Australia’s skilled visa processing priorities changed on 19 September 2026, when Ministerial Directions 121 and 122 (MD121 and MD122) replaced the previous processing priorities under Ministerial Direction 119.
For employers and skilled visa applicants, one of the key questions is whether being in Australia when a visa application is lodged affects how it is processed.
The answer is yes, in some circumstances. However, being onshore does not automatically place an application at the highest priority. Under the current framework, the Department of Home Affairs first considers whether the application falls within a specified priority sector. The rules also differ depending on whether the application is for a temporary skilled visa or a permanent or provisional skilled visa.
Understanding this distinction is particularly important for employers and applicants using pathways such as the Skills in Demand visa (subclass 482) and Employer Nomination Scheme visa (subclass 186).
What Are MD121 and MD122?
Ministerial Directions set out the order in which certain visa applications are considered by Department of Home Affairs decision-makers.
They do not create a separate visa or remove the eligibility requirements for a visa. Instead, they establish the order in which applications are considered for processing.
MD121 applies to temporary skilled visa applications, including the Skills in Demand (subclass 482) visa.
MD122 applies to specified permanent and provisional skilled visas, including the subclass 186 Employer Nomination Scheme, subclasses 189, 190, 191, 491 and 494, among others.
Both Directions commenced on 19 September 2026, replacing the previous skilled visa processing priorities under MD119.
The new framework is therefore relevant not only to applications lodged from 19 September 2026 but also to certain applications that were already lodged and had not been finally determined when the new Directions commenced.
How Does MD121 Affect Subclass 482 Applications?
Under MD121, subclass 482 applications are considered across five priority categories.
Priority 1 – Specified sectors and interests
The highest priority is given to applications relating to specified sectors and interests, including:
- Construction
- Healthcare
- Teaching
- Agriculture
- Aquaculture
- Fishing
- Resources
- Australia’s law enforcement interests
- Australia’s defence interests
This priority is not simply based on whether the applicant is in Australia or overseas. Where an application satisfies the requirements for this priority category, the applicant’s location does not move the application into a lower location-based category.
It is also important not to assume that every position within a particular industry automatically qualifies. The relevant occupation, position and circumstances need to be considered against the requirements of the applicable Direction.
Priority 2 – Specialist Skills stream
The second priority under MD121 applies to applications for the Specialist Skills stream of the Skills in Demand subclass 482 visa where the application does not fall within the higher priority category.
This category is also not based solely on whether the applicant is onshore or offshore. The relevant requirements for the Specialist Skills stream and the applicable processing priority must be considered.
Priority 3 – Other onshore applicants
The next category applies to other applications where the primary applicant was in Australia when the application was lodged.
This is where an applicant’s location becomes particularly relevant.
Where an application does not qualify for one of the higher priority categories, being in Australia at the time of lodgement can place the application within the onshore location-based priority category.
Priority 4 – Certain offshore applicants
The next category applies to certain primary applicants who were outside Australia when the application was lodged and whose application was not combined with another person’s application at any time.
Priority 5 – Other applications
Applications that do not fall within the earlier categories are considered within the remaining priority category under MD121.
What About Subclass 186 and Other Permanent Skilled Visas?
MD122 applies a similar structure to specified permanent and provisional skilled visas.
These include the Employer Nomination Scheme visa (subclass 186) and other specified skilled visas, including subclasses 187, 189, 190, 191, 489, 491, 494, 887 and 888.
The broad processing order under MD122 is:
- Applications relating to specified priority sectors and law enforcement or defence interests;
- Other applications where the primary applicant was in Australia when the application was lodged;
- Certain offshore applications where the primary applicant was outside Australia and the application was not combined with another person’s application; and
- Other applications.
Unlike MD121, MD122 does not contain a separate Specialist Skills priority category.
For a subclass 186 application, for example, the applicant’s location can therefore become relevant after considering whether the application falls within the higher priority category.
Does Being Onshore Mean Faster Processing?
