186 Visa Australia: Employer Nomination Scheme Permanent Residence

Executive Summary

A subclass 186 strategy should therefore be tested through five connected questions:

1. Which stream applies?
2. Can the employer lodge a credible permanent nomination?
3. Does the real position support the nominated occupation?
4. Does the applicant satisfy the visa requirements?
5. Can both sides prove the case through reliable evidence?

What Is the Subclass 186 Employer Nomination Scheme Visa?

The subclass 186 visa is an employer-sponsored permanent residence visa.

A successful primary applicant can generally:

• live and work in Australia permanently;
• include eligible members of the family unit;
• access Medicare;
• travel to and from Australia during the visa’s travel facility;
• sponsor eligible relatives in the future; and
• apply for Australian citizenship after satisfying the applicable residence and other requirements.

The grant provides permanent residence, but the nomination is based on an employer offering a genuine permanent position.

The Department can examine:

• the business;
• the legal employing entity;
• the position;
• the occupation;
• the salary;
• the organisational structure;
• the employer’s compliance history;
• the worker’s qualifications and experience; and
• the consistency of the evidence across the nomination and visa application.

The Three Subclass 186 Streams

The streams are not interchangeable

A worker may be unsuitable for one stream but potentially eligible under another.

For example:

• a worker may lack the qualifying temporary sponsored employment for TRT but satisfy Direct Entry requirements;
• a Direct Entry applicant may have relevant experience but no suitable skills assessment;
• a worker may require a labour-agreement concession unavailable under the standard streams; or
• an applicant may satisfy worker-side criteria while the employer cannot support the relevant nomination.

Stream selection should occur before the employer and applicant begin gathering documents.

How to Assess a Subclass 186 Case

1. Stream

Determine whether the application should proceed through Temporary Residence Transition, Direct Entry or Labour Agreement.

2. Employer

Assess the identity, eligibility, operational history, compliance and capacity of the nominating business.

3. Position

Establish the real permanent role, occupation, duties, salary, reporting structure and continuing business need.

4. Applicant

Confirm the worker’s age, English, skills assessment, experience, registration, health, character and stream-specific requirements.

5. Evidence

Test whether the nomination and visa records form one consistent account of the business, position and worker.

The Employer Nomination

The employer nomination is not a formality attached to the worker’s visa application.

It is a separate application in which the employer may need to establish:

• the legal identity of the nominating business;
• that the business is actively and lawfully operating;
• that the nominated position genuinely exists;
• that the position is available on a permanent basis;
• that the duties support the nominated occupation;
• that the salary and conditions satisfy the applicable requirements;
• that the business can support the employment;
• that the position fits the organisational structure;
• that required charges and obligations have been addressed; and
• that no adverse information prevents approval.

A previous temporary nomination does not prove the permanent nomination

An employer may previously have secured a subclass 482 nomination for the worker.

By the time the subclass 186 nomination is prepared:

• the business may have changed owners;
• the worker may have been promoted;
• the employing entity may have changed;
• the position may have moved to another location;
• the salary may have changed substantially;
• the organisational structure may be different;
• the original project may have ended; or
• the business may no longer require the same role.

The permanent nomination must be supported by the circumstances existing when it is lodged.

The nominating entity must be identified precisely

A trading name does not necessarily identify the legal employer.

The following records should be consistent:

• employment contract;
• payslips;
• PAYG income statements;
• superannuation records;
• Australian Business Number;
• temporary sponsorship and nomination records;
• organisational chart; and
• the proposed permanent employment agreement.

The Genuine Permanent Position

The employer must offer a genuine skilled position expected to remain available for the required period.

The Department may examine:

• why the role exists;
• how it supports the business;
• whether the duties are performed in practice;
• whether the workload justifies the role;
• where the position sits in the organisation;
• whether another employee already performs the same function;
• the relationship between the salary and responsibility level;
• whether the business can sustain the employment; and
• whether the position was constructed primarily to secure a migration outcome.

