Australia’s employer-sponsored migration framework continues to evolve, with new processing priorities now applying to the Employer Nomination Scheme (subclass 186) visa.
On 19 September 2026, Ministerial Direction 122 (MD122) came into effect, replacing the previous skilled visa processing priorities under Ministerial Direction 119. The new framework sets out the order in which certain provisional and permanent skilled visa applications are processed.
For employers and skilled workers considering an employer-sponsored pathway to permanent residence, understanding these priorities can be useful when planning recruitment, sponsorship and longer-term workforce needs.
However, one distinction is important: processing priority is not the same as visa eligibility. Being in a higher-priority category does not guarantee that a visa will be granted.
What is the subclass 186 visa?
The Employer Nomination Scheme (subclass 186) is a permanent employer-sponsored visa that allows eligible skilled workers to live and work in Australia permanently.
The visa requires an Australian employer to nominate the applicant, with eligibility requirements applying to the nominated position, applicant’s skills and other relevant criteria.
Depending on the circumstances, applicants may use different streams, including the Temporary Residence Transition stream or Direct Entry stream.
The Department of Home Affairs confirms that subclass 186 applicants must meet the relevant visa requirements, including having the necessary skills, being nominated by an Australian employer and satisfying applicable health and character requirements.
MD122 does not replace these requirements. Instead, it establishes which eligible applications are given processing priority.
What is MD122?
Ministerial Direction 122 sets the processing priorities for certain provisional and permanent skilled visa applications.
The Direction applies to several skilled visa subclasses, including:
- Employer Nomination Scheme (subclass 186)
- Regional Sponsored Migration Scheme (subclass 187)
- Skilled Independent (subclass 189)
- Skilled Nominated (subclass 190)
- Permanent Residence (Skilled Regional) (subclass 191)
- Skilled Regional (subclass 489)
- Skilled Work Regional (subclass 491)
- Skilled Employer Sponsored Regional (subclass 494)
- Skilled Regional (subclass 887)
- Business Innovation and Investment (Permanent) (subclass 888).
For subclass 186 applications, the new framework places greater emphasis on occupations and sectors that align with Australia’s current workforce needs.
What are the 186 visa processing priorities under MD122?
MD122 establishes four broad priority levels.
Priority 1: Key sectors and Australia’s law enforcement and defence interests
The highest priority is given to applications relating to:
- Construction
- Healthcare
- Teaching
- Agriculture
- Aquaculture
- Fishing
- Resources
- Australia’s law enforcement and defence interests
This means an eligible subclass 186 application connected with one of these priority areas can receive processing priority over applications that fall into lower categories.
The change reflects the Government’s focus on directing skilled migration towards areas where Australia has identified workforce needs.
For employers operating in these sectors, this may be particularly relevant when considering sponsorship and longer-term workforce planning.
It is important to note, however, that being in a priority sector does not automatically mean the applicant meets the requirements for a subclass 186 visa.
Priority 2: Applicants who were in Australia when they applied
The second priority category applies to applicants who were in Australia at the time they lodged their application.
This means an eligible onshore subclass 186 application may generally receive processing priority over an eligible offshore application, subject to the higher-priority sector categories and other provisions of the Direction.
For temporary visa holders already working in Australia, this can be relevant when considering a transition to permanent employer-sponsored migration.
However, applicants still need to satisfy all applicable requirements for their particular subclass 186 stream.
Priority 3: Certain offshore applicants
The third priority category covers applications where the primary applicant was outside Australia when the application was lodged, provided the application is not combined with another person’s application at any time.
This creates a distinction between different offshore applications under the MD122 framework.
For employers recruiting skilled workers from overseas, the applicant’s location at the time of lodgement can therefore be relevant to the processing priority of the application.
Priority 4: Other applications
Applications that do not fall within the higher priority categories are processed under the remaining priority category.
This does not mean these applications will not be processed. Rather, they sit behind applications that fall within the higher categories under MD122.
Does being in a priority sector guarantee a faster visa?
Not necessarily.
Processing priorities determine the order in which applications are considered, but they do not guarantee a particular processing timeframe.
The Department has specifically warned that processing timeframes may fluctuate while it transitions to the MD122 framework. Published allocation dates can move as applications are reprioritised.
Processing can also be affected by factors such as:
- whether the application is complete;
- whether further information or documents are required;
- the volume of applications;
- available places within the migration program; and
- the complexity of the individual application.
The Department also states that skilled visa applications are not necessarily processed strictly in the order they were received.
Processing priority is not visa eligibility
This is one of the most important points for applicants and employers to understand.
Priority does not equal approval.
For example, an employer-sponsored applicant working in healthcare may fall within one of the highest processing priority categories. However, the applicant must still satisfy the requirements of the relevant subclass 186 stream.
Likewise, an applicant who is already in Australia may receive a higher processing priority than an offshore applicant, but being onshore does not by itself make the applicant eligible for the 186 visa.
The Department’s subclass 186 requirements continue to apply independently of the processing priority framework.
