You are confused by the information - it states that if you receive a nomination that your will be "AUTOMATICALLY" be invited.
You get 5 points for State Nomination - therefore people that only have 60 points these extra 5 points will mean that they are now eligible as they pass the points test.
Each state/territiry will look at all applicants and assess them against their own State Migration Plans. It is stated on the Skillselect Migration blog:
"State and territory governments will still assess potential applicants before they nominate them. The actual nomination can only occur after an EOI has been lodged." http://migrationblog.immi.gov.au/201...tion-programs/
They way I think it may work as a state will use the skillselect to identify people they wish to nominate - they will be asked to apply for nomination (state sponsorship) by that same way as it currently is. If they are successful for nomination/sponsorship they will automatically be invited to apply.
Once EOI comes in to effect - there will never be a Cat 5 again!! People who are in CAT 5 are there because:
1. occupation is no longer on the SOL 1 or 2
2. occupation is now on SOL 2 but they do not have State Sponsorship
3. they had SS but now their occupation is no longer on the State Migration Plan.
DIAC have stated that they are planning to start processing CAT 5 (they have started with some onshore applications) - but with the change in Visa numbers there could be a chance that they might cap and cease llike they did in Feb 2010 after they changed the visa numbers in Sept 2007.
Thank you I've only began researching the whole emigration thing a few months back, thought I'd just about got my head round it and then they announced the massive changes coming with Skillselect - typical! Thanks for clarifying your understanding, I'm pleased my concerns appear to be unfounded. We plan on beginning the process with our skills assessment probably in June(ish) so skillselect will be very applicable for us. On a separate note, I can't believe how much this is taking over my life! I don't seem to have the ability to concentrate on anything else atm!