Permanent does not simply mean the contract uses the word permanent

A contract may call a position permanent while other evidence suggests:

• the work is project-based;
• funding is temporary;
• the business is winding down;
• the position depends on one short-term client;
• the role is not reflected in the organisational structure; or
• the worker’s actual duties belong to another position.

The nomination should explain the commercial reality of the role rather than rely on labels.

Occupation Strategy for the Subclass 186 Visa

Occupation selection should begin with the position that genuinely exists.

The analysis can include:

• the worker’s actual duties;
• the proportion of time spent on each function;
• the level of responsibility;
• the qualifications normally required;
• the worker’s experience;
• the reporting structure;
• the salary;
• the industry and business context;
• registration or licensing; and
• the occupation settings applying to the intended stream.

Direct Entry occupation access

Direct Entry requires the nominated occupation to be available under the applicable occupation framework and generally requires a suitable skills assessment for that occupation.

Temporary Residence Transition occupation analysis

The TRT stream does not operate through exactly the same occupation-list mechanism as Direct Entry.

That does not make occupation irrelevant.

The Department can still examine:

• the occupation under which the worker was sponsored;
• the duties performed during the temporary period;
• the current permanent position;
• promotions or transfers;
• changes in responsibility; and
• whether the employer and worker records remain consistent.

An occupation title does not settle the question

Titles such as Manager, Consultant, Engineer, Analyst and Coordinator can describe very different work in different businesses.

The nomination must show what the employee actually does and why that work fits the proposed occupation.

Temporary Residence Transition Stream

The Temporary Residence Transition stream is commonly used by eligible temporary sponsored workers moving to permanent residence through their current employer.

The pathway generally requires a total of at least two years of eligible full-time sponsored employment during the three years immediately before the visa application, together with a valid employer nomination and satisfaction of the remaining visa requirements.

The calculation should not be reduced to the anniversary of the subclass 482 grant.

Issues that can affect the employment period

• the date eligible sponsored employment commenced;
• the visa held during the claimed period;
• whether the work was full-time;
• unpaid leave or extended absences;
• changes in sponsor;
• changes in the legal employer;
• movement between associated entities;
• changes in occupation or duties;
• periods when the worker was not performing the sponsored role; and
• the identity of the employer lodging the permanent nomination.

Employer changes require early review

A worker may believe that earlier employment will count because:

• both businesses have the same owner;
• the trading name remained unchanged;
• the workplace and manager stayed the same;
• the change occurred only for payroll purposes; or
• the new employer promised to continue the permanent residence strategy.

The legal employer, sponsorship history and employment records still need to be assessed.

For detailed transition planning, see:

482 to 186 Visa Australia: Permanent Residence Strategy

Direct Entry Stream

The Direct Entry stream may provide permanent residence without requiring the worker to first complete the TRT sponsored-employment period.

It ordinarily involves:

• an occupation available for Direct Entry;
• a suitable skills assessment obtained before the visa application;
• at least three years of relevant skilled employment;
• the required English level;
• the applicant generally being under 45 unless an exemption applies;
• a genuine permanent employer nomination;
• health and character; and
• registration or licensing where relevant.

The skills assessment must suit the subclass 186 application

• it was obtained for a Temporary Graduate subclass 485 visa and is not suitable for the subclass 186 application;

A skills assessment may create problems where:

• it was issued for another visa purpose;
• it had expired by the application date;
• it relates to another occupation;
• the assessing authority did not recognise enough employment;
• the applicant relies on work performed before becoming suitably qualified;
• the assessment outcome does not match the position being nominated; or
• the result was obtained after the legally relevant date.

Three years of employment must be relevant and skilled

Time employed is not necessarily the same as relevant skilled employment.

The evidence may need to establish:

• the precise employment dates;
• full-time or equivalent hours;
• the occupation performed;
• the level at which the work was performed;
• duties;
• salary;
• the employing entity;
• how the employment can be independently verified; and
• whether the work occurred at the required skill level.

Direct Entry is not simply for people outside Australia

The strategic distinction is whether the applicant meets the Direct Entry requirements—not merely whether they are offshore, newly arrived or have limited Australian employment.