A useful way to think about MD122 is:
Eligibility determines whether an application can be granted.
Processing priority determines where an eligible application sits in the processing queue.
What does MD122 mean for employers?
For employers, the changes reinforce the importance of looking beyond immediate recruitment needs.
Sponsoring a skilled worker is not simply about filling a vacancy. Employers should consider how the role fits into their broader workforce strategy, including:
- current skills shortages;
- the availability of local talent;
- the need for international recruitment;
- the potential for temporary workers to transition to permanent residence;
- workforce continuity; and
- longer-term staffing requirements.
For businesses operating in one of the priority sectors under MD122, the new framework may be particularly relevant when planning employer-sponsored pathways.
However, employers should not choose a sponsorship strategy based solely on processing priority.
The nominated position, the business, the worker and the relevant visa requirements all need to be considered.
What does MD122 mean for 482 visa holders?
For skilled workers currently holding a Skills in Demand visa (subclass 482), the subclass 186 pathway may form part of a longer-term plan towards permanent residence where the relevant requirements are met.
The introduction of MD122 makes it particularly important to understand how the worker’s circumstances may align with future employer-sponsored options.
For example, an employer and employee may need to consider:
Where is the worker now?
An applicant’s location at the time of lodgement can affect processing priority under MD122.
What is the worker’s occupation and sector?
Certain sectors receive the highest processing priority under the new framework.
Which 186 stream may be relevant?
The requirements and pathway can differ depending on whether the applicant is pursuing the Temporary Residence Transition stream, Direct Entry stream or another applicable pathway.
When is the right time to act?
Visa eligibility, employment history, nomination requirements and other factors need to be considered before deciding when to lodge.
What does MD122 mean for offshore applicants?
The new framework does not prevent offshore skilled workers from applying for subclass 186 visas.
However, the location of the primary applicant at the time of lodgement is relevant to the processing priority structure.
Certain offshore applications fall into the third priority category, while other applications may fall into the fourth category. Priority-sector applications can receive higher priority where they meet the relevant criteria.
For employers recruiting internationally, this means offshore recruitment can still form part of a workforce strategy, but employers should consider the potential timing of the visa pathway alongside the business’s operational needs.
Why workforce planning matters
The introduction of MD122 is another reminder that Australia’s skilled migration system is closely connected to workforce priorities.
For employers, the question is not simply:
“Can we sponsor this worker?”
It is also:
“What does our workforce need over the next one, three or five years?”
A business may need a combination of:
- skilled workers already in Australia;
- international recruitment;
- temporary sponsored workers;
- pathways to permanent residence;
- regional workforce solutions; or
- other workforce models.
The most suitable approach will depend on the business, the role and the individual worker.
What should applicants do now?
Applicants considering a subclass 186 pathway should avoid assuming that processing priority alone will determine the outcome.
Instead, consider:
1. Check your eligibility
Confirm that you meet the requirements of the relevant subclass 186 stream before relying on a potential processing priority.
2. Understand your employer’s position
The employer’s nomination and the nominated position are important parts of an employer-sponsored application.
3. Consider your location
Whether you are in Australia or outside Australia when you lodge can affect your processing priority under MD122.
4. Consider your sector
Applicants connected with construction, healthcare, teaching, agriculture, aquaculture, fishing, resources, law enforcement or defence may fall within the highest processing priority category, subject to the specific requirements of MD122.
5. Plan beyond the immediate visa
Permanent employer-sponsored migration should form part of a broader plan that considers your employment, skills, visa history and longer-term options.
What should employers do now?
Employers should consider reviewing their current sponsored workforce and upcoming recruitment plans.
This may include identifying:
- current 482 visa holders who may be considering permanent residence;
- roles that are difficult to fill locally;
- upcoming recruitment requirements;
- positions connected with priority sectors;
- potential offshore recruitment needs; and
- workers who may require a longer-term sponsorship strategy.
The earlier these issues are identified, the more effectively employers can plan their workforce and sponsorship requirements.
The bigger picture
MD122 changes the processing order for certain skilled visa applications, including subclass 186 applications.
For employers and applicants, the most significant change is the greater emphasis placed on Australia’s identified workforce priorities, followed by the location of the applicant at the time of lodgement.
But processing priority should not be viewed in isolation.
A successful employer-sponsored permanent residence strategy still depends on meeting the relevant visa and nomination requirements, preparing a complete application and considering how the visa fits into the applicant’s and employer’s longer-term plans.
For employers, the focus should be on building a workforce strategy that considers both immediate skills needs and future workforce requirements.
For applicants, it is important to understand where your circumstances fit within the current framework before making decisions about sponsorship, employment or permanent residence.
If you are an employer considering sponsorship, or a skilled worker planning a pathway to permanent residence, RSG can help you assess your options and understand how the current processing framework may affect your strategy.
Talk to RSG about your visa and sponsorship options.
This article is intended as general information only and does not constitute migration or legal advice. Visa requirements, processing priorities and Government policy can change. Applicants and employers should obtain advice based on their individual circumstances before making migration or sponsorship decisions.
