Australia Introduces a New 4-Tier Selection Model for Subclass 189

The Australian Government has updated the Skilled Independent (Subclass 189) visa invitation system for the 2025–26 program year. A new tier-based selection framework now determines how occupations are prioritised, how many invitations are issued, and how quickly applicants may receive an invitation.

For skilled migrants living in Melbourne, Sydney, Brisbane, Perth, Adelaide and other major Australian cities, understanding this reform is critical for building a successful Permanent Residency (PR) strategy.

While Subclass 189 remains a points-tested visa, invitation prospects now depend heavily on your occupation’s placement within one of four priority tiers.

Key Changes at a Glance

• A new four-tier occupation structure determines invitation priority.

• Occupation ceilings are calculated using tier multipliers (4%, 2%, 1%, 0.5%).

• Employer-sponsored visa numbers influence 189 allocations.

• Invitation rounds will run quarterly, with possible targeted rounds.

• Points matter — but occupation tier now significantly impacts outcomes.

 

Why the System Was Changed

The Department of Home Affairs restructured the model to:

• Improve transparency in invitation timing

• Reduce duplication between 189, 190, 491 and employer-sponsored visas

• Address oversupply in certain occupations

• Align migration intake with labour market demand

Previously, high-volume occupations often dominated invitation rounds. The new framework introduces structured ceilings to maintain diversity and economic balance.

How the New Allocation Formula Works

The Department uses a structured calculation:

Occupation Allocation = Workforce Size × Tier Percentage – Employer-Sponsored Grants (Previous Year)

If the final result is:

• Between 1 and 499 → Minimum 500 invitations apply

• Zero or negative → No 189 invitations issued

 

Illustrative Example (Hypothetical)

32,000 × 1% = 320
320 – 180 = 140

Because the result is below 500 but above 0, the minimum threshold applies.

Final Allocation: 500 invitations

This approach ensures proportional allocation while preventing dominance by oversupplied occupations.

Breakdown of the Four Tiers (With ANZSCO Codes)

Tier 1 – Highest Priority (4% Multiplier)

Tier 1 includes occupations with long training pathways and critical workforce shortages, primarily in healthcare and specialist medicine.

Selected Tier 1 Occupations

These occupations receive the largest invitation ceilings under the 189 program.

Tier 2 – High Priority (2% Multiplier)

Tier 2 includes occupations vital to education and community wellbeing.

Selected Tier 2 Occupations

These occupations receive moderate but stable invitation allocations.

Tier 3 – Diverse Skilled Occupations (1% Multiplier)

Tier 3 covers a broad range of skilled professions across engineering, science, construction and trades.

Selected Tier 3 Occupations

Invitation prospects depend on workforce size and employer sponsorship trends.

Tier 4 – Oversupplied Occupations (0.5% Multiplier)

Tier 4 includes occupations with high EOI volumes and tighter ceilings.

Selected Tier 4 Occupations

Applicants in Tier 4 — particularly in ICT and accounting across Melbourne, Sydney and Brisbane — may face higher competition and should consider parallel 190 or 491 strategies.

Invitation Rounds for 2025–26

The new system introduces a structured schedule:

Quarterly General Invitation Rounds

Regular distribution of invitations across tiers.

Optional Targeted Rounds

May address urgent labour shortages.

Mid-Year Review

The Department may adjust allocations based on:

• Invitation-to-lodgement conversion rates

• Ceiling utilisation

• Labour market shifts

This makes the 189 system more dynamic and data-driven.

What Skilled Migrants in Major Cities Should Do Now

1. Confirm Your ANZSCO Code

Ensure your nominated occupation accurately matches your job duties and skills assessment.

2. Check Your Occupation Tier

Tier placement significantly affects invitation prospects.

3. Strengthen Your Points

Consider:

• NAATI CCL

• Professional Year

• English upgrades

• Partner skills

4. Plan Multiple Pathways

Do not rely solely on 189. Assess:

• Subclass 190 (State Nomination)

• Subclass 491 (Regional)

• Employer-sponsored options

 

Final Thoughts

The 2025–26 Subclass 189 reforms represent one of the most structured shifts in Australia’s skilled migration program in recent years.

For skilled migrants in Melbourne, Sydney, Brisbane and other major cities, PR success will now depend on:

• Occupation tier positioning

• Accurate ANZSCO alignment

• Strong points profile

• Strategic migration planning

Points still matter — but in 2025–26, your occupation category matters just as much.