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.

*Want to work in Australia? Let Y-Axis assist you with the process. 

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.

*Looking to migrate to Australia? Get in touch with experts at Y-Axis for end-to-end support. 

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.
  • End-to-end support with the Australia PR process. 

 

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Frequently Asked Questions

What is the Subclass 186 (Employer Nomination Scheme) Visa?

The Subclass 186 Employer Nomination Scheme (ENS) visa is a permanent residence visa for skilled workers nominated by an approved Australian employer. It allows the applicant and eligible dependants to live, work, and study in Australia indefinitely. Unlike skilled migration visas, it does not require a points test. The process involves two steps: the employer lodges a nomination, and the applicant then applies for the visa. Once granted, the visa provides access to permanent residency benefits such as Medicare and, eventually, eligibility for Australian citizenship.

What are the three streams under Subclass 186 and how do they differ?

The Subclass 186 visa has three streams, each designed for different situations:

  • Direct Entry (DE) Stream – For applicants outside Australia or those who have not worked long enough for their nominating employer. A skills assessment and occupation on the skilled list are required.
  • Temporary Residence Transition (TRT) Stream – For holders of certain temporary visas (such as subclass 482 or the legacy 457) who have worked for their employer for two to three years. A new skills assessment is usually not required.
  • Labour Agreement (LA) Stream – For workers sponsored under a labour agreement between the employer and the Australian government. Requirements can be more flexible, depending on the terms of the agreement.

 

What eligibility criteria do I need to meet under each stream (age, experience, English)?

 

Eligibility criteria vary depending on which stream of the Subclass 186 visa you apply under. Below is a comparison of the main requirements:

Criteria

Direct Entry (DE) Stream

Temporary Residence Transition (TRT) Stream

Labour Agreement (LA) Stream

Age

Usually under 45 years (some exemptions apply)

Usually under 45 years (some exemptions apply)

May be flexible depending on labour agreement terms

Skills Assessment

Positive skills assessment in nominated occupation required

Not usually required (waived if already working for employer on a qualifying visa)

May be required or waived, depending on the agreement

Work Experience

Typically at least 3 years of relevant work experience

Must have worked 2–3 years for nominating employer on a 482, 457, or qualifying visa

Requirements vary and can be tailored to the labour agreement

English Language

Competent English (e.g., IELTS 6 in each band or equivalent test scores)

Competent English required

Level may be lowered or adjusted depending on the agreement

Other Requirements

Meet health and character standards; must be nominated by an eligible employer

Meet health and character standards; must be nominated by an eligible employer

Same as DE and TRT, but criteria modified by terms of the labour agreement

Note: Exemptions may apply in certain circumstances (for example, for academics, high-income earners, or positions covered by a labour agreement). Applicants should always check the latest requirements before applying.

What obligations does the employer need to fulfil to nominate an applicant?

Employers nominating applicants under Subclass 186 must meet strict obligations. They must:

  • Be actively and lawfully operating in Australia.
  • Offer a genuine, full-time role aligned with the nominated occupation.
  • Pay the nominee the market salary rate, ensuring conditions are no less favourable than those offered to Australians in similar roles.
  • Demonstrate the need for the nominated position and ensure it is available for at least two years.
  • Lodge a nomination application and pay the relevant fees and levies, including the Skilling Australians Fund (SAF) levy.
  • Not pass on certain nomination costs or levies to the visa applicant.
How much does the Subclass 186 visa cost (application, nomination, dependents)?

The costs for the Subclass 186 visa include both applicant charges and employer fees:

Category

Fee (AUD)

Visa Application Charges

 Main applicant

4,770

Additional applicant (18 years or over)

2,385

Additional applicant (under 18 years)

1,190

Second instalment (if required)

Up to 9,800

Employer Nomination Fee

540

Skilling Australians Fund (SAF) Levy

 Business turnover < AUD 10 million

3,000

 Business turnover ≥ AUD 10 million

5,000

 

Note: These fees are set by the Department of Home Affairs and may change, so applicants and employers should always confirm the current costs at the time of application.

How much does the Subclass 186 visa cost (application, nomination, dependents)?

The costs for the Subclass 186 visa include both applicant charges and employer fees:

Category

Fee (AUD)

Visa Application Charges

 Main applicant

4,770

Additional applicant (18 years or over)

2,385

Additional applicant (under 18 years)

1,190

Second instalment (if required)

Up to 9,800

Employer Nomination Fee

540

Skilling Australians Fund (SAF) Levy

 Business turnover < AUD 10 million

3,000

 Business turnover ≥ AUD 10 million

5,000

 

Note: These fees are set by the Department of Home Affairs and may change, so applicants and employers should always confirm the current costs at the time of application.

