New Processing Priorities For Skilled Visa Applications – Employer Sponsor Update

The Department of Home Affairs has made an important change to how they prioritise skilled visa applications. The change is significant; it affects applications you already have on hand, and for some employers it will materially alter when a nominated worker can start.

Our firm previously posted an update about the Direction shortly after its implementation. However, further information has come to light regarding the purpose and approach the Department is expected to take in processing applications.

What has changed

Ministerial Direction 119 (MD-119) was signed on 24 July 2026 and commenced on 25 July 2026. It was made under section 499 of the Migration Act 1958 and revokes Ministerial Direction 105.

MD-119 commenced alongside two other Ministerial Directions. The Department has stated that all three support the Government’s policy of prioritising applications from onshore migrants across the Skilled and Family programs and reducing Net Overseas Migration.

From the information we have received, we have determined that the scope of the reordering goes beyond previous efforts to structure the order of applications based on economic need. The instrument is intended to reduce arrivals from overseas, in effect reducing Net Overseas Migration, and the available processing data already reflects that intention.

Which nomination and visas are included

Temporary Employer Sponsored

• Skills in Demand (Class GK) (Subclass 482)
• Temporary Skill Shortage (Class GK) (Subclass 482)
• Skilled Employer Sponsored Regional (Provisional) (Class PE) (Subclass 494)

Permanent Employer Sponsored

• Employer Nomination (Permanent) (Class EN) (Subclass 186)
• Regional Employer Nomination (Permanent) (Class RN) (Subclass 187)

Independent Skilled

• Skilled-Independent (Permanent) (Class SI) (Subclass 189)
• Skilled-Nominated (Permanent) (Class SN) (Subclass 190)
• Permanent Residence (Skilled Regional) (Class PR) (Subclass 191)
• Skilled-Regional Sponsored (Provisional) (Class SP) (Subclass 489)
• Skilled Work Regional (Provisional) (Class PS) (Subclass 491)
• Business Skills (Permanent) (Class EC) (Subclass 888)
• Skilled (Residence) (Class VB) (Subclass 887)

Which visas are not included

The following visas are not listed under the Direction:

• Sc 400 Short Stay Work – non-ongoing work limited to 3 or 6 months maximum in a 12 month period
• Sc 417 and 462 Work and Holiday Visa – the Department has indicated that processing of these visas is being slowed to reduce NOM
• Business Visitor Sc 600 visas, ETA and eVisitor – only permits Business Activities, does not permit work

The priority order

Direction 119 sets five priority categories. They apply to both nomination applications and visa applications, which are assessed separately.

Two points follow from this structure.

Offshore priority exists only for law enforcement and defence. An offshore healthcare, teaching or construction applicant receives no priority at all. Those applications fall into category 5 alongside every other offshore application.

Location is fixed at the time of application. From the available information, a later move to Australia does not change the category. The Direction states that where location differs between nomination and visa applications they will be processed under different priorities. It is unclear how this will be managed.

What falls outside the priority system

A limited number of applications will fall outside the priority system. These include:

• applications for a Nomination Transfer (ie, an existing visa holder who is seeking a change of employer)
• secondary visa applications where the primary visa holder already holds a valid visa
• applications remitted by the Administrative Review Tribunal
• applications “where it is readily apparent that the criteria for approval… would not be satisfied.”

Which occupations fall into each group

The Direction defines each group by reference to ANZSCO. Job titles are not determinative. The nominated ANZSCO determines the priority:

Law enforcement

ANZSCO Unit Group 4413 (Police), where the applicant is nominated or sponsored by the Australian Federal Police or a State or Territory police force. Not available to commercial employers.

Defence

Two distinct cohorts:

• occupations in relation to AUKUS Pillar I (conventionally armed, nuclear powered submarines) or Pillar II (advanced capability development).
• Defence Force Members and Officers were nominated or sponsored by the ADF or the Department of Defence.

The AUKUS limb is not tied to an occupation list. Its scope has not been tested. If your business operates in the submarine or advanced capability supply chain, tell us, because this is the only route to offshore priority available to a commercial employer.

Healthcare

Sub-major Group 25 (Health Professionals), Minor Group 411 (Health and Welfare Support Workers), and Unit Groups 2346 Medical Scientists, 2721 Counsellors, 2723 Psychologists, 2725 Social Workers, 3112 Medical Technicians. Also 423111 Aged or Disabled Carer, 423312 Nursing Support Worker, and 423313 Personal Care Assistant.

