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Employer Nomination Scheme (Subclass 186)

The Subclass 186 is Australia's primary employer-sponsored permanent residence visa, granting full and unrestricted permanent residency from the day of approval. It offers two main streams: the Direct Entry stream for applicants who have not previously worked in Australia on a temporary skilled visa (or who prefer not to transition), and the Temporary Residence Transition (TRT) stream for those who have worked for their nominating employer on a Subclass 482 or former 457 visa for at least two years. The 186 provides the right to live, work, and study anywhere in Australia, access to Medicare, eligibility for citizenship, and the ability to sponsor eligible relatives.

Direct Entry vs Temporary Residence Transition

FeatureDirect Entry StreamTemporary Residence Transition
Prior visa required?No -- can apply from any visa or overseasMust hold 482 or former 457 visa
Time with employerNo minimum (employer nomination still needed)At least 2 years with nominating employer on 482/457
Skills assessmentRequired (positive assessment from relevant authority)Not required
Occupation listMust be on CSOL (456 occupations)Must be on CSOL (456 occupations)
Age limitUnder 45 at time of applicationUnder 45 (exemptions possible for long-term visa holders)
English requirementCompetent (IELTS 6.0 each band)Competent (IELTS 6.0 each band)
Work experience3 years full-time post-qualification in nominated occupation2 years with nominating employer on 482/457
Processing time6-10 months4-12 months
Best forOverseas applicants, those on student/other visas, direct hires482/457 holders ready to convert to PR

Employer Obligations

Employers who nominate workers under the Subclass 186 must meet strict sponsorship obligations set by the Department of Home Affairs. Failure to comply can result in sanctions, including barring from future sponsorships.

Genuine position requirement

The nominated position must be a genuine, full-time role that exists within the employer's business. It cannot be created solely for immigration purposes. The Department may conduct site visits to verify.

Market salary rate

The employer must pay at least the market salary rate for the position in the relevant location. This must be equivalent to what an Australian citizen or permanent resident would be paid for the same role.

Skilling Australians Fund (SAF) levy

Employers must pay the SAF levy: AUD $3,000 per nomination for small businesses (turnover <$10M) or AUD $5,000 for larger businesses. This is a one-off payment per nomination.

Terms and conditions of employment

The employer must provide terms and conditions of employment no less favourable than those provided to an equivalent Australian worker, including leave entitlements, superannuation, and workplace health and safety.

Record-keeping and cooperation

Employers must keep records of all sponsored workers for at least 5 years, cooperate with Department monitoring activities, and notify the Department of any changes in the worker's employment circumstances within 28 days.

Non-discriminatory recruitment

Employers must not have engaged in discriminatory recruitment practices. The nomination must not directly or indirectly displace an Australian worker.

Application Process

1

Employer lodges nomination

Your employer submits a nomination application (Form 1000e) to the Department of Home Affairs, nominating you for a specific position. The nomination must include evidence of the genuine position, market salary rate, and CSOL listing. Fee: AUD $540. Processing: 3-5 months.

2

Skills assessment (Direct Entry only)

If applying via Direct Entry, obtain a positive skills assessment from the relevant assessing authority (ACS, Engineers Australia, VETASSESS, TRA, ANMAC, etc.). This must confirm your qualifications and 3 years of post-qualification experience. Processing: 6-16 weeks.

3

English language test

Sit an approved English test (IELTS Academic/General, PTE Academic, TOEFL iBT, OET, or Cambridge C1 Advanced). The requirement is Competent English: IELTS 6.0 in each of the four bands (reading, writing, speaking, listening), or equivalent.

4

Prepare supporting documents

Gather all required documents: passport, birth certificate, skills assessment, English test results, employment references, qualification certificates, police clearance certificates from every country lived in for 12+ months since age 16, and health insurance evidence.

5

Lodge visa application

Submit the visa application online via ImmiAccount (Form 1415e). You can apply while the nomination is still being processed. Include all supporting documents and pay the visa application charge. Primary applicant fee: AUD $4,640.

6

Health examination and decision

Complete the medical examination at an approved Bupa Medical Visa Services (BVMS) clinic. Once health and character checks are cleared and the nomination is approved, the Department makes a decision. Total processing: 4-12 months from lodgement.

Fees & Costs (2026)

ItemAmount
Visa application (primary applicant)AUD $4,640
Nomination fee (employer)AUD $540
Skilling Australians Fund -- small businessAUD $3,000
Skilling Australians Fund -- otherAUD $5,000
Additional applicant (18+)AUD $2,320
Additional applicant (under 18)AUD $1,160
Skills assessment (Direct Entry, varies)AUD $300-$1,500
English language testAUD $300-$400
Health examinationAUD $350-$500
Police clearance certificatesAUD $50-$200 per country

The nomination fee (AUD $540) and SAF levy must be paid by the employer. The visa application fee can be paid by either the applicant or the employer. Second instalment charges of AUD $4,890 (18+) or AUD $1,220 (under 18) may apply if secondary applicants do not meet English requirements.

FAQ

What is the difference between the Direct Entry and Transition streams?
Direct Entry is for applicants who have never worked in Australia on a 482/457 visa, or who choose not to use the transition pathway. It requires a positive skills assessment, 3 years of post-qualification work experience, and can be applied for from overseas or while on any Australian visa. The Temporary Residence Transition (TRT) stream is for those who have worked for their nominating employer on a 482/457 visa for at least 2 years -- it does not require a skills assessment, making it simpler for eligible applicants.
Does the Subclass 186 give permanent residence immediately?
Yes. Unlike the 482 visa which is temporary, the Subclass 186 grants permanent residence from the date the visa is granted. You can immediately live and work anywhere in Australia without restrictions, access Medicare, enrol children in public education, and begin accumulating time toward citizenship eligibility (4 years total, including 1 year as a permanent resident).
Can my employer pay the visa fees?
The nomination fee (AUD $540) and Skilling Australians Fund levy (AUD $3,000-$5,000) must be paid by the employer -- it is illegal for the employer to recover these costs from the worker. The visa application fee (AUD $4,640) can be paid by either you or your employer, depending on your arrangement. Many employers cover all fees as part of the relocation package.
What are the employer's ongoing obligations after the 186 is granted?
Even after the visa is granted, the employer must continue to comply with sponsorship obligations for a period. They must pay the market salary rate, provide equivalent terms and conditions, keep records, and cooperate with Department monitoring. However, as a permanent resident, you are free to change employers at any time -- the 186 visa is not tied to a specific employer after grant.
Can I change employers after receiving the 186 visa?
Yes. Once the Subclass 186 visa is granted, you are a permanent resident and free to work for any employer, start your own business, or not work at all. There is no requirement to stay with the nominating employer after grant. This is a significant advantage over the 482 temporary visa, which ties you to your sponsoring employer.

Official Sources

Last updated: 2026-03-25