Which streams are available under the Subclass 186 visa and how do they differ?

The Subclass 186 visa has three main streams:

  • Direct Entry Stream – For skilled workers who meet skills, English, and work experience requirements whether or not they’ve held a temporary visa. Applicants usually need to have a positive skills assessment, relevant experience, and be nominated by an employer for a full-time position.
  • Temporary Residence Transition (TRT) Stream – For those already working in Australia under a qualifying temporary visa (e.g. subclass 482) with their current employer. This stream allows a transition to permanent status if you have worked full time for the employer for a required period.
  • Labour Agreement Stream – For workers nominated under an employer labour agreement negotiated with the Australian government. This is used when the occupation is not covered under standard lists or when special arrangements are needed.

Note: Each stream has distinct eligibility rules (skills assessments, work history, employer obligations) tailored to different applicant circumstances.

Which stream (Direct Entry, Temporary Residence Transition, or Labour Agreement) is right for me?

To choose the proper stream:

  • If you are overseas (or in Australia) with the required skills, experience, and qualifications, and have an employer willing to nominate you, the Direct Entry stream is appropriate.
  • If you are already working in Australia under a temporary work visa (e.g. 482) and have been with your employer for the required time, then TRT may be your pathway.
  • If your employer has a Labour Agreement in place (or the occupation is outside standard lists), then Labour Agreement stream may apply.
  • Your individual situation—your visa history, work history, employer status, and occupation—determines which stream you qualify for. It’s important to match your background with the correct stream criteria.
What are the eligibility criteria for the Subclass 186 visa?

Key eligibility criteria that all applicants and their sponsoring employer must satisfy include:

  • The applicant must be nominated by an approved Australian employer.
  • The nominated position must be a full-time job consistent with your occupation.
  • You must have the required skills, qualifications, and relevant work experience in your nominated occupation.
  • Meet health and character requirements (medical checks and police certificates).
  • Meet English language requirements (often “competent English” or higher).
  • Be under the age limit (generally under 45) unless exemptions apply (for certain positions or agreements).
  • For the TRT stream: you must have already worked for the nominating employer in Australia under a qualifying temporary visa for a minimum period.
  • For Direct Entry: a skills assessment is required (unless exempt).
  • For Labour Agreement: satisfy terms of that specific agreement.

Note: If all conditions are met, the visa grants permanent residency, allowing you to live and work in Australia indefinitely.

How do I apply for the Subclass 186 visa step-by-step?

Step 1: Employer nomination – Your Australian employer submits a nomination for the role, demonstrating the business need and meeting sponsorship obligations.

Step 2: Nomination approval – Once the nomination is approved, you become eligible to proceed with your visa application.

Step 3: Gather documentation – Collect all necessary documents, including proof of identity, skills, qualifications, employment records, English test results, health, and character checks.

Step 4: Lodge your visa application – Submit your application online through ImmiAccount, ensuring you select the correct stream (Direct Entry, Temporary Residence Transition, or Labour Agreement).

Step 5: Complete health and character assessments – Attend medical examinations and obtain police clearances from countries where you have lived.

Step 6: Await the decision – The Department of Home Affairs reviews your application, may request more information, and finalizes the decision.

Step 7: Visa grant and conditions – If granted, you become a permanent resident and must follow visa conditions, such as starting work with the sponsoring employer within the required timeframe.

What documentation is required for a Subclass 186 visa application?

Typical documents needed include:

  • A valid passport and identity documents
  • Certified copies of qualifications and transcripts relevant to your nominated occupation.
  • A positive skills assessment for your occupation (unless exempt).
  • Evidence of relevant work experience, such as employment references, pay records, contracts.
  • English language test results (IELTS, PTE, etc.) at the required level.
  • Health examination reports and police certificates for all jurisdictions you’ve lived in.
  • The nomination approval reference from your employer.
  • Employer documentation showing ability to sponsor (business registration, financials, etc.).
  • Proof of licensing or registration if required by the occupation in the Australian state.
  • Additional documents per stream (for TRT, proof of previous visa and employment with same employer; for Labour Agreement, evidence satisfying agreement terms).

Note: Document quality, correctness, translations, and certification are critical. Applications missing or unclear documents are often delayed or refused.