Subclass 186: How the Employer Nomination Scheme Visa Works

What the 186 Visa Is

The Subclass 186 (Employer Nomination Scheme) visa is a permanent, employer-sponsored visa. Unlike the 189 and 190, which are points-tested and ranked through SkillSelect, the 186 depends on nomination by an approved Australian employer rather than a points score, and it's one of the few permanent visas that can be granted with no temporary visa step in between.

Official visa page: Employer Nomination Scheme visa (subclass 186) - Department of Home Affairs

The Three Streams

The 186 isn't a single pathway, it splits into three streams depending on the applicant's circumstances:

• - Direct Entry - for applicants applying for PR directly, whether offshore or onshore, who haven't held a qualifying temporary visa long enough to use the Temporary Residence Transition stream

• - Temporary Residence Transition (TRT) - for applicants already working in Australia on a Subclass 482 (or the earlier Subclass 457), who have worked for the same employer for the required period

• - Labour Agreement - for applicants whose employer has a labour agreement in place with the Australian Government, which can set its own terms outside the standard occupation list and salary settings

Which stream applies depends on visa history and current employment, not personal preference, so it's determined by circumstances rather than chosen freely.

Core Requirements

• - Employer nomination - an approved Australian employer, generally a standard business sponsor, must lodge a nomination confirming the position is genuine, full-time, and required for their operations

• - Occupation - must be on the Core Skills Occupation List (CSOL) for Direct Entry and TRT streams; Labour Agreement streams follow the terms of that specific agreement

• - Age - under 45 at the time of application for Direct Entry, with exemptions in some circumstances; no age limit generally applies to the TRT stream

• - Skills assessment - required for Direct Entry in most occupations, plus a minimum period of relevant work experience

• - English - Competent English or higher, with exemptions in some circumstances

• - Salary - must meet the Core Skills Income Threshold (CSIT), which is indexed on 1 July each year, and the Annual Market Salary Rate for the position

Salary Thresholds

The Core Skills Income Threshold applies to 186 nominations and is set annually. For nominations lodged in the 2026-27 financial year, the threshold sits at approximately AUD $79,423, up from the prior year's figure. Meeting this baseline isn't the only test, the employer must also demonstrate the salary meets the Annual Market Salary Rate for the specific position, meaning what an Australian worker in an equivalent role would genuinely be paid.

Current threshold guidance: Salary requirements for skilled visas - Department of Home Affairs

Labour Market Testing

Labour Market Testing (LMT), demonstrating that a genuine attempt was made to recruit an Australian worker first, is a mandatory requirement for Subclass 482 nominations but is not generally required in the same formal way for a 186 Direct Entry nomination. That said, the genuine position test still applies, meaning a case officer can still ask an employer to show how the role came about, so recruitment records remain useful evidence even where LMT itself isn't mandatory.

The Employer's Ongoing Obligations

Sponsorship obligations don't end once the visa is granted, they continue for the life of the sponsorship. An approved sponsor is required to meet obligations around workplace conditions, record-keeping, and cooperating with Home Affairs, and breaches can result in sanctions or bars from future sponsorship.

Sponsor obligations: Sponsor obligations - Department of Home Affairs

Visa Application Fees

As of the current fee schedule, the Department of Home Affairs lists the subclass 186 charge from approximately AUD $4,910 for the main applicant, lower than the 189 and 190 charges, with concessions available in limited circumstances. This is the visa application charge only, it doesn't include the skills assessment, English test, health examinations, police certificates, or the nomination itself, which are separate costs.

Use the official Visa Pricing Estimator immediately before lodging, since the applicable charge is set by the date Home Affairs receives the application.

186 vs 189 and 190

	Subclass 189	Subclass 190	Subclass 186
Basis	Points test	Points test + state nomination	Employer nomination
Sponsor required	None	State/territory	Employer
Occupation list	MLTSSL	MLTSSL or STSOL	CSOL (Direct Entry/TRT)
Salary requirement	Not applicable	Not applicable	Must meet CSIT and AMSR
Points test	Required	Required	Not applicable

Where the 189 and 190 are about scoring enough points, the 186 is about the strength of a specific job offer and employer, which makes it a fundamentally different pathway rather than a points-based alternative.

How the Process Runs

1. 1. The occupation and applicable stream are confirmed based on visa history and employment circumstances

1. 2. A skills assessment is obtained where required for the stream

1. 3. The employer, as an approved sponsor, lodges the nomination, demonstrating the position is genuine and meets salary requirements

1. 4. The visa application is generally lodged alongside or shortly after the nomination

1. 5. Health and character checks are completed and a decision is issued on both the nomination and the visa

A Note on This Guide

This is general information, not migration advice. Streams, occupation lists, salary thresholds, and fees change regularly, particularly at each 1 July indexation, and eligibility depends on individual circumstances, including an employer's sponsorship status. For advice on a specific case, a registered migration agent or immigration lawyer is the right person to talk to. For the current rules, always check the Department of Home Affairs directly.