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      Following the introduction of Ministerial Direction 119, the Australian Government  has now issued new Ministerial Directions, namely Directions 121 and 122. These Directions replace Ministerial Direction 119, introduced in late July 2026.

      Please check the GMS Flash Alert 2026-211 covering the previous update.

      In addition to the new Ministerial Directions, the government has also announced a broader package of proposed reforms focused on reducing Net Overseas Migration, directing skilled talent to areas of greatest national need, and strengthening program integrity and compliance.1 2

      WHY THIS MATTERS

      These new directions re-establish the order in which the Department of Home Affairs prioritises Skills in Demand (Subclass 482), remaining Temporary Skill Shortage (Subclass 482), and certain provisional and permanent visa applications.

      Ministerial Direction 121 is a notable improvement to Subclass 482 visa processing priorities, broadening priority processing beyond defence, healthcare, construction, and teaching.

      • Employers operating in infrastructure, mining, energy, oil and gas, agriculture, and related sectors may benefit from improved access to overseas talent, with priority occupations expected to be processed ahead of non-priority occupations.
      • Skills in Demand (Subclass 482) visa applications under the Specialist Skills stream are now included as a processing priority.
      • The department may consider requests for expedited processing outside the published priorities where compelling circumstances exist.

      The changes reinforce the government's focus on directing skilled migration towards occupations that support housing delivery, major projects, resources development, and critical workforce shortages.

      Ministerial Direction 122 introduces corresponding processing priorities for certain provisional and permanent visa applications. These priorities largely mirror those under Direction 121, except for the Specialist Skills stream, which applies only to Subclass 482 visa applications.

      Changes to the visa processing

      A key development is the expansion of occupations eligible for the highest processing priority for Subclass 482 visa applications.

      Under Direction 119, priority processing was largely focused on defence, healthcare, construction, and education-related occupations. Direction 121 broadens the highest processing priority to specified occupations in:

      • Construction (with additional occupations added).
      • Healthcare (with no changes to included occupations).
      • Teaching (with additional occupations added).
      • Agriculture (newly added).
      • Aquaculture (newly added).
      • Fishing (newly added).
      • Resources including mining, oil and gas (newly added).
      • Occupations supporting Australia's law enforcement interests (with no changes to included occupations).
      • Occupations supporting Australia's defence interests (the focus has shifted from occupation-based prioritisation to nominations by the Australian Defence Force or Department of Defence, or applications supported by a letter from either department).

      New processing priority order

      Under Direction 121, Subclass 482 visa applications shall generally be processed in the following order:

      • Primary applicants in the priority sectors listed above.
      • Applicants in the Specialist Skills stream of the Skills in Demand visa.
      • Other primary applicants who are in Australia at the time of application.
      • Other primary applicants who are outside Australia at the time of application and do not include accompanying family members in their visa application.
      • Remaining applications.

      Other proposed migration reforms

      Area of focus

      Proposed change

      Working Holiday Maker visas

      •       Introduction of a ballot system and annual caps for second and third-year Working Holiday Maker visas, prioritising those who undertake regional work

      •       Citizens of the United Kingdom are excluded from the ballot system and annual cap however, a slowdown in visa processing times for this cohort is expected as a result

      Student visas

      •       Restrictions on family members accompanying Student and Temporary Graduate visa applicants, with limited exemptions available

      •       Additional measures targeting "student visa hopping" to maintain integrity of the program

      Visitor visas

      •       Greater use of ‘No Further Stay’ conditions on Visitor visas to prevent further visa applications being lodged onshore (e.g., Partner visas)

      Skilled Migration – points test

      •       Reforms to the skilled migration points test, including recognition of trade qualifications linked to housing and construction activities

      Overstayers

      •       Increased compliance activity targeting unlawful non-citizens

      •       Increased penalties for unlawful non-citizens

      Beyond the new processing priorities, the government has also unveiled a wider suite of proposed reforms designed to reduce Net Overseas Migration, better align skilled migration with Australia's workforce needs, and strengthen compliance and program integrity.

      KPMG INSIGHTS

      The expansion of priority processing under Ministerial Direction 121 reinforces the importance of integrating immigration into wider workforce planning. KPMG can work with you to review upcoming recruitment needs and check your immigration strategy is structured to leverage the expanded priority occupation cohorts, helping to secure critical talent and reduce workforce gaps in an increasingly competitive labour market.

      In light of the new directions and proposed reforms, employers might wish to consider:

      • Reviewing immigration compliance arrangements, including sponsorship obligations and right-to-work checks.
      • Reviewing global mobility policies with regard to the proposed reforms.
      • Assessing overall workforce planning, particularly where changes to student visas and delays to Working Holiday visas may affect talent pipelines.
      • Monitoring processing trends as the effects of the new arrangements become clearer.

      KPMG would be pleased to assist with occupation mapping and reviewing immigration strategy to help organisations respond to the new priorities and future-proof their mobility programs.

      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).

      ENDNOTES:

      1  Immi Australia website, “Direction 121,” published on 18 September 2026.

      2  Immi Australia website, “Direction 122,” published on 18 September 2026.

      Contacts

      Maria Hrambanis

      Director

      KPMG Australia

      Bianca Go

      Manager

      AUSTRALIA

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      * Please note the KPMG International member firm in the United States does not provide immigration or labour law services. However, KPMG Law LLP in Canada can assist clients with U.S. immigration matters.

      The information contained in this newsletter was submitted by the KPMG International member firm in Australia.

      GMS Flash Alert is a Global Mobility Services publication of the KPMG LLP Washington National Tax practice. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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