An applicant in Australia may qualify for Direct Entry, while an offshore applicant may fail because the occupation, assessment, experience or nomination requirements are not met.

Labour Agreement Stream

The Labour Agreement stream applies where an employer nominates a worker under an approved agreement that provides access to subclass 186 permanent residence.

This can include arrangements such as:

• Designated Area Migration Agreements;
• industry labour agreements;
• company-specific labour agreements; and
• other approved agreement structures.

The requirements depend on the agreement itself.

The assessment may involve:

• the employer’s agreement access;
• the occupation;
• the temporary visa history;
• the transition period;
• regional employment;
• age concessions;
• English concessions;
• salary concessions;
• skills and experience requirements;
• the nominated position; and
• the permanent pathway written into the agreement.

A temporary labour-agreement visa does not establish permanent eligibility

The permanent stage may apply:

• a different age limit;
• a higher English level;
• a further employment period;
• continued work in a designated region;
• different salary settings;
• a restricted occupation pathway; or
• additional employer requirements.

The exact agreement should be checked before the worker assumes that temporary sponsorship will lead to subclass 186 permanent residence.

Salary and Employment Conditions

The employer must address the current salary requirements applying to the subclass 186 nomination.

This commonly involves more than showing that the salary exceeds a published threshold.

The nomination may need to establish:

• the Annual Market Salary Rate for the real position;
• the proposed guaranteed annual earnings;
• the current income threshold applying to the nomination;
• ordinary hours;
• allowances;
• non-monetary benefits;
• award or enterprise agreement coverage;
• comparators within the business;
• external market salary evidence; and
• compliance with Australian workplace law.

The contract, nomination and payroll should agree

Problems can arise where:

• the nomination states one salary and the contract another;
• allowances are treated as guaranteed earnings without proper analysis;
• the worker’s historical pay does not match the sponsored arrangement;
• the role has been promoted but the duties remain unchanged on paper;
• the employer uses an interstate or unrelated salary comparison; or
• the salary appears to have been increased solely to satisfy a migration requirement.

Age and English Requirements

Age

Applicants generally need to be under 45 at the relevant time unless a specific exemption applies.

A worker approaching 45 should allow time to resolve:

• stream selection;
• the employer’s decision to proceed;
• the nomination evidence;
• skills assessment issues;
• employment calculations;
• English testing;
• corporate restructures;
• occupation questions;
• police clearances; and
• any exemption relied upon.

The employer’s need to retain the worker does not itself create an age exemption.

Applicants who are 45 or older should have the available stream-specific and occupation-specific exemptions assessed before concluding that the subclass 186 pathway is unavailable.

English

The applicant must satisfy the English requirement applying to the chosen stream unless an exemption is available.

English should be checked early where:

• the applicant relied on a lower standard for the temporary visa;
• an earlier result has expired or may not be usable;
• the applicant has repeatedly missed a required component score;
• professional registration applies;
• the applicant is approaching an age deadline; or
• a labour agreement applies a specific setting.

Skills Assessments and Employment Experience

Direct Entry

A suitable skills assessment is generally required for Direct Entry.

The result must be obtained before the visa application is made, even where the document itself is supplied later.

The assessment must also remain valid at the relevant time.

Temporary Residence Transition

A skills assessment is not ordinarily required at the time of a standard TRT application, although the Department can request one where it considers further assessment necessary.

Labour Agreement

A standard skills assessment is not ordinarily required at application solely because the case is in the Labour Agreement stream, but the agreement may impose its own skills, qualification, registration or assessment requirements.

Employment references need supporting evidence

A reference letter is stronger when it is consistent with:

• contracts;
• payslips;
• bank statements;
• tax records;
• superannuation;
• organisational charts;
• contemporaneous duty evidence;
• professional registration;
• business records; and
• the applicant’s previous visa history.

References prepared years later can create problems where the writer does not remember the dates, title, hours or duties accurately.

Health and Character Requirements

The applicant and included family members must satisfy the health and character requirements applying to the permanent visa.

Health

Further assessment may be required where:

• a medical condition has arisen since the temporary visa;
• specialist reports are needed;
• treatment or medication is ongoing;
• a family member has additional support needs;
• further testing is requested; or
• the Department’s medical officer requires more information.

