On 18 September 2026, Minister of Home Affairs Tony Burke signed Ministerial Direction 121 (MD121) and Ministerial Direction 122 (MD122) – significantly expanding the skilled visa priority processing framework.
MD121 revokes and replaces Ministerial Direction 119, while MD122 introduces a similar processing framework for a broad range of provisional and permanent skilled visa applications for the first time.
Together, these Directions effectively broaden the occupations and industries eligible for priority processing and extend the Australian government’s workforce planning objectives across both temporary and permanent skilled migration programs.
While visa eligibility requirements remain unchanged, they do affect the order in which applications are processed by the Department of Home Affairs (DHA). As a result, some applications may be processed more quickly, whereas others may experience longer processing times.
With the introduction of MD121 and MD122, strategic visa and workforce planning have become more important than ever.
What’s changed?
Under MD121 and MD 122, the DHA prioritises the processing of Skills in Demand (subclass 482), Employer Nomination Scheme (subclass 186), Skilled Employer Sponsored Regional (subclass 494), and other independent skilled visa applications based on the following priority order:
- Priority 1
Priority Occupations & Sectors: Applications involving occupations in law enforcement, defence, healthcare, teaching, construction, agriculture, aquaculture, fishing, resources, and mining. - Priority 2
Specialist Skills Stream (subclass 482 only): Applications lodged under the Specialist Skills stream receive an elevated processing priority where the nominated salary meets the applicable Specialist Skills Income Threshold (currently AU$146,576 per annum). This reflects the Australian government’s objective of attracting highly skilled talent capable of delivering significant economic value to the country. - Priority 3
Onshore Primary Applicants: Occupations outside the priority sectors, applications lodged by primary applicants in Australia receive priority over offshore applicants. - Priority 4
Offshore Primary Applicants: Applications lodged by primary applicants outside Australia. - Priority 5
Dependent Applications: All other applications lodged with accompanying family members receive the same priority as the primary applicant or are processed after primary applicant cohorts.
While the Directions are generally applied strictly, the Department may alter processing priorities in limited cases involving community safety, essential services, or international relations considerations.
What this means in practice
Many employers have asked whether urgent workforce needs, business justifications, or additional submissions can be used to obtain priority processing. Based on recent engagement with the Department of Home Affairs, the priority processing framework established under Ministerial Directions 121 and 122 is expected to be applied strictly with limited scope to alter the order of processing outside the prescribed categories.
The DHA has also noted that published processing times may not immediately reflect the impact of the new Directions, as they are based on applications finalised in the previous month. Businesses should therefore focus on workforce planning and immigration strategies that align with the new processing priorities rather than seeking exemptions.
The introduction of MD 122 is particularly significant, as the priority framework now extends beyond temporary skilled visas to a range of permanent and provisional skilled visa subclasses. Processing priorities should be considered as part of both short-term recruitment planning and long-term workforce and retention strategies.
Strategic options for employers
Although Ministerial Directions 121 and 122 limit the Department's ability to prioritise applications outside the prescribed framework, employers still have several options available to support timely workforce outcomes.
Consider onshore pathways
For occupations that do not fall within a priority sector, both Directions generally favour applications lodged by primary applicants who are already in Australia over those lodged offshore. Meaning employers could consider alternative temporary visa pathways that would enable a prospective skilled employee to enter Australia first and then subsequently consider lodging an onshore employer-sponsored visa application where appropriate.
Subject to individual’s circumstances and eligibility, these pathways may include (but are not limited to):
- Working Holiday Visas – subclasses 417/462 – noting that per the Minister’s latest guidance, processing times are anticipated to be in the range of three months
- Temporary Work (Short Stay Specialist) – subclass 400 visas
- Visitor Visas – noting, however, that Visitor Visas generally do not permit work and may be subject to conditions restricting further visa applications in Australia
Assuming the company then chooses to proceed with the lodgement of an employer sponsored application once the applicant is in Australia, the visa applicant should be granted with a Bridging Visa A (BVA) that allows them to remain lawfully in the country while their application is being processed. Depending on the visa subclass being applied for and the individual’s circumstances, they may be permitted to continue to work during this period on the bridging visa.