Not necessarily.
This is an important distinction between processing priority and processing time.
Being onshore can affect the category in which an application is considered, but it does not guarantee that the application will be processed within a particular timeframe.
For example, an onshore applicant may fall within a location-based priority category. At the same time, an offshore applicant may qualify for a higher priority because the application relates to a specified priority sector.
The Department also explains that processing times can vary depending on application volumes, the complexity of applications, whether applications are complete and the applicable processing priorities. Current processing information should therefore be checked rather than relying on an older processing estimate.
Why Does the Location at Lodgement Matter?
The relevant consideration is generally where the primary applicant was when the application was made.
This means the question is not simply:
“Is the applicant in Australia now?”
Instead, the relevant question is:
“Where was the primary applicant when the application was lodged?”
For example, if an applicant lodged a subclass 186 application while they were in Australia, their application may fall within the relevant onshore priority category even if they later travel overseas.
Likewise, an applicant who lodged while offshore does not automatically become an onshore applicant for processing-priority purposes simply because they later travel to Australia.
The circumstances at the time of lodgement should therefore be checked when assessing an application’s processing priority.
What About Family Members?
The Directions also distinguish between certain applications that are combined with another person’s application and those that are not.
This can be relevant where a primary applicant includes a partner or dependent children.
For example, the offshore priority categories refer to circumstances where the primary applicant was outside Australia when the application was made and the application was not combined with another person’s application at any time.
As a result, an applicant’s location should not be considered in isolation. The structure of the application and whether other applicants are included may also affect which processing category applies.
Does Processing Priority Affect Visa Eligibility?
No.
Processing priority and visa eligibility are separate matters.
An applicant may receive a higher processing priority because of their location, occupation or other circumstances, but they must still satisfy the applicable visa criteria.
For a subclass 482 application, this includes meeting the relevant requirements for the visa, nomination and nominated position.
Similarly, a subclass 186 applicant must satisfy the requirements applicable to the relevant stream, nomination and other visa criteria.
A higher processing priority does not mean that an application will automatically be approved.
What Should Employers Check Before Lodgement?
Employers sponsoring skilled workers should consider the following before lodging an application:
- Confirm the visa subclass
Determine whether the application is covered by MD121 or MD122.
- Check whether the position falls within a priority sector
The employer’s industry alone should not be used to assume that a position qualifies for the highest processing priority. The specific requirements of the applicable Direction should be checked.
- Confirm the applicant’s location
Record whether the primary applicant was in Australia or outside Australia at the time of lodgement.
- Check the application structure
Determine whether the application is combined with another person’s application, particularly where family members are included.
- Separate priority from eligibility
A processing priority determines where an application sits in the processing order. It does not change the visa requirements.
- Check current Department guidance
Processing priorities and processing timeframes can change. Information published before 19 September 2026 may no longer accurately reflect the current framework.
Understanding Processing Priority Under the New Framework
For employers and skilled visa applicants, the key issue is not simply whether an applicant is onshore or offshore. Processing priority depends on how the application fits within the relevant Ministerial Direction.
Before relying on an applicant’s location to assess expected processing, consider:
- the visa subclass;
- whether the position or occupation falls within a specified priority sector;
- whether the applicant is eligible for a particular stream or priority category;
- the applicant’s location at the time of lodgement; and
- whether the application is combined with another application.
This means that onshore status may provide a processing priority in some circumstances, but it should not be treated as a guarantee of faster processing or visa approval.
The application must still meet all applicable visa requirements, and processing timeframes can change as the Department manages application volumes and priorities.
For employers planning a sponsored visa application, understanding the processing framework at the time of lodgement can help set realistic expectations and avoid relying on outdated information about skilled visa processing priorities.
Disclaimer: This publication contains general information only and is not legal advice. Immigration law and workplace law obligations may change, and outcomes vary depending on individual circumstances. Readers should obtain independent legal advice tailored to their specific situation before acting on any information contained in this article.
