The test puts the onus on visa applicants, and visa holders already in Australia, to prove that they are of good character.

The provision also contains discretionary powers to either refuse or cancel visas when issues of character arise.

You will fail the character test if:

* you have a substantial criminal record
* you have, or have had an association with an individual, group or organisation suspected of having been, or being, involved in criminal conduct
* there is a significant risk that you will engage in criminal conduct in Australia; harass, molest, intimidate or stalk another person in Australia; vilify a segment of the Australian community; or incite discord in the Australian community or in a segment of that community
* with regard to your past and present criminal conduct, you are found not to be of good character
and
* having regard to your past and present general conduct, you are found to be not of good character.

You are deemed to have a substantial criminal record if you have been any one of the following:

* sentenced to a term of imprisonment for 12 months or more
* sentenced to either death or life imprisonment
* sentenced to two or more terms of imprisonment (whether on one or more occasions), where the total of those terms is two (2) years or more
* acquitted of an offence on the grounds of either unsoundness of mind or insanity and, as a result, you have been detained in a facility or institution,

If your visa is cancelled on criminal grounds you will be permanently excluded from Australia.

A lot of it depends on the actual crime. Basically, they're keen to prevent ex-inmates from getting visas, but for non-custodial offenders it's often fine.

http://boards.gapyear.com/index.php?...&f=70&t=266431