It is important to point out that the visa subclasses above generally require the applicant to demonstrate that they only intend to stay temporarily in Australia for a specific project, activity, or holiday. This should be their genuine intent at time of application and entry. Though should they subsequently decide to lodge an onshore, longer-stay application, they are generally not precluded from doing so.
Utilise the subclass 400 visa for urgent workforce needs
For employers with urgent operational or project-based needs, the subclass 400 visa may provide an effective interim solution while longer-term visa pathways (such as subclass 482 visa) are being pursued.
Where a subclass 482 application has been lodged and the employee remains offshore, employers may consider the Australia's Interest Stream where there are compelling circumstances requiring the applicant’s temporary stay.
To support such an application, employers must demonstrate that the country would miss out on a significant benefit if the individual were unable to enter Australia. This may may arise where the employee possesses specialist skills, knowledge, or experience that are critical to a project, business operation, or broader economic outcome – and where their contribution would support the nation's business, economic, cultural, or other development.
While the subclass 400 visa is not a substitute for an ongoing employment visa, it can provide a practical short-term solution for employers seeking to address urgent workforce needs.
Become an accredited sponsor
Businesses that anticipate sponsoring more than one overseas skilled worker throughout a financial year should consider applying for “accredited sponsorship” status, where eligible.
To qualify, businesses will generally need to demonstrate they are a standard business sponsor, have a high proportion of Australian workers (typically between 75% and 85% of total workforce), a strong nomination approval rate, annual turnover of at least AU$4 million, and no adverse monitoring outcomes. Employers must also demonstrate compliant employment practices including market-rate salaries and NES compliant employment contracts.
Accredited sponsors benefit from streamlined processing and faster assessment of certain low-risk applications, providing greater efficiency and certainty for business that regularly sponsor overseas workers.
Identify and demonstrate alignment with priority sectors
One of the most significant changes under MD121 and MD122 is the expansion of the priority sectors. With certain businesses, there may also be opportunities to demonstrate how a role supports a priority sector, even where the business does not operate directly within that industry.
For example: a recruitment consultant sourcing healthcare worker such as nurses, doctors, or allied health professionals may directly support the healthcare sector despite not working in a healthcare occupation. Similarly, IT professionals such as software engineers developing healthcare technology systems or ICT project managers implementing hospital patient management systems may contribute to a priority sector even though their occupations are not themselves identified as priority occupations.
Granted, this will not override the Directions, and the assessment is ultimately at the Department of Home Affair’s sole discretion, but carefully prepared submissions can provide valuable context regarding the role’s contribution to priority sectors and the employer’s workforce needs.
How Xemplo Legal is helping employers respond
Ministerial Direction 121 and Ministerial Direction 122 has reinforced the importance of strategic workforce planning and proactive immigration advice. At Xemplo Legal, we partner with employers to deliver strategic workforce and immigration solutions that align with the Australian government’s evolving migration priorities and support their long term business objectives.
As skilled visa processing priorities have evolved, we've consistently helped clients adapt by exploring alternative visa pathways, obtaining accredited sponsorship status, planning for longer processing timeframes, as well as preparing targeted submissions (where appropriate).
While there is no mechanism to bypass the Directions, there are opportunities to structure an immigration strategy in a way that better aligns with the government’s priorities and support employers' workforce needs. Whether that involves identifying alternative visa pathways, leveraging accredited sponsorship, demonstrating alignment with priority sectors, or developing long-term workforce planning solutions – we focus on finding practical and commercially effective outcomes.
Xemplo Legal does so much more than prepare visa applications. We take a strategic approach to immigration, helping employers adapt to policy changes, minimise disruption, and secure the talent they need to expand their business. If you require advice on employer-sponsored visas or workforce planning strategies, our experienced immigration lawyers are on hand to guide you through Australia’s evolving migration framework.
This article provides general information only and does not constitute legal advice. It does not take into account your specific circumstances and should not be relied on as a substitute for advice tailored to your situation. For advice about your particular circumstances, please contact Xemplo Legal.
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