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Below is an extract from the DIBP Policy Advice Manual (PAMS) regarding residence and short holidays:
4 Residence
4.1 Background To satisfy 887.212 the main applicant must have lived in a specified regional area for a total of at least two calendar years while holding one of the provisional GSM visas, or bridging visas associated with an application for a provisional GSM visa. Any time spent living in a specified regional area while in Australia on another visa cannot be counted.
4.2 Periods spent outside a specified regional Australia
In considering whether an applicant has been living in a specified regional area for at least two years case officers should note that short holidays during which the applicant visits a metropolitan city or travels overseas, do not detract from a period of residence.
For example, an applicant produces evidence that they have resided in a specified regional area from October 2005 until the time they apply for an 887 visa in November 2007. During that period they spent three weeks in 2006 and a further three weeks in 2007 travelling overseas. As this length of absence is not inconsistent with continuing to reside in a specified regional area the applicant satisfies 887.212. 4.3 Two years need not be consecutive
Although it will usually be the case, there is nothing in the Regulations to provide that the applicant must have lived for a concentrated two year period in a specified regional area. The two years may be achieved by adding together two or more periods of residency. However, see section 6 Complied with conditions of earlier visas.
For example, an applicant who lived in a specified regional area for 10 months and travelled overseas for 6 months before returning to a specified regional area for a further 14 months, would meet the residence requirement.
However, in relation to applicants who have been living elsewhere in Australia, see section 6 Complied with conditions of earlier visas.