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Your wife would apply for both the temporary and permanent visas (309/100) at the same time. Under the circumstances it is most likely that both visas will be granted and that she will go straight to PR.

The children are already Australian citizens and can just apply for an Australian passport. They cannot and must not be included in the visa application.

Although your case is solid, don’t take the application lightly. You need good evidence regardless.

The process can take a year or longer, although there seems to have been some improvement in processing times lately.
 
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not sure I agree with that if someone can read and write and has a modicum of
intelligence and able to follow instructions and avoid being careless . I have done own conveyancing when buying and selling property in last 40 years in OZ and in UK
without any problems apart from occasional obstructive behaviour by solicitor which i brush off as they fight to keep their easy bread and butter money ! ( smile ) . sad that only about 5% or less people do it .
Not sure if I'd put preparing and lodging a visa application in the same basket as conveyancing. But I agree insofar that if your case is straightforward, you are able to correctly interpret the requirements, you are computer literate, organised and have plenty of ttime on your hands, it shouldn't be too hard to lodge your own application.

The same can be said for tax returns, car maintenance and lots of other things, although I draw the line at dentistry.

Some people prefer to pay a professional to take care of business, while others prefer to do stuff themselves. With something as life-changing, complex and expensive as Immigration, seeking professional advice is certainly worth considering.

Interestingly, I find that many professional people ( lawyers included) who are probably perfectly capable of doing the application themselves, prefer to let a registered migration agent deal with it.
 
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So as per Nick above, theres plenty of reasons to use an RMA.
I have come across many cases, where even a simple consultation could have prevented a lot of heartache and expense. I also come across cases where people have not responded in time to requests for further information, could not be contacted by phone or missed emails from the Department and then ended up having their application refused. It is not just a matter of preparing and lodging the application. It is also the ongoing monitoring, which can take up to 2 years.

I pay my accountant good money to do my tax for me. He usually saves me money. Furthermore, it means I do not have to deal with the ATO and other regulatory bodies myself or keep an eye on deadlines for lodgement of company documentation.
 
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