of formal English tuition” and signalling a new program model from 1 January 2029. The reform is described as “cost neutral” over the forward estimates.
Interlingual is cautiously concerned. AMEP has been a foundation of Australia’s settlement model for nearly 75 years. Tightening eligibility risks excluding migrants who do not meet a narrow definition of “most in need” but who still cannot effectively access healthcare, schools or employment without English support. Until that need is met, professional interpreters and translators remain indispensable — and demand on TIS National, state-based interpreting services and private language providers will only grow.
Australia’s Refugee and Humanitarian Program remains at 20,000 places — the level set in 2023-24 — despite record levels of forced displacement globally. Combined funding for Refugee, Humanitarian, Settlement and Migrant Services is $910.9 million for 2026-27, $48.8 million higher than last year’s allocation but $207.7 million below estimated actual spending in 2025-26.
More troubling, forward estimates project further reductions: $750.9 million in 2027-28, $720.1 million in 2028-29, and $733.2 million in 2029-30. We share the sector’s concern that this trajectory will erode the quality of settlement services, including the language and cultural supports that determine whether a new arrival merely survives or genuinely thrives.
On the positive side, the Community Refugee Integration and Settlement Pilot (CRISP) will be embedded with $3.5 million over three years (and $1.2 million ongoing), and the Economic Pathways to Refugee Integration (EPRI) program receives a further $7.7 million in 2026-27.
The Budget allocates $10.8 million over two years to continue the Health in My Language program, providing community-led health literacy for refugee and migrant women — a clear acknowledgement that language access is health access.
$27.0 million over two years has been allocated to educate migrant workers about workplace safeguards, protections and migration-law compliance. For these messages to land, they must be delivered in language, in culture, and through trusted channels — a role Interlingual proudly plays alongside community organisations and unions.
Following the December 2025 Bondi attack, the Government will invest $604.2 million over five years in social cohesion, including $32.6 million for public awareness campaigns and $20 million to expand the Together for Humanity program. Interlingual recognises the urgency of countering antisemitism, Islamophobia, racism and extremism, and stands ready to support multilingual communications that reach every community.
Three signals from this Budget stand out for our industry:
Interlingual welcomes the 2026-27 Budget’s practical steps on skills recognition, social cohesion and health literacy, but we join FECCA, the Refugee Council of Australia, SSI and the broader multicultural sector in calling for:
Every dollar invested in qualified language services delivers a multiplier across health, justice, education and economic participation. As Australia’s migration system pivots toward higher-skilled, onshore-prioritised migrants, the role of professional language partners like Interlingual becomes more — not less — important.
We will continue working with government, business and community partners to make sure no one in Australia is left without a voice because of language. Because connection is not a privilege — it is a right.
