Employer Nomination Scheme (Subclass 186): Permanent Visa Guide 2026

Employer Nomination Scheme (Subclass 186): Permanent Visa Guide 2026

The Employer Nomination Scheme (Subclass 186) is Australia's primary employer-sponsored permanent residency visa. It allows skilled workers nominated by their Australian employer to gain PR without a points test. The visa costs $4,640 AUD and has three streams: Direct Entry (for skilled workers with a skills assessment), Temporary Residence Transition (for existing 482 visa holders), and Labour Agreement. Most applicants must be under 45, and the employer must demonstrate a genuine need for the role.

Quick Facts

The Three Streams

Direct Entry Stream

For skilled workers who haven't previously held a 482/457 visa with the same employer.

The Direct Entry stream is for workers applying directly for permanent residence. You don't need to have worked for the employer on a temporary visa first — though many applicants do transition from other visa types.

Requirements:

• Nominated by an approved Australian employer
• Positive skills assessment from the relevant assessing authority
• At least 3 years of relevant work experience (post-qualification)
• Competent English (IELTS 6.0 each band, or equivalent)
• Under 45 years of age at time of application
• Meet health and character requirements

Cost breakdown:

• Visa application: $4,640 (main applicant)
• Additional applicant (18+): $2,320
• Additional applicant (under 18): $1,160
• Nomination fee: $540 (paid by employer)
• Skilling Australians Fund levy: $3,000–$5,000 (paid by employer)

Temporary Residence Transition (TRT) Stream

For current or former 482/457 visa holders who have worked for their employer for at least 2 years.

This is the most common stream and the natural endpoint of the 482 to 186 pathway. If you've been on a 482 (or old 457) visa working for the same employer for 2+ years, the TRT stream is your route to PR.

Requirements:

• Held a 482 or 457 visa for at least 2 years while employed by the nominating employer
• Currently working for the employer in the same occupation
• Under 45 at time of application (some exemptions)
• Competent English (IELTS 6.0 each band, or equivalent)
• Employer willing to nominate for permanent position
• No skills assessment required (already done for 482)
• Meet health and character requirements

The TRT stream is generally faster and more straightforward than the Direct Entry stream because the relationship between employer and worker is already established.

Labour Agreement Stream

For workers sponsored under a formal Labour Agreement between their employer and the Australian government.

Labour Agreements are specific, negotiated arrangements that allow employers to sponsor workers under conditions not available through standard streams. They're most common in industries with chronic skill shortages — meat processing, horticulture, aged care, and some regional industries.

Requirements vary based on the specific Labour Agreement.

Employer Requirements

The employer plays a central role in the 186 visa. They must meet strict criteria.

Approved sponsor status: The employer must be (or become) an approved Standard Business Sponsor with the Department of Home Affairs.

Genuine position: The role must be a genuine, full-time position that exists to meet a real business need. The department scrutinises positions that appear to be created solely for visa purposes.

Market salary: The employer must pay at least the Annual Market Salary Rate — equivalent to what an Australian worker would earn in the same role. This applies for the life of the position.

Skilling Australians Fund (SAF) levy: The employer pays a one-off levy:

• $3,000 for businesses with turnover under $10 million
• $5,000 for businesses with turnover of $10 million or more

Nomination: The employer lodges a nomination application specifying the position, salary, and the worker being nominated. This is a separate application from the worker's visa application.

No cost recovery: Employers cannot pass sponsorship costs (nomination fees, SAF levy, migration agent fees) on to the worker. This is a legal requirement — any attempt to recover these costs from the worker is a breach of sponsor obligations.

How the Application Process Works

The 186 visa involves two concurrent applications.

Step 1: Employer lodges a nomination.

• Complete nomination application through ImmiAccount
• Pay nomination fee ($540) and SAF levy
• Provide evidence of the genuine position, salary, and business operations
• Processing: 1–6 months

Step 2: Worker lodges visa application (can be lodged at the same time as the nomination).