Character

Character evidence may involve:

• police clearances from multiple countries;
• criminal charges or convictions;
• driving offences;
• family violence orders;
• military service;
• identity variations;
• previous migration declarations; and
• documents that require explanation or verification.

Previous satisfaction of health or character requirements does not prevent those matters being assessed again for permanent residence.

Evidence for the Nomination and Visa Application

Employer evidence

• company and business registration records;
• Australian Business Number details;
• financial statements;
• business activity statements;
• payroll records;
• organisational charts;
• workforce information;
• contracts and client evidence;
• position description;
• permanent employment contract;
• salary comparisons;
• evidence of the commercial need for the role;
• sponsorship and nomination history; and
• explanations of any restructure, sale or entity change.

Applicant evidence

• passport and identity records;
• qualifications and transcripts;
• skills assessment where required;
• professional registration or licensing;
• employment references;
• payslips and bank records;
• tax and superannuation records;
• English evidence;
• visa history;
• health evidence;
• police clearances;
• relationship and family records; and
• explanations of discrepancies or unusual employment arrangements.

Consistency is more important than document volume

A large application is not necessarily a strong application.

The central records should agree about:

• the employer;
• the position;
• the occupation;
• employment dates;
• hours;
• salary;
• duties;
• work location; and
• changes in the worker’s role.

Common Subclass 186 Problems

The employer and payroll entity are different

The worker believes they remained with the same business, but the legal employer changed after a restructure, sale or internal transfer.

The role evolved during temporary sponsorship

A worker sponsored in a technical occupation now performs mainly management, administration or supervision.

The employer reuses an old position description

The temporary nomination duties are copied into the permanent nomination even though the real role has changed.

The business cannot explain why the permanent position exists

The contract says the role is permanent, but the workload, funding or organisational evidence does not support that claim.

The Direct Entry skills assessment is unsuitable

The assessment is expired, issued for another occupation, obtained for another visa purpose or does not recognise the required experience.

The employment evidence is inconsistent

References, tax records, contracts and application forms provide different dates, titles, hours or duties.

The worker reaches the age deadline before the case is ready

The parties begin preparing only after the employment period or skills assessment is complete, leaving insufficient time to resolve nomination issues.

The salary meets a threshold but not the market analysis

The employer identifies the minimum threshold but does not establish the Annual Market Salary Rate for the actual position.

The parties rely on a labour-agreement concession that does not apply

The concession is available under another agreement, another occupation or only at the temporary stage.

Simon’s Perspective

Subclass 186 cases often become difficult because ordinary business life does not stand still.

Companies restructure. Payroll moves. Managers leave. Workers are promoted. Duties evolve. Trading entities change. The position approved several years earlier may not be the position the worker performs today.

Those changes are not inherently suspicious.

The difficulty arises when the nomination and visa application pretend that nothing changed.

I commonly see employers start with the old subclass 482 documents and update only:

• the dates;
• the salary;
• the visa subclass; and
• the word temporary to permanent.

That approach can miss the real questions:

• Does the original employing company still employ the worker?
• Does the original occupation still describe the role?
• Has the worker moved from technical work into management?
• Does the new salary reflect a different position?
• Can the employer show that the permanent position will continue?
• Do payroll and tax records support the claimed employment period?
• Has the worker left enough time before an age deadline?

Direct Entry cases present a different version of the same problem.

The applicant may have a positive skills assessment and substantial experience, but the Australian position does not match the assessed occupation. Or the employer may have a credible role, but the skills assessment is expired, unsuitable or based on employment that does not support the visa requirement.

The strongest subclass 186 cases make the connection between the employer, the position and the applicant easy to understand.

They do not rely on the case officer to infer why:

• the position exists;
• the occupation fits;
• the salary is appropriate;
• the employment history counts;
• the skills assessment is suitable; or
• the employer can sustain the permanent role.

The objective is not to create a larger application. It is to remove the gaps between what the employer says, what the worker says and what the records prove.

