Australia Subclass 186 Visa (Employer Nomination Scheme) – Guide

The Subclass 186 visa offers a pathway to permanent residency in Australia for skilled professionals who are nominated by an approved employer. This guide provides an overview of the process, eligibility routes, and key requirements, helping applicants understand how to approach their application with clarity and confidence.

What Is the Subclass 186 Visa?

The Subclass 186 Visa (Employer Nomination Scheme) is a permanent residency visa for skilled workers who are nominated by an approved Australian employer. It is designed to address long-term workforce needs while providing skilled migrants and their families the opportunity to settle in Australia permanently.

Key Features of the Subclass 186 Visa

• Permanent residency – Grants indefinite stay in Australia with full work and study rights.
• Employer nomination – Applicants must be nominated by an eligible Australian employer to fill a skilled position.
• Multiple streams available – Includes the Direct Entry stream, Temporary Residence Transition stream, and Labour Agreement stream, each tailored to different applicant profiles.
• Family inclusion – Allows eligible family members to be included in the application, offering them the same permanent residency rights.
• Access to benefits – Provides access to Medicare (Australia’s public healthcare system) and serves as a pathway to Australian citizenship once residence requirements are met.
• Work flexibility – Once granted, holders are not tied to their sponsoring employer indefinitely, offering long-term career freedom.

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Streams under Subclass 186

Australia’s Subclass 186 visa offers three distinct pathways to permanent residence, each designed for different applicant scenarios:

• Direct Entry Stream

For skilled workers who may not already hold a temporary sponsor visa in Australia. Applicants typically need a positive skills assessment, relevant work experience (often 3+ years), and a nominating employer offering a genuine, full-time position.

• Temporary Residence Transition (TRT) Stream

This stream is for applicants who are already working for their nominating employer under a temporary skilled visa (such as the 482 or legacy 457 visa). It requires a period of sponsored employment (recently reduced to two years in many cases) and compliance with English and salary requirements, but generally does not require a new skills assessment.

• Labour Agreement Stream

Available when an employer has a valid labour agreement with the Australian Government. The terms and conditions (age limits, English, salary, occupation) are set within that agreement, offering flexibility for roles that may not be covered under standard occupation lists.

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Eligibility Requirements by Stream (Subclass 186)

Below are the major eligibility criteria across the three streams of the 186 visa, highlighting how the requirements differ depending on the path chosen:

Requirement	Direct Entry Stream	Temporary Residence Transition (TRT) Stream	Labour Agreement Stream
Age & Exceptions	Applicants are generally required to be under 45 at the time of application, though exemptions may apply for certain cases.	Same age rule: under 45, with possible exemptions in special circumstances.	Age cap applies according to the labour agreement’s provisions, which may set custom conditions.
Skills Assessment / Occupation List	A positive skills assessment is typically required, and the nominated occupation must be on the eligible skilled occupation list (e.g. MLTSSL).	In many cases, a skills assessment is not required if the applicant has worked under a qualifying temporary visa (457 / 482) in the same occupation.	The occupation must be included in the terms of the labour agreement, and skill assessment requirements will align with that agreement.
Work Experience	Usually at least three years of relevant work experience in the nominated occupation is required, unless exemptions apply.	Must have worked for the nominating employer full-time for 2 of the last 3 years in the nominated occupation while holding a temporary visa (such as 482/457).	Work experience requirements are as stipulated in the labour agreement; prior work with the sponsoring employer is often required or preferred.
English Language	Applicants must demonstrate a minimum English proficiency (Competent English or equivalent) unless exempted.	English requirement applies, though the standard may be slightly relaxed for applicants already working under a qualifying visa.	The labour agreement may specify English requirements (often matching or exceeding Competent English) as part of its terms.

Employer Obligations & Role for Subclass 186

• Approved sponsor status — The employer must hold valid approval to nominate workers under Australian immigration law and remain compliant with sponsorship obligations.
• Labour market testing (if applicable) — In some cases, the employer must demonstrate that genuine attempts were made to recruit Australian citizens or permanent residents before nominating a skilled worker.
• Nomination process & fees — Employers are required to submit a nomination for the position, pay the applicable nomination charge, and ensure the nomination aligns with the requirements of the chosen Subclass 186 stream.
• Salary and legitimate business operation — The employer must offer a salary that meets Australian market standards and operate an active, lawful, and financially sustainable business.

