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Australia’s Visa Character Test Tightens on 31 October

Australia’s new Ministerial Direction 123 takes effect on 31 October 2026 and changes how decision-makers weigh character when they consider refusing or cancelling a visa. It replaces Direction 110. Law firm summaries say it lowers the future-risk threshold, moves a person’s ties to Australia down the list of considerations, and adds a hatred and extremism ground. It targets character decisions, not routine skilled or student applications.

Contents

What Direction 123 replaces

A ministerial direction tells decision-makers how to weigh factors when the law gives them discretion. According to Clark Hill’s September APAC recap, Direction 123 replaces Direction 110 for character decisions under sections 501 and 501CA of the Migration Act. Separate directions, 121 and 122, set processing priorities for skilled visas from 19 September 2026, and those are a different matter from this one.

The main changes

Clark Hill lists these changes: primary considerations fall from five to four, ties to Australia become a secondary consideration, a new hatred and extremism character ground is added at section 501(6)(baa), and the future-conduct threshold moves from “would” or “will” to “might”. The definition of domestic and family violence is broadened to cover image-based abuse, stalking and breaching court orders. The sentence-weighting carve-out is removed, and the impact on Australian business interests is no longer a listed consideration.

AHC Lawyers, in its comparison of Direction 123 and 110, makes the same points and argues the new threshold lowers the Department’s burden of proof. That view comes from a law firm’s marketing article rather than the text of the direction, and the article does not say how pending cases are treated. Read the direction itself on the Department of Home Affairs site or ask a registered migration agent.

Who is and is not affected

Direction 123 applies when a decision-maker is already considering refusal or cancellation on character grounds. A holder with no character concerns does not face a new test simply because the direction exists. The people most exposed are those who have received serious criminal sentences, family violence orders or other adverse findings, and long-term residents who previously relied on their family and community ties.

A worked example

Consider a hypothetical case. Diego, a Mexican welder on a skilled visa, has no criminal record and a clean history. Nothing in Direction 123 changes his application. A different visa holder who has lived in Australia for decades and receives a serious conviction would find that long residence now carries less weight than it did under Direction 110. The difference lies in the facts of the case, not the nationality.

What visa holders can do

Keep records of any police checks, court outcomes and orders, and disclose them accurately in every application. Misleading answers can cause more harm than the underlying issue. If you hold a visa and have any adverse history, get advice before your next application or renewal. For students affected by other recent changes, see our report on Australia’s 2 October student visa rules, and use the visa eligibility checker to compare routes.

Employers sponsoring staff should note that the direction concerns the individual visa holder, not the sponsor. Even so, a sponsored worker facing a character decision can lose work rights quickly, which affects the business. Both law firms stress that outcomes depend on the specific facts, and that decisions made before 31 October may be handled under the earlier direction, though the sources we read do not confirm transitional detail.

Direction 123 questions

When does Ministerial Direction 123 start?

31 October 2026, replacing Direction 110, according to Clark Hill and AHC Lawyers.

Does it change the rules for ordinary skilled visa applications?

No. It applies to character-based refusal and cancellation decisions, not to standard eligibility criteria.

What does the move from ‘would’ to ‘might’ mean?

Law firms say it lowers the threshold for deciding that a person may engage in unacceptable conduct in the future.

Are ties to Australia still considered?

Yes, but as a secondary rather than a primary consideration, according to the law-firm summaries.

What new ground does it add?

A hatred and extremism character ground under section 501(6)(baa), according to Clark Hill.

Where can I read the direction itself?

On the Department of Home Affairs website, or ask a registered migration agent.

Sources