A sponsor called us this month about a worker on a subclass 482 visa whose visa had been mandatorily cancelled. The business had one plan: a letter from the managing director explaining that the site could not run without him. Under the current guidance that letter is a listed consideration. From 31 October 2026 it is not. Ministerial Direction 123 removes the impact on Australian business interests from character decisions altogether.
In short: From 31 October 2026, a decision maker weighing a section 501 refusal, cancellation or revocation request no longer counts the effect on an Australian business. Employers can still help, but through the considerations that survive: risk, rehabilitation, children and community expectations.
What Direction 123 does to the list
Ministerial Direction 110 has guided character decisions since June 2024. It sets primary considerations and other considerations, and the Tribunal must follow it. The Minister signed Direction 123 on 18 September 2026. It commences on 31 October 2026 and revokes Direction 110 from that day. The text is not yet on the Department's website. We are working from the Migration Institute of Australia's summary of 22 September 2026 and will revise this note when the Direction is published.
| Consideration | Direction 110 | Direction 123 |
|---|---|---|
| Impact on Australian business interests | Listed as an other consideration | Removed |
| Ties to Australia, including employment | Primary consideration | Other consideration |
| Risk of future conduct | Whether the person would or will reoffend | Whether the person might reoffend |
| Drug or property offences with five years or more | Serious | Conduct viewed very seriously |
| Sentence as a measure of seriousness | Some categories excluded | Relevant across all offence types |
Two of those rows hit employers twice. The business impact row removes the direct argument. The ties row demotes the indirect one, because a worker's employment is part of their ties to Australia.
What an employer can still put forward
We see three routes that survive the change, and each depends on the employer speaking about the worker rather than about the business.
Protection of the community stays the first primary consideration, and the risk test now asks whether the person might reoffend. An employer who has supervised the worker daily since the offending can give direct evidence: attendance, conduct, drug and alcohol testing where the site runs it, incident records, and the structure the job provides. That evidence goes to risk, not to the balance sheet, so it remains relevant.
Where the worker completed a program, counselling or treatment, the employer can confirm the time off taken, the return to work and any observed change. Completed and documented rehabilitation carries weight. A plan to seek help later does not, and the Tribunal said as much in Li this month.
The best interests of children in Australia remain primary. Where the worker's income supports children here, the employer can confirm the employment, the hours and the earnings. That is not a business impact statement. It is evidence about the children's circumstances, and it belongs under a consideration that Direction 123 keeps.
The commercial side we deal with alongside the visa
A cancellation does not only remove a worker. It removes an employee on a sponsorship with obligations attached. Our commercial practice sees three problems arrive with the migration file.
Our migration practice page covers employer sponsorship, and our note on a sponsored worker referred to the character unit explains the earlier stage of the same process.
Before or after 31 October: a fork
When is the decision on your worker's matter realistically expected?
Timeline for a sponsor with a matter on foot
- This weekConfirm where the matter sits and the likely decision date. Diarise 31 October.
- Within two weeksBrief the employer's witness. The statement should describe supervision, conduct and any programs, with dates. It should not argue that the business will suffer.
- Before the decisionReview the contract and the nomination with us, so the commercial position is settled whichever way the character decision goes.
- After the decisionIf revocation is refused, review rights run on short time limits. Our note on review at the Tribunal after a refusal sets them out.
Is a worker with no criminal record affected by any of this?
Only if a character matter arises. Direction 123 guides decisions under sections 501 and 501CA. It does not change sponsorship obligations, the character test itself, or the requirements for a nomination.
Source: Migration Institute of Australia, MIA Notice 18 of 22 September 2026, summarising Ministerial Direction 123 and its changes from Direction 110. The Direction itself was not yet published on the Department of Home Affairs website when this note was written.
Frequently asked questions
Can a business impact statement still be lodged after 31 October?
It can be lodged, but Direction 123 removes business interests from the considerations a decision maker must take into account, so it will not weigh in the worker's favour as it does under Direction 110.
Does the worker's job still count as a tie to Australia?
Yes, but ties to Australia move from a primary consideration to an other consideration, so they carry less weight against community protection and the other primary considerations.
What employer evidence still helps?
Evidence about the worker: supervised conduct since the offending, participation in rehabilitation, and the employment that supports children in Australia. Each goes to a consideration Direction 123 keeps.
What happens to the nomination if the visa is cancelled?
The nomination does not fall away automatically. Sponsorship obligations, including notification of changes, continue, and the business should decide with advice whether to withdraw it or hold it pending review.
General information as at 22 September 2026, based on the Migration Institute of Australia's summary of Ministerial Direction 123. Not legal advice. Outcomes in character matters depend on the facts of each case.