Application Process & Timeline (Subclass 186)

Step 1: Employer Nomination

The sponsoring employer submits a nomination for the skilled position under the chosen 186 visa stream. This includes proving the business is legitimate, offering a market-rate salary, and paying the nomination fee.

Step 2: Visa Application

After the nomination is lodged, the applicant submits their Subclass 186 visa application, providing evidence of skills, work experience, English proficiency, and other eligibility documents.

Step 3: Health and Character Checks

Applicants (and included family members) must complete medical examinations and provide police clearance certificates to demonstrate they meet Australia’s health and character requirements.

Step 4: Department Decision

The Department of Home Affairs assesses both the employer’s nomination and the applicant’s visa application before issuing a decision to grant or refuse the visa.

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Estimated Subclass 186 Visa Processing Times by Stream

Stream	Typical Processing Time
Direct Entry	5–12 months
Temporary Residence Transition (TRT)	4–10 months
Labour Agreement	7–15 months

Note: Timelines vary depending on case complexity, application completeness, and overall demand.

Subclass 186 Visa Fees

When applying under the Subclass 186 visa, several fees apply to both the applicant and the sponsoring employer. Below is a breakdown of the main costs:

Fee Type	Amount
Base visa application fee – main applicant	AUD $4,910
Visa application – additional applicant (18+)	AUD $2,455
Visa application – dependent under 18	AUD $1,230
Nomination / sponsorship fee	AUD $540
Skilling Australians Fund (SAF) levy	Small businesses (< AUD 10M turnover): AUD $3,000 Large businesses (≥ AUD 10M turnover): AUD $5,000
Second instalment (if English requirement not met)	Payable in specific cases where the applicant lacks functional English

Benefits & Rights for 186 Visa Holders

Holding a Subclass 186 visa provides a wide range of benefits and long-term rights for both the main applicant and their family members:

• Permanent residency rights — Grants the right to live in Australia indefinitely.
• Work, study, and mobility — Offers unrestricted access to employment and education opportunities anywhere in Australia.
• Access to Medicare — Enables enrollment in Australia’s public healthcare system.
• Family inclusion — Allows eligible family members (spouse, children, dependants) to be included in the visa application and enjoy the same permanent residency rights.
• Pathway to citizenship — Provides eligibility to apply for Australian citizenship once residency and other requirements are met.

Common Pitfalls & Exceptions for Subclass 186

• Age cut-offs and exemptions — Applicants over 45 are usually ineligible, unless they qualify under specific exemptions (e.g. academic roles, high-income earners, regional medical practitioners, or legacy visa holders).
• Occupation changes after nomination — If you change your nominated occupation or role significantly after nomination, your visa may be refused or invalidated if the new position does not meet the original criteria.
• Employer non-compliance — If the sponsoring employer fails their obligations (e.g. breaches labour, sponsorship or financial requirements), the nomination or visa may be subject to cancellation.
• Missing or incorrect documents — Incomplete evidence, missing certificates (skills, work history, English, etc.), or non-certified documents often lead to delays or refusal.
• Overlooked exemptions and transitional rules — Some exemptions (e.g. for legacy 457 workers, age exceptions, or special industry agreements) are overlooked; failing to assess whether you qualify for these can harm your application.

Why Apply with Y-Axis?

Trusted by thousands of people, Y-Axis is one of the leading visa and immigration consultancy in the UK. Our team of visa and immigration experts will provide end-to-end guidance to assure you of an easy and successful visa application.

We are dedicated to guiding you with the following:

• Advise you on how to do the step-by-step filling of documents.
• Advise you on the financial documents that are to be submitted.
• Assist you with Filling out the application forms
• Reviewing your documents before submission
• Get yourself evaluated instantly for FREE with the Y-Axis Australia immigration points calculator.
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