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Yes. As a permanent visa, the subclass 866 can lead to citizenship once you meet the residence and other eligibility requirements.
Because the Protection visa grants permanent residence, it puts you on the standard pathway toward Australian citizenship. You generally need to live in Australia as a permanent resident for a qualifying period before you can apply.
Citizenship also requires meeting residence, character and (for most applicants) language and citizenship-test requirements. The Protection visa itself is the foundation, with citizenship being a later step once you have settled and met the time-based criteria.
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