Teaching

Minor Group 241 (School Teachers) and Unit Group 1341 (Child Care Centre Managers). Also 134311 School Principal, 242211 Vocational Education Teacher, 421111 Child Care Worker, and 242111 University Lecturer.

Construction

Sub-major Group 33 (Construction Trades Workers), Sub-major Group 82 (Construction and Mining Labourers), and Unit Groups 1331 Construction Managers, 2321 Architects and Landscape Architects, 2332 Civil Engineering Professionals, 3121 Architectural, Building and Surveying Technicians, 3126 Safety Inspectors, 3129 Other Building and Engineering Technicians, 3222 Sheetmetal Workers, 3223 Structural Steel and Welding Trades Workers, 7111 Clay, Concrete, Glass and Stone Processing Machine Operators, 7121 Crane, Hoist and Lift Operators, 7212 Earthmoving Plant Operators. Also 341111 Electrician (General) and 341112 Electrician (Special Class).

Everything else

Occupations outside these definitions, including most engineering, technology, professional services, hospitality, manufacturing and agricultural roles, fall into category 4 if the applicant is in Australia and category 5 if they are not.

Current processing timeline

The Department has published the lodgement month it is currently processing for each category. These are the figures published for the two subclasses that affect most employer sponsors.

Skills in Demand (subclass 482)

Employer Nomination Scheme (subclass 186)

These figures are indicative only. They are the Department’s own published position.

Construction sits in category 3 in the Direction, at equal priority with healthcare and teaching, but is being processed materially behind them in both subclasses. This may be a result of previous priority accorded to healthcare and teaching (although the Sc 482 visa did not previously fall under any official Direction).

Processing timeframes going forward

It is unclear how the Department will process these applications going forward. We are seeking clarification from the Department on this point.

There are a number of possible approaches to the current system – the Department may process all Priority 1 applications in the queue before assessing any Priority 2 applications. Alternatively, a percentage could be allocated based on the priority level.

Further information will be provided once additional information is available.

What this means for your business

Applications already lodged offshore will be delayed

If you have a nominee who applied from overseas and is not in a law enforcement or defence occupation, that application now sits in the lowest category. Any start date or arrival date you have planned around it should be revisited.

Start dates and workforce planning need to be reset

The gap between the priority categories and the rest is measured in months for the 482 and in years for the 186. Planning assumptions prior to 25 July 2026 are no longer valid.

Attention required to maintain decision ready applications

Several document types (health examinations and police certificates) are only valid for 12 months. It is essential to ensure up to date documents remain available. Likewise, other documents can expire. These include passports, English language test results, and Skills Assessments.

We are reviewing how we can better support clients to manage these issues.

Intra-company transfers are not prioritised

This is a critical factor for many multi-national organisations. Appropriate planning needs to be undertaken

Accredited Sponsorship & Regional Sponsorship are no longer available

Direction 119 does not give priority to positions in regional locations, and it does not give priority to nominations lodged by sponsors with Accredited status. If your planning relied on either, it no longer applies.

Specialist Skills Stream

The Sc 482 Skills in Demand program split the visa into multiple streams including Core Skills, Specialist Skills and Labour Agreements. The Direction makes no reference to any of these elements. At present we expect all applications to be processed based on the priorities set out in the Direction without regard to visa stream.

Wherever possible, employers should look to local skills and onshore candidates with work rights

The purpose of the skilled visa programs is to supplement the labour market where workers are not available locally. We understand that in many cases, businesses are unable to locate staff in Australia who possess the necessary expertise or experience to perform niche roles.

What we are doing for applications

We are reviewing all lodged and unlodged applications and assigning each to its category under the Direction. We will then contact clients individually to work through the affected applications and attempt to determine the realistic timeframe for each. In some cases there may be a change to lodgement timing or strategy that materially improves the outcome.

In many instances, the only option will be to apply for the relevant visa and accept the amended processing priorities.

What we are doing to address

We are working with professional and industry bodies to bring the issues arising from these changes to the attention of government stakeholders. The absence of intracompany transfers, lack of priority for offshore healthcare, and many other aspects of the Direction will cause significant harm to individual businesses and the broader economy.

We encourage clients to speak with their industry bodies, State and Federal agencies and representatives and internal government relations teams, to likewise flag the harm these changes are likely to cause in the near term.

Urgent matters

Please contact us if any of the following apply, as they may change our advice:

• A nominated worker’s start date is commercially critical, or the role cannot be held open
• ou have a candidate already in Australia who could fill a role currently earmarked for an offshore hire
• A nominee’s circumstances have changed, including family composition, location or passport

If you would prefer to bring your review forward rather than wait for us to reach you, reply to this email and we will arrange a time.