Related Employer Sponsorship Guides

• 
  482 to 186 Visa Australia: Permanent Residence Strategy
  
• 
  482 Visa Australia: Skills in Demand Requirements and Strategy
  
• 
  Employer-Sponsored Visas Australia
  
• 
  Employer Sponsorship Strategy Australia
  
• 
  Employer Sponsorship Occupation Strategy
  
• 
  DAMA Visa Australia
  
• 
  DAMA Concessions Australia
  

Official Subclass 186 Resources

• 
  Department of Home Affairs — Employer Nomination Scheme subclass 186
  
• 
  Department of Home Affairs — Temporary Residence Transition stream
  
• 
  Department of Home Affairs — Direct Entry stream
  
• 
  Department of Home Affairs — Labour Agreement stream
  
• 
  Department of Home Affairs — Skills assessment requirements
  
• 
  Department of Home Affairs — Salary requirements to nominate a worker
  

186 Visa Australia FAQs

Is the subclass 186 visa permanent residence?

Yes. The subclass 186 Employer Nomination Scheme is a permanent residence visa for eligible workers nominated by an Australian employer.

What are the three subclass 186 streams?

The three streams are Temporary Residence Transition, Direct Entry and Labour Agreement. Each stream has different eligibility and evidence requirements.

What is the Temporary Residence Transition stream?

The TRT stream is commonly used by eligible temporary sponsored workers transitioning to permanent residence through their current employer after completing the required eligible sponsored employment.

How long must a 482 holder work before applying through TRT?

The pathway generally requires a total of at least two years of eligible full-time sponsored employment during the three years immediately before the visa application, together with a valid employer nomination and satisfaction of the remaining visa requirements.

Does the Direct Entry stream require a skills assessment?

Yes, a suitable skills assessment is generally required. The assessment outcome must have been obtained before the visa application and must remain valid at the relevant time.

How much experience is required for Direct Entry?

Direct Entry applicants generally need at least three years of relevant full-time employment at the required skill level for the nominated occupation.

Does TRT require a skills assessment?

A skills assessment is not ordinarily required at the time of a standard TRT application. A decision-maker can still request one where further assessment is considered necessary.

Do I need to be under 45?

Applicants generally need to be under 45 at the relevant time unless a specific exemption applies. The exact exemption must be identified and supported.

Can my employer guarantee my subclass 186 visa?

No. The employer can choose to lodge a nomination, but both the nomination and the worker’s visa application must independently satisfy the applicable requirements.

Does my employer have to sponsor me permanently after a 482 visa?

No. Temporary sponsorship does not legally compel an employer to lodge a later subclass 186 nomination.

Can I apply through Direct Entry without first holding a 482 visa?

Potentially, yes. Direct Entry does not require the applicant to first complete a subclass 482 employment period, but the occupation, skills assessment, experience, nomination and other visa requirements must be met.

Can changing employers affect a TRT application?

Yes. Employer changes can affect the eligible employment calculation, future nominator, timing and evidence. The consequences should be assessed before changing sponsor.

Can a promotion affect my subclass 186 pathway?

Yes. A promotion may change the worker’s duties, responsibility level or occupation. The permanent nomination must describe the real current position.

Does the subclass 186 salary only need to exceed the income threshold?

No. The employer generally also needs to establish the appropriate Annual Market Salary Rate and comply with Australian workplace and employment-condition requirements.

Can a DAMA or labour-agreement worker obtain a subclass 186 visa?

Potentially. The pathway depends on the terms of the relevant agreement, the occupation, employer access, employment period and any age, English, salary or regional requirements.

What happens if the employer’s legal entity changes?

A business sale, restructure or payroll transfer may affect the employer nomination and employment evidence even where the workplace and trading name remain unchanged.

Can family members be included?

Eligible members of the family unit may be included, subject to the applicable identity, relationship, health and character requirements.

What evidence is needed for a subclass 186 application?

The evidence depends on the stream but commonly includes employer business and nomination records, the permanent employment contract, salary evidence, occupation and duty material, identity documents, skills and experience evidence, English, health and character documents.