My present understanding based on conversations I have had is that:
* Those with "old style" subclass 176 visa sponsorship will not automatically transition to the higher priority SMP sponsorship.
* As such those who wish to be pushed up the processing pecking order will be required to seek sponsorship again, once the SMPs are published.
* It remains to be seen whether DIAC will allow sponsorship under a SMP to replace "old style" sponsorship on subclass 176 visa applications that are already lodged.
* It appears that subclass 176 visa applications supported by "old style" sponsorship will not be possible once the SMPs are in issue. Hence the SA Government's communication of earlier today requiring all visa applications with old style sponsorship to be submitted before 07/07/2010 (I will write an article for Go Matilda News discussing this later today).
This appears to stem from the Department of Immigration's use of quotas within the SMP sponsorship regime to control the number of applications under this higher priority category.
I hasten to add that in the absence of published material from DIAC I can only interpret what I am hearing, but I hope the above gives some direction in the fog of confusion that currently exists.