The Subclass 186 visa, formally known as the Employer Nomination Scheme (ENS), is one of Australia’s most direct routes to permanent residency without a points test. The pathway is employer-driven: an Australian employer nominates you for a skilled position, and your PR application follows. Before you pursue this route, understanding how employer sponsorship leads to PR in Australia is essential. Most applicants focus entirely on their own eligibility and overlook the employer side, which is where a large share of refusals happen. These are the six things that will change how you approach this visa.
Last updated: April 2026
1. The Subclass 186 Visa Grants Permanent Residency
The Subclass 186 is not a temporary work visa. Once granted, you can live and work in Australia indefinitely, access Medicare, sponsor eligible family members, and eventually apply for Australian citizenship after meeting the residency requirement.
That is a significant difference from the Subclass 482 (Skills in Demand) visa, which has an expiry date and ties your right to stay to a specific employer. The Subclass 186 removes both of those limitations permanently. For a fuller picture of what to expect before and after the grant, the guide on employer sponsored PR: benefits and challenges is worth reading first. Because this visa leads directly to PR, the Department of Home Affairs (DHA) applies rigorous scrutiny to both sides of the application: your documents and your employer’s.
2. You Need an Employer to Sponsor and Nominate You
You cannot apply for the Subclass 186 visa on your own. An Australian employer must sponsor and nominate you for a specific skilled position before you can lodge your own visa application. This requires three things from the employer:
- Hold or obtain an approved Standard Business Sponsorship (SBS) from DHA
- Nominate your specific position and demonstrate the role is genuine and ongoing
- Offer a salary at or above the Temporary Skilled Migration Income Threshold (TSMIT), currently AUD 75,515 per year plus superannuation
The nomination must be approved before your visa application can be lodged. Without it, there is nothing to apply for. If you are still looking for the right sponsor, read our guide on how to find an employer who can sponsor you in Australia.
Thinking about the Subclass 186 visa? Book a paid consultation with RACC Indonesia to assess your eligibility and your employer’s readiness before you invest in an application.
3. There Are Two Main Application Streams
Which stream you qualify for depends on your current visa status and your work history in Australia. Most applicants fall into one of two categories, and the requirements are very different between them.
Temporary Residence Transition (TRT) Stream
The TRT stream is for skilled workers currently holding a Skills in Demand (Subclass 482) visa or a Subclass 457 visa who have worked for their nominating employer for at least two years in their sponsored occupation. If you are already in Australia with the same employer and your role matches the nominated position, this is your likely pathway. A separate skills assessment is not required under TRT, as your qualifications were already evaluated during your prior visa application.
Direct Entry (DE) Stream
The Direct Entry (DE) stream applies to skilled workers who have not previously worked in Australia on a Subclass 482 or 457 visa, or who have worked for a different employer. The DE stream carries stricter requirements: a positive skills assessment from the relevant authority and at least three years of full-time relevant work experience, per the Employer Nomination Scheme (Subclass 186) visa requirements on immi.homeaffairs.gov.au. For a deeper breakdown of TRT vs Direct Entry: which stream is right for you, RACC’s dedicated comparison guide covers each pathway in full.
4. Skills and Work Experience Requirements Apply
For Direct Entry applicants, a formal skills assessment is mandatory before you can apply. Which authority assesses you depends on your occupation: VETASSESS covers a wide range of professional and technical roles, AHPRA assesses healthcare professionals including nurses and pharmacists, and Engineers Australia assesses engineering occupations. Your nominated occupation must also align with the relevant ANZSCO code specified in your employer’s nomination.
The minimum experience requirement for DE applicants is three years of full-time relevant work. Part-time hours and voluntary work do not count. TRT stream applicants are exempt from the separate skills assessment, but their employment history on the prior visa must clearly match the nominated occupation or DHA will question the nomination.
5. English Proficiency is a Hard Requirement
Most Subclass 186 applicants must demonstrate at least competent English before their application is approved. The standard benchmark is 6.0 in each band of the IELTS, or an equivalent result in an accepted test: 50 in each communicative skill for PTE Academic, or Grade B in each component for OET, per DHA’s published requirements for the ENS visa. For a full breakdown of test options and which scores DHA accepts, the guide on English test requirements for Australian skilled migration has everything you need.
Exemptions apply for passport holders from the United Kingdom, United States, Canada, New Zealand, and Ireland. TRT stream applicants who demonstrated competent English for their Subclass 482 or 457 visa may also rely on that prior evidence, provided DHA accepted it at the time.
6. A Weak Nomination Can Sink Your Application
This is the part most applicants underestimate. Spending months gathering your own documents while leaving the nomination in your employer’s hands without any oversight is one of the most common reasons Subclass 186 applications fail.
For a nomination to be approved by DHA, the employer must demonstrate that:
- The business is actively and lawfully operating in Australia
- The nominated position is genuine, full-time, and ongoing for at least two years
- The salary offered reflects genuine Australian market rates for the occupation and location
- The role was not created solely to facilitate the visa application
A nomination with inconsistencies between the role description and the company’s actual business activity, or one where the salary does not reflect market benchmarks, will be refused regardless of how strong your own documents are. If your employer has never prepared a nomination before, that is a significant risk. It is not a form to be filled in casually.
How RACC Indonesia Can Help You
The Subclass 186 visa involves two parallel applications: your employer’s nomination and your own visa application. A problem in either can result in refusal, even when the other side is well prepared. Most applicants only find this out after a decision has been made.
RACC Indonesia’s consultants are MARA-registered migration agents with direct experience preparing both TRT and DE stream applications. We work closely with employers on nomination documentation, including business activity evidence, role genuineness, and salary benchmarking, because that is where outcomes are won or lost.
The information in this article is general in nature. Immigration policy changes frequently, and every applicant’s circumstances are different. For advice specific to your situation and your employer’s readiness, speak with a MARA-registered migration agent before you apply. Book a paid consultation with RACC Indonesia to get a proper assessment of your Subclass 186 eligibility and your employer’s nomination before you commit to lodging.
Frequently Asked Questions (FAQ)
What is the Subclass 186 visa? The Subclass 186 visa is Australia’s Employer Nomination Scheme (ENS) permanent residency visa. An Australian employer nominates a skilled overseas worker for a specific role, and the worker applies for PR. Once granted, the holder can live and work in Australia indefinitely, access Medicare, and apply for citizenship after meeting the minimum residency requirement.
What is the difference between the TRT and Direct Entry stream? The TRT stream is for applicants currently on a Subclass 482 or 457 visa who have worked for their nominating employer for at least two years. The DE stream is for those without this Australian work history, and requires a positive skills assessment plus at least three years of relevant full-time work experience in the nominated occupation.
How long does the Subclass 186 visa take to process? As of April 2026, DHA’s published processing time for the Subclass 186 Direct Entry stream is approximately 17 to 20 months from the date of valid lodgement, per immi.homeaffairs.gov.au. TRT stream processing varies depending on the completeness and consistency of the nomination and visa application documents submitted.
Can a small business sponsor someone for the 186 visa? Yes. There is no minimum business size, revenue threshold, or employee count required for Standard Business Sponsorship. The business must show it is actively and lawfully operating in Australia and that the nominated role is a genuine, full-time, ongoing position. Small businesses with limited documentation of their operations often face more scrutiny from DHA during nomination assessment.
