Clarification on 491 Family Sponsorship Requirements – Do the sponsor and the applicant need to reside in the same State/Territory?

Subclass 491 Provisional Regional Visa was introduced on November 16, 2019 as part of several reforms to regional skilled migration.
There are two streams available under this program
- State Nominated Stream
- Family Sponsored Stream
Whilst each State and Territory appear to cover the requisite State/Territory Specific requirements, the Regulations regarding Family Sponsored Stream appear to be broad and open to interpretation.
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