From 31 October 2026, the rules that guide visa refusal and cancellation decisions on character grounds are changing. Ministerial Direction 123 (MD123) replaces Ministerial Direction 110, and it shifts the balance of how a person’s circumstances are weighed when their visa is at risk.

If you or a family member have a criminal record, are facing charges or have received a notice from the Department of Home Affairs about character concerns, this change matters to you. Below we explain what MD123 is, what has changed and what you can do to prepare.

What Is Ministerial Direction 123?

MD123 is a direction made under section 499 of the Migration Act 1958. It was signed by Tony Burke, Minister for Home Affairs and Minister for Immigration and Citizenship, on 18 September 2026 and commences on 31 October 2026, when Direction 110 is revoked.

MD123 does not change the character test itself. The test remains in section 501 of the Migration Act. What the Direction does is tell decision-makers how to apply that test and how much weight to give different factors. It binds both delegates of the Minister in the Department of Home Affairs and the Administrative Review Tribunal (ART).

Who Does MD123 Apply To?

MD123 is not a new visa and it does not affect every visa holder. It applies only when a decision-maker is considering:

Whether to refuse a visa application under section 501;
Whether to cancel a visa under section 501 (including discretionary cancellation); or
Whether to revoke a mandatory visa cancellation under section 501CA.

In practice, this most often affects people with criminal convictions, people serving prison sentences (whose visas may be cancelled automatically under section 501(3A)) and people whose conduct or associations have raised concerns, even without a conviction.

How Does a Character Decision Work?

A character decision usually has three stages:

The character test. The decision-maker considers whether the person passes the character test in section 501(6), for example, because of a substantial criminal record, past conduct, associations or a risk of future conduct.
Weighing the considerations. In most cases, failing the test does not automatically lead to refusal or cancellation. The decision-maker weighs the factors set out in the Direction, both for and against the person.
The decision. The decision-maker decides whether to refuse, cancel or restore the visa. Many (but not all) decisions can then be reviewed by the ART.

MD123 changes the second stage most significantly and also gives updated guidance on the first.

What Are the Four Primary Considerations under MD123?

Under Direction 110 there were five primary considerations. MD123 reduces this to four:

Protection of the Australian community from criminal or other serious conduct
Whether the conduct engaged in constituted domestic or family violence
The expectations of the Australian community
The best interests of minor children in Australia, including child victims

Primary considerations generally carry more weight than ‘other’ considerations. The consideration that has been removed from the primary list is the one many long-term residents relied on most: the strength, nature and duration of their ties to Australia.

What Has Changed from Direction 110?

The table below summarises the key differences.

Issue	Direction 110	Direction 123 (from 31 October 2026)
Ties to Australia	A primary consideration	Moved to ‘other’ consideration, so it generally carries less weight
Number of primary considerations	Five	Four
Risk of future conduct (Annex A)	Whether a person would or will engage in the conduct	Whether a person might engage in the conduct, a lower threshold
Domestic and family violence	Narrower definition	Broader definition, including stalking, image-based abuse, breaching protection orders, economic and psychological abuse and wider relationships such as carers and cultural family groups
Impact on Australian business interests	Had to be taken into account	Removed
Sentence length	Some offence types excluded from sentence weighting	Sentence imposed is relevant for all offence types
Hate and extremism ground	No guidance (the ground did not yet exist)	Detailed guidance on section 501(6)(baa)
Review body	Referred to the AAT	Refers to the Administrative Review Tribunal

Ties to Australia Are No Longer a Primary Consideration

This is likely to be the most significant change for long-term residents, including people who arrived as children. Ties are still considered, including the effect on immediate family members who are Australian citizens or permanent residents, length of residence and community contribution. However, they now sit alongside the other considerations rather than among the main factors. The Direction also indicates that length of residence may carry less weight where offending began soon after arrival or soon after the person turned 18.

A Lower Threshold for Future Risk

In January 2026, the Combatting Antisemitism, Hate and Extremism (Criminal and Migration Laws) Act 2026 amended section 501(6)(d) so that it refers to a risk that a person ‘might’ (rather than ‘would’) engage in certain conduct. MD123 brings the Direction’s guidance into line with this. In practice, decision-makers need to find a lower level of risk before the ground is engaged.

