Short answer to that is there is a points system that indicates if you will qualify for immigration. If you have over 120 points, you technically qualify for entry "on your own merits" on a 175 visa. That doesn't mean you will be granted one, only that you qualify to apply. If you have I think it's over 100, or maybe over 110 points, you can apply to the state you wish to move to for state sponsorship. That will give you your extra points, and if you go that route you are applying for a 176 visa. The conditions on the 176 indicate that you have to live in that state for a minimum of 2 years, although that's within reason, if you absolutely cannot find work, or it's financially unreasonable I think you can move. State sponsorship basically means that the state is endorsing your application, they're looking at your skills and saying, yes we need you here, we'll endorse this.
You should read a lot more about it here:
http://www.immi.gov.au/ before you get much further in your decisions.