Australia – Changes to Visa Processing Priorities

WHY THIS MATTERS

The introduction of Ministerial Direction 119 represents one of the most significant changes to skilled visa processing priorities in recent years.

The previous framework provided priority processing for:

• Employer-sponsored positions located in designated regional areas; and
  
  
• Sponsors holding Accredited Sponsor status.

However, under the new direction, those priority settings have been substantially revised. Positions in regional Australia and sponsors with Accredited Sponsorship are no longer priority factors. Priority is now given to occupations in law enforcement and defence, as well as construction, and applicants who are currently in Australia.

The new direction applies not only to applications lodged from 25 July 2026 onwards, but also to applications already on hand that were not been finally determined by that date.

As a result, employers who have historically benefited from regional priority or Accredited Sponsor status may experience different processing outcomes as applications are assessed under the new arrangements. This will need to be factored into proposed start dates and workforce planning.

KPMG INSIGHTS

Ministerial Direction 119 reflects a clear shift in the government's processing priorities, with practical implications for workforce planning and recruitment strategies.

• Construction elevated to priority status: Construction occupations now receive the same processing priority as healthcare and teaching, helping employers access critical talent for housing and infrastructure projects more quickly.
  
  
• Regional priority removed: Regional location will no longer provide a processing advantage, requiring regional employers to allow more time for skilled visa recruitment.
  
  
• Onshore applicants prioritised: The introduction of applicant location as a processing priority factor means that, in many cases, individuals already in Australia may be granted visas more quickly than comparable applicants located overseas. While this may benefit employers seeking to retain or mobilise existing onshore talent, it could create challenges for businesses relying on offshore recruitment to address skills shortages. Because onshore candidates are often already working in Australia and available to commence quickly, longer processing times for offshore applicants may delay access to critical skills, extend recruitment timelines, and disrupt workforce planning, particularly in sectors facing persistent talent shortages.
  
  
• Reduced benefit of Accredited Sponsor status: Accredited Sponsors may no longer see the same processing advantages, particularly for non-priority occupations and offshore applicants.
  
  
• Skills in Demand visas brought into the framework: Occupation and applicant location will play a greater role in processing outcomes, making workforce planning and role classification increasingly important.

In light of the changes, entities might wish to consider the following:

• Employers could review upcoming workforce needs, lodge applications as early as possible, and build greater flexibility into recruitment timelines.
  
  
• Organisations reliant on offshore talent could reassess hiring strategies, as processing outcomes are now more heavily influenced by occupation priority and applicant location than by regional location or Accredited Sponsor status.

If readers have any questions or concerns about this update and potential impacts, they should consult with a member of the KPMG Australian immigration team (see the Contacts section).