Domestic and Family Violence Is Its Own Primary Consideration

Domestic and family violence now stands as a separate primary consideration with a much broader definition. Importantly, it can be considered even where there is no criminal conviction. Decision-makers may rely on material such as protection orders and police records and must consider the frequency and escalation of the conduct, rehabilitation and the impact on victims and witnesses, particularly children.

Conduct Does Not Need to Result in a Conviction

MD123 introduces and defines concepts such as ‘serious conduct’ and ‘serious character concerns’. These can capture behaviour that was never prosecuted. This means a character assessment can extend well beyond a person’s formal criminal record.

More Offences Are Treated As Very Serious

Hate crime conduct and drug or property offences attracting a sentence of five years or more have been added to the conduct viewed very seriously. These sit alongside violent and sexual offences; crimes against women, children and vulnerable people; and offences against government officials.

Business and Employment Impact No Longer Counts As a Separate Factor

Under Direction 110, the impact of a decision on Australian business interests had to be taken into account. MD123 removes this. Employers who would lose a valued worker can no longer rely on that factor in the same way.

What Still Works in a Person’s Favour?

MD123 is stricter, but it does not remove the ability to present a strong case. Decision-makers must still consider:

Rehabilitation, including time since the last offence, absence of reoffending, acceptance of responsibility and efforts to address underlying causes
The best interests of minor children in Australia, which remains a primary consideration and now comes with more detailed guidance
Ties to Australia, as ‘other’ consideration, including family, length of residence and community contribution
Difficulties the person would face if removed, including in a third country they could be sent to
Non-refoulement obligations, where a person may face persecution or serious harm if returned

The Direction also states that information from independent and authoritative sources should be given appropriate weight. The quality and source of evidence therefore matter a great deal.

One practical point: The Direction indicates that decisions should not be delayed simply so a person can finish a rehabilitation program. Evidence of rehabilitation should be gathered and presented from the start.

What Should You Do If You Are Affected?

Do not ignore any notice. If you receive a Notice of Intention to Consider Refusal or Cancellation, respond within the timeframe stated. Deadlines in character matters are strict and short.
If your visa was cancelled automatically, lodge your revocation request within the time stated in the letter (generally 28 days).
Address all four primary considerations directly in your response, not only the factors that help you.
Gather evidence early, such as sentencing remarks, court documents, rehabilitation records, employment and character references, and evidence about your children and family.
Be truthful and complete in all character declarations on visa and citizenship applications.
If your matter is already underway, seek advice on how the change to MD123 on 31 October 2026 may affect your case and whether your submissions need updating.
Get legal advice before you respond. Character matters can lead to detention, removal and long-term exclusion from Australia.

How SALIA Lawyers & Associates Can Help

Character matters move quickly and the consequences are serious.

Our team can review your notice or cancellation, explain how MD123 applies to your circumstances and help you prepare a response that addresses every relevant consideration with strong supporting evidence.

Frequently Asked Questions

Is Ministerial Direction 123 a new visa or a new law?

No. MD123 is a direction under section 499 of the Migration Act. It guides how decision-makers apply the existing character test in section 501. It does not create a visa or change the character test itself.

When does MD123 start?

MD123 commences on 31 October 2026. It was signed on 18 September 2026 and replaces Direction 110 from that date.

Do my ties to Australia still count?

Yes. They are still considered, but as ‘other’ consideration rather than a primary one. This generally means they carry less weight than the four primary considerations.

Can I be affected without a criminal conviction?

Yes. The character test can be engaged by conduct or associations, and MD123 defines ‘serious conduct’ and domestic and family violence in ways that can apply without a conviction.

Can my employer still support my case?

Employer evidence can still be relevant, for example, to rehabilitation, community contribution and ties to Australia. However, the separate factor about the impact on Australian business interests has been removed.

Can I appeal a decision made under MD123?

Many decisions made by a delegate can be reviewed by the Administrative Review Tribunal, which must also apply MD123. Decisions made personally by the Minister are generally not subject to merits review, although judicial review may be available in limited circumstances. Time limits for review are very short, so act quickly.

Disclaimer: Please note that the information provided is intended as a general guide and should not be relied upon as legal or migration advice. As migration laws and regulations can change, we recommend consulting an Australian Lawyer or Registered Migration Agent for advice tailored to your circumstances.