NIV Tier 1 vs Tier 2 Sectors: Direction 120 Explained
The National Innovation Visa priority sectors matter—but they are often misunderstood as an eligibility list. They are not.
Ministerial Direction 120, which took effect on 25 July 2026, sets the processing order for Class BX / Subclass 858 matters, including the National Innovation Visa (NIV). It also identifies the current Priority 1–4 architecture and indicators relevant to exceptional and outstanding achievement.
For the full visa criteria, see our National Innovation Visa (Subclass 858) hub.
What is Ministerial Direction 120?
Direction 120 is the current ministerial direction governing processing priorities for Subclass 858 applications. It covers National Innovation Visa applications as well as legacy Distinguished Talent and Global Talent Subclass 858 applications.
It is a processing direction. It does not rewrite the statutory eligibility criteria.
What are the four main NIV priority levels?
- Priority 1: exceptional candidates from any sector who are global experts and recipients of international top-of-field level awards.
- Priority 2: candidates from any sector nominated by an expert Australian Commonwealth, State or Territory Government agency.
- Priority 3: exceptional candidates in a Tier 1 sector.
- Priority 4: exceptional candidates in a Tier 2 sector.
Other Subclass 858 applications may sit outside Priorities 1–4 and be processed later in the order.
What are the Tier 1 National Innovation Visa sectors?
The current Tier 1 sectors are:
- Critical Technologies
- Renewables and Low Emission Technologies
- Health Industries
Tier 1 sector candidates with exceptional and outstanding achievements fall within Priority 3.
What are the Tier 2 sectors?
The current Tier 2 sectors are:
- Agri-food and AgTech
- Defence Capabilities and Space
- Education
- Financial Services and FinTech
- Infrastructure and Transport
- Resources
Exceptional candidates in Tier 2 sectors fall within Priority 4.
Does working in a Tier 1 sector make you eligible?
No. Sector alignment alone does not establish the legal criteria. A software engineer working in critical technologies, a doctor working in health, or an executive in renewable energy does not automatically qualify simply because the sector is prioritised.
The candidate must still demonstrate an internationally recognised record of exceptional and outstanding achievement, current prominence, Australian benefit, the ability to establish and the other visa requirements.
Can someone outside Tier 1 and Tier 2 qualify?
Potentially, yes. The Subclass 858 legislation expressly recognises achievement in a profession, sport, the arts, or academia and research. Current Home Affairs invitation data also separately records invitations in Sports and the Arts.
Priority sectors therefore should not be presented as if they were the only legally eligible fields.
What does the latest sector invitation data show?
Home Affairs reported the following invitations for April to June 2026:
- Critical Technologies: 122
- Renewables and Low Emission Technologies: 33
- Health Industries: 45
- Agri-food and AgTech: 9
- Education: 6
- Defence Capabilities and Space: 7
- Financial Services and FinTech: 14
- Infrastructure and Transport: fewer than 5
- Resources: fewer than 5
- Sports and the Arts combined: 6
Those figures describe one three-month reporting period. They should not be treated as guaranteed future allocation ratios.
Priority 3 vs Priority 4: what is the practical difference?
Direction 120 places Tier 1 cases ahead of Tier 2 cases in the processing order. That can affect timing and invitation strategy, but it should not lead candidates to distort their actual field.
A credible Tier 2 profile with strong evidence is preferable to an artificial Tier 1 claim that does not withstand scrutiny.
How should a candidate define their sector?
The sector should emerge from the candidate’s actual area of achievement, not from keyword selection. The evidence should make the connection obvious through the applicant’s work, patents, research, ventures, leadership, industry role or recognised contribution.
Direction 120 and the EOI
The Department considers NIV EOIs by reference to claimed achievement indicators and program priorities. That means a well-prepared EOI should accurately identify the candidate’s strongest achievement profile and sector.
Because the EOI cannot be updated with additional documents after submission, sector and priority analysis should occur before filing.
Related NIV priority guides
- Priority 1: international top-of-field awards
- Priority 2: government nomination
- NIV EOI and invitation process
National Innovation Visa priority advice
Priority analysis is one part of a complete NIV assessment. The stronger question is whether the candidate’s record and evidence meet the legal standard while also fitting the current processing architecture.
Contact Emigrate Lawyers for a confidential NIV profile assessment.
Official sources
Last reviewed: 24 September 2026. General information only; not legal advice.
Madhab Kharel
Principal Lawyer & Director, Emigrate Lawyers
Madhab Kharel is the Principal Lawyer and Director of Emigrate Lawyers, an Australian law firm assisting clients across Australia and internationally. His migration law practice includes Partner Visas, Protection Visas, visa refusals and cancellations, Administrative Review Tribunal matters, health and character issues, Schedule 3, Section 48, sponsorship limitations and employer-sponsored migration. He regularly advises clients with complex immigration histories and matters requiring detailed legal submissions and evidence strategy.
Reviewed by Madhab Kharel, Principal Lawyer
Date reviewed: 24 September 2026
