This happened a few days back.. One of my friends had lodged their application for Residence visa under SMC. They had 140 points when submitted EOI and later the CO came back and said that they can only award 125 points... 1 month from the date that the CO mentioned about 125 points, she declined the application... By the way this was with Beijing branch...
He went back to the CO and asked if he can at least be given an opportunity to search for search a job or work visa.. She just said that they are not eligible...
I was pretty surprised to hear their story... This guy who applied, he has about 10 years of ICT experience in Infrastructure side...
Any suggestions or anything that you suggest.. or think what would have went wrong.. BTW, the CO even clarified that the background check went well...