• Complete visa application through ImmiAccount
• Provide skills assessment (Direct Entry only), English test results, qualifications, and work history
• Health examinations at a Bupa Medical Visa Services clinic
• Police clearances from every country lived in for 12+ months in the last 10 years
• Processing: 2–12 months

Both applications must be approved for the visa to be granted. If the nomination is refused, the visa application is typically refused as well.

Processing Times

Processing varies significantly between streams.

The TRT stream is generally faster because the worker has already been in Australia on a 482, with prior health checks and a known employment record. Direct Entry requires more verification since it may be the worker's first Australian visa.

Age Exemptions

The standard age limit is under 45 at the time of application. However, exemptions exist for:

• Academics nominated for a university position (ANZSCO Group 2421)
• Scientists nominated for a government research agency position
• Holders of 457 or 482 visas who were earning above a specified salary threshold (currently $162,000+ annually)
• Medical practitioners in specific shortage areas
• Workers nominated under certain Labour Agreements

If you're 45 or over, check whether your specific circumstances qualify for an exemption. The age limit is firm for most applicants.

What Happens After You Get the 186

The Subclass 186 grants you permanent residence in Australia. Here's what that means.

Work rights: Unrestricted. You can work for any employer, in any occupation, anywhere in Australia. You're no longer tied to your sponsoring employer.

Travel facility: The 186 comes with a 5-year travel facility from the grant date. This allows you to travel in and out of Australia freely. After 5 years, you'll need to apply for a Resident Return Visa (Subclass 155/157) if you want to continue travelling internationally while maintaining your PR.

Medicare: You're eligible for Australia's public healthcare system (Medicare) from the date your visa is granted.

Centrelink waiting period: You may face a waiting period (currently 4 years) before accessing some government benefits.

Pathway to citizenship: After holding PR for at least 1 year (and living in Australia for 4 years total, including at least 1 year as a permanent resident), you can apply for Australian citizenship.

Family: Your partner and dependent children included in the application also receive permanent residence with the same rights.

Direct Entry vs. TRT: Which Stream Is Right?

Direct Entry suits workers who are overseas or in Australia on a non-482 visa and have a willing employer sponsor. It's more paperwork but doesn't require a prior temporary work visa.

TRT suits workers already on a 482 visa who have spent 2+ years with their employer. It's the smoother, faster, and more predictable path.

Frequently Asked Questions

Can I change employers after getting the 186?

Yes. The moment your 186 visa is granted, you are a permanent resident with no employer restrictions. You can resign from your sponsoring employer and work anywhere. There is no obligation to remain with the nominating employer after visa grant.

What if my employer withdraws the nomination?

If the employer withdraws the nomination before the visa is granted, your visa application will typically be refused. However, you may be able to find another employer willing to sponsor and nominate you — the Department may allow a new nomination to be substituted. Act quickly and seek advice from a registered migration agent.

How much does the whole 186 process cost?

Total costs (employer + worker combined) are approximately:

• Visa application: $4,640
• Nomination: $540
• SAF levy: $3,000–$5,000
• Skills assessment: $300–$1,500 (Direct Entry only)
• Health examinations: $300–$600
• Police clearances: $50–$200
• Migration agent (optional): $3,000–$8,000
• Total: approximately $9,000–$20,000

By law, the employer must pay the nomination, SAF levy, and any migration agent fees for their own legal representation. The worker pays their visa application fee, health checks, and personal legal costs.

Can I apply for the 186 from outside Australia?

Yes, for the Direct Entry stream. You can apply while overseas if your employer nominates you. The TRT stream typically requires you to be in Australia since you need to have been working on a 482 visa. However, some flexibility exists — consult the Department's website for current requirements.

Is there a points test for the 186?

No. The Subclass 186 does not use the points test. Your eligibility is based on your employer's nomination, your skills assessment (Direct Entry), work experience, English proficiency, and age — not a points score. This is a key advantage for workers who might not score highly on the points test used for the Subclass 189 or 190.