For many skilled professionals, building a career in Australia is not only about finding the right job but also about having a clear long-term pathway to stay in the country. Employer sponsorship can play an important role in this process when an Australian employer is willing to nominate a skilled worker for a permanent position.

The Subclass 186 Visa, also known as the Employer Nomination Scheme visa, is one of the main employer-sponsored options for skilled workers seeking permanent residency in Australia. It allows eligible skilled workers to apply for permanent residence through employer nomination, with the requirements depending on factors such as their employment history, occupation, skills and sponsoring employer.

In this blog, we look at how the Subclass 186 Visa provides a pathway to permanent residency, the streams available to skilled workers, the key requirements and what happens once the visa is granted.

What Is the Subclass 186 Visa?

The Subclass 186 Visa allows eligible skilled workers to live and work permanently in Australia after being nominated by an eligible Australian employer. Both the applicant and employer must meet the requirements that apply to the nominated position and selected stream.

The visa has three main streams:

Temporary Residence Transition (TRT) Stream – generally for eligible skilled workers who have already worked in Australia for their sponsoring employer.
Direct Entry Stream – for skilled workers who meet the requirements for direct employer-sponsored permanent residency.
Labour Agreement Stream – for applicants nominated under an approved labour agreement between an employer and the Australian Government.

Although all three streams provide access to the same permanent visa, the eligibility requirements and circumstances for applying can differ.

How Does the Subclass 186 Visa Provide a Path to Permanent Residency?

The Subclass 186 Visa provides a path to permanent residency through employer nomination and different streams designed for skilled workers in different circumstances. The appropriate stream depends on the applicant’s employment history, skills, occupation and the requirements of the sponsoring employer.

For a skilled worker who is already employed in Australia by their sponsoring employer, the Temporary Residence Transition stream may provide a pathway after the required period of eligible employment and other criteria have been met. A skilled worker who meets the requirements for direct employer sponsorship may instead be able to apply through the Direct Entry stream.

The Labour Agreement stream provides another option where an employer has an approved labour agreement and the applicant meets the conditions that apply under that agreement.

Once the relevant requirements are met and the Subclass 186 Visa is granted, the applicant receives permanent resident status in Australia. This means the visa provides permanent residence through the employer-sponsored application process rather than requiring a separate permanent visa application after the Subclass 186 grant.

What Are the Main Subclass 186 Pathways?

The Subclass 186 Visa has three different streams, allowing skilled workers to apply through a route that matches their employment situation and eligibility. While each stream provides access to permanent residence, the requirements and circumstances for applying can vary.

Temporary Residence Transition Stream

The Temporary Residence Transition (TRT) stream is generally relevant to skilled workers who are already working in Australia for their sponsoring employer. Applicants need to meet the applicable employment and visa requirements, while the employer must nominate them for a position that meets the requirements for the permanent visa.

Under the current requirements, applicants generally need to have worked in eligible sponsored employment for at least two years in the three years before applying, while holding a subclass 457 or 482 visa or an eligible bridging visa. The employment must meet the applicable requirements, including being full-time and undertaken in Australia.

This pathway can be particularly relevant to skilled workers who have already established an employment relationship with their sponsoring employer and are being offered ongoing employment. However, completing the required employment period does not automatically guarantee the Subclass 186 Visa. The applicant, employer, nomination and other applicable requirements must still be satisfied.

Direct Entry Stream

The Direct Entry stream is designed for skilled workers who meet the requirements for permanent employer sponsorship without relying on the TRT employment pathway.

This may be suitable for an applicant who has the relevant skills, qualifications and experience for the nominated occupation and an eligible Australian employer willing to nominate them for a permanent position.

Depending on the applicant’s circumstances, requirements may relate to:

Relevant skills and at least 3 years of relevant work experience, unless an exemption applies
English language ability
A positive skills assessment, unless an exemption applies
Age requirements or an applicable exemption
Health and character requirements
The nominated occupation and position
Employer nomination requirements

The current Direct Entry requirements also include nomination for an occupation on the Core Skills Occupation List, unless an applicable provision or exemption applies. The exact requirements can vary depending on the applicant’s circumstances, so the relevant criteria should be checked before choosing this stream.

Labour Agreement Stream

The Labour Agreement stream applies where an Australian employer has an approved labour agreement with the Australian Government.

Labour agreements can be used in specific circumstances where an employer has workforce needs that cannot be met through standard skilled migration arrangements. The conditions of the approved agreement can affect the requirements that apply to the nominated worker.

For this reason, applicants under this stream need to consider the specific terms of the employer’s labour agreement rather than assuming that the standard requirements of another Subclass 186 stream will apply.

What Are the Key Requirements for Subclass 186 Visa?

While the exact requirements depend on the stream, a Subclass 186 application involves meeting eligibility criteria as an applicant as well as satisfying the relevant nomination requirements.

Key areas may include:

Age: Applicants generally need to meet the applicable age requirement, although exemptions may be available in certain circumstances.
Skills and experience: The applicant must have the skills and experience required for the nominated occupation and relevant stream.
English language: The required level of English must be met unless an applicable exemption applies.
Occupation and position: The nominated occupation and position must meet the requirements of the relevant stream.
Employer nomination: The employer must be eligible to nominate the applicant for the proposed permanent position.
Health and character: The applicant and relevant family members may need to meet Australia’s health and character requirements.
Skills assessment: A positive skills assessment may be required, particularly for Direct Entry applicants, unless an exemption applies.

Since these requirements are not identical across all three streams, the applicant’s circumstances should be considered before deciding which pathway to pursue.

What Happens After the Subclass 186 Visa Is Granted?

Once the Subclass 186 Visa is granted, the applicant becomes an Australian permanent resident. The visa allows the successful applicant to remain in Australia permanently, subject to the applicable visa conditions.

As a permanent resident, the visa holder may generally be able to:

Live, work and study in Australia indefinitely
Access Medicare if eligible
Sponsor eligible family members
Apply for Australian citizenship when the separate citizenship requirements are met

The visa generally also provides a five-year travel facility. The expiry of this travel facility does not mean that permanent residency itself automatically ends. However, a permanent resident may need a valid travel facility, such as a Resident Return Visa, to return to Australia as a permanent resident after the initial travel facility expires.

Final Thoughts

The Subclass 186 Visa can be an important option for skilled workers seeking permanent residence in Australia through employer sponsorship. However, the requirements can differ depending on the stream, and factors such as employment history, nominated occupation, skills, qualifications, English language ability, employer nomination and supporting documents may all be relevant when establishing eligibility.

Having the right guidance can make the Subclass 186 Visa application process easier to understand and manage. At Ozee Migration, we provide professional guidance to skilled workers applying for the Subclass 186 Visa. As registered migration agents, we can assist with eligibility assessment, stream selection, document review, application preparation, lodgement and responding to Department requests where required.

If you are considering a Subclass 186 Visa application, contact Ozee Migration to discuss your eligibility and the stream that may suit your circumstances.

Recommend Read: How to Apply for a Subclass 491 Visa in Australia: Step-by-Step Guide

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