Major Change! New Interpretation of the 491 Visa Residency Requirement

In Australia’s immigration framework, the 491 Skilled Work Regional (Provisional) visa has long held a unique role, offering skilled workers a pathway to permanent residency. Recently, however, a statement released by the Migration Institute of Australia (MIA) has stirred major discussion in the migration community—a significant clarification has emerged regarding the residency requirement for transitioning from the 491 to the 191 visa: applicants are not required to reside in a designated regional area for three full years.

1. Breaking the Myth: The Truth About the Residency Rule

For years, it was widely believed that 491 visa holders needed to physically live in a designated regional area in Australia for three consecutive years in order to be eligible for the 191 Permanent Residence (Skilled Regional) visa. But this is not entirely accurate.

In reality, the key requirement is compliance with condition 8579, which states that applicants must live, work, and study in a designated regional area (DRA)—only when they are physically onshore in Australia. This means if the visa holder is overseas, the residency requirement effectively does not apply.

To illustrate: imagine Mr Wang is granted a 491 visa while still offshore and remains overseas for the next three years without ever entering Australia. According to the updated interpretation, he may still be eligible for the 191 visa—as long as he complied with all visa conditions, which in this case includes never breaching 8579 by entering Australia and residing outside a designated area.

This clarification significantly overturns the traditional understanding of the 491 visa’s residency obligations.

2. Policy Intent vs Reality: A Clash of Goals

The original aim of the 491 visa was to encourage skilled workers to settle in areas outside major cities like Sydney, Melbourne, and Brisbane—helping regional Australia address labour shortages and support population growth. However, under this new interpretation, the visa’s regional requirement appears to be weakened.

In theory, some applicants may now obtain permanent residency without ever living or working in a regional area, seemingly contradicting the policy’s original purpose. On the other hand, this change may be welcomed by those who, due to personal or family reasons, cannot reside in regional Australia long-term but still hope to obtain permanent residency.

3. Don’t Overlook the Details: Key Compliance Points

While the three-year physical residency rule has been relaxed, other aspects of condition 8579 remain in place. For example, temporary absences from a designated regional area—for holidays, work-related travel, or training—are generally permitted.

However, if a visa holder spends more than 90 days in total outside a DRA within a 12-month period, or is absent for more than 60 consecutive days, they may be asked to justify their absence with supporting evidence.

Additionally, since the 491 visa is granted via state or territory nomination, most jurisdictions require a formal commitment to live and work in the nominating region. If state governments tighten compliance and begin requesting regular proof of residence, those who fail to demonstrate their commitment may risk losing their nomination—and potentially their visa.

4. A New Opportunity for Offshore Applicants

For skilled workers who meet the 491 visa criteria—especially those currently offshore—this clarification is a significant positive development. As long as applicants:

• hold the 491 visa for at least three years,

• provide three years of tax assessments (NOAs) within the five-year visa period, and

• comply with all visa conditions,

then they may be eligible to apply for the 191 Permanent Residence (Skilled Regional) visa—potentially without living in a regional area for three full years.

That said, it’s important not to become complacent. Immigration policy is subject to change, and what is permitted today may be revised tomorrow. Staying informed and strictly complying with all visa conditions remains the safest path to a successful migration outcome.

If you have any questions or would like professional assistance, please feel free to contact us at Riverwood Migration (Email: [email protected]). We are committed to providing transparent, expert migration services to help you achieve your dream of moving to Australia.