TL; DR
- The Subclass 186 visa has two main employer-sponsored streams: Direct Entry (DE) and Temporary Residence Transition (TRT), each with distinct eligibility criteria.
- The TRT stream requires the nominee to have worked with the sponsoring employer for at least two years on a Subclass 457 or 482 visa before applying.
- The Direct Entry stream is open to workers who have not held a 457 or 482 visa but must meet stricter skills assessment and occupation list requirements.
- Age limits, English language thresholds, and approved occupation lists differ significantly between the two streams and can determine which pathway is accessible.
- Choosing the wrong stream is a costly mistake — understanding 186 direct entry requirements and TRT eligibility upfront protects your business and your nominee.
The Subclass 186 visa offers two employer-sponsored pathways to Australian permanent residence: the Temporary Residence Transition stream for workers already on a 457 or 482 visa with their sponsor, and the Direct Entry stream for those who have not held those visas. Key differences include required years of employment, English language levels, skills assessments, and eligible occupations. Selecting the correct stream from the outset is essential for a successful nomination outcome.
The subclass 186 Employer Nomination Scheme (ENS) is the primary Australian visa pathway for businesses seeking to permanently sponsor skilled foreign workers. It offers two streams: the Direct Entry stream and the Temporary Residence Transition stream – each designed to address different employment and visa circumstances.
Choosing the right stream depends on factors such as the nominee’s visa history, their employment history with the sponsoring business, and their overall eligibility. Each stream comes with its own criteria, documentation requirements, processing timeframes and associated costs. Employers need to be aware of these differences to ensure their nominated worker applies for the correct stream. The outcome of a visa application for the subclass 186 visa will depend on how well applicants meet the subclass 186 requirements.
The following information aims to provide human resources teams and business owners with the relevant information to identify the appropriate pathway for sponsoring skilled overseas workers for permanent residence.
Overview of the Subclass 186 Visa and Its Two Employer Streams
The subclass 186 visa is a permanent visa that allows approved Australian employers to sponsor skilled foreign workers for permanent residence. This visa has two streams: the Direct Entry stream and the Temporary Residence Transition stream.
The Direct Entry stream is for skilled overseas workers who are nominated by an Australian employer and have an occupation on the relevant list of eligible occupations.
The Temporary Residence Transition (TRT) stream is for skilled overseas workers who hold a subclass 457, 482 or eligible bridging visa and are nominated by their current employer for the subclass 186 visa.
The appropriate stream is determined by the visa applicant’s circumstances. It’s important the employers and nominees apply for the correct stream before lodging the application as processing times can be lengthy and the lodgement fees non-refundable.
186 Direct Entry Requirements: Who Qualifies for This Stream?
The subclass 186 Direct Entry stream is available to skilled overseas workers who meet the following requirements.
1. Formal Skills Assessment
Most applicants will need to have a skills assessment that shows they have the required skills to work in their nominated position. The relevant assessing authority for each occupation is indicated in the combined list of eligible skilled occupations.
Some applicants will not be required to have a skills assessment. Exemptions apply to applicants if they:
- have been nominated as an academic (university lecturer or faculty head at Academic level A, B, C, D or E) by a university in Australia
- have been nominated as a scientist, researcher or technical specialist by an Australian government scientific agency
- currently hold a Special Category (subclass 444) or New Zealand Citizen Family Relationship (subclass 461 visa) and have worked for their employer who nominated them for the nominated position for at least two years in the last three years prior to the date of visa application
2. Work Experience
Visa applicants must have three years of relevant work experience in their occupation in Australia or overseas. This work experience must be completed prior to lodging a visa application. Applicants who are exempt from a skills assessment are also exempt from the work experience requirement.
3. Age Requirement
Applicants must be under 45 years of age when they apply for this visa. Age requirement exemptions apply to applicants who:
- are nominated as an academic (university lecturer or faculty head at Academic level A, B, C, D or E) by a university in Australia
- have been nominated as a scientist, researcher or technical specialist at ANZSCO skill level 1 or 2 by a federal, state or territory government science agency or an Australian university
- currently hold a Special Category (subclass 444) or New Zealand Citizen Family Relationship (subclass 461 visa) and have worked for their employer who nominated them for the nominated position for at least two years in the last three years prior to the date of visa application. The two years excludes periods of unpaid leave.
4. English Language Requirement
Applicants must have at least competent English to be granted this visa. Applicants must achieve at least a 6 in each component of the International English Language Testing System (IELTS).
Other approved English tests include:
- Cambridge C1 Advanced Test
- Canadian English Language Proficiency Index Program General
- Michigan English Test
- Occupational English Test
- LANGUAGECERT Academic Test
- Pearson Test of English Academic
- Test of English as a Foreign Language Internet-based Test
Applicants can also prove competent English by showing a valid passport issued by one of the following countries:
- Canada
- New Zealand
- The Republic of Ireland
- The United Kingdom of Great Britain and Northern Ireland
- The United States of America
5. Occupation Lists
The applicant’s nominated occupation must appear on the Core Skills Occupation List (CSOL) to be nominated for a subclass 186 under the Direct Entry stream.
186 TRT Requirements: Transitioning from a 457 or 482 Visa
The Temporary Residence Transition stream is available to holders of a subclass 457 or 482 visa who meet the following requirements.
1. Exclusive Availability
Applicants of the TRT stream must hold or have held a subclass 457 or 482 visa sponsored by the same employer who is nominating them for the subclass 186 visa.
2. Employment Requirements
Applicants must have been employed in eligible sponsored employment for a total of two years in the three years prior to applying for their visa.
Eligible sponsored employment must be:
- full-time
- undertaken in Australia
- undertaken while holding a subclass 457, 482 or eligible bridging visa
- undertaken in the occupation they were granted the subclass 457 or 482 to perform
If the applicant has held multiple subclass 457 or 482 visa in the three years prior to the application, sponsored employment can be counted in any occupation the applicant was approved to work in.
If the applicant has changed employers in the three years prior to the application, sponsored employment can be counted from the date an approved nomination was lodged, if they started working with them before the nomination was approved.
3. No Formal Skills Assessment Required
Applicants of the TRT stream are not required to have a skills assessment, however, a decision maker can ask the applicant to obtain a skills assessment if they feel it’s necessary prior to granting the visa.
4. Age Requirement
Applicants must be under 45 years of age when they apply for this visa. Age requirement exemptions apply to applicants who:
- are nominated as an academic (university lecturer or faculty head at Academic level A, B, C, D or E) by a university in Australia
- have been nominated as a scientist, researcher or technical specialist at ANZSCO skill level 1 or 2 by an Australian scientific government agency or an Australian university
- are nominated as a medical practitioner and in the three years immediately prior to applying worked in that occupation in a designated regional area of Australia for at least two years as a subclass 457 or 482 visa holder. The nominated position is in a designated regional area of Australia
- as a subclass 457 or 482 visa holder, have worked in eligible sponsored employment for at least two years of the three years ending immediately before applying and earnings for each year of that period were at least as much as the Fair Work High Income Threshold.
5. English Requirements
Applicants must have at least competent English to be granted this visa. Applicants must achieve at least a 6 in each component of the International English Language Testing System (IELTS).
Other approved English tests include:
- Cambridge C1 Advanced Test
- Canadian English Language Proficiency Index Program General
- Michigan English Test
- Occupational English Test
- LANGUAGECERT Academic Test
- Pearson Test of English Academic
- Test of English as a Foreign Language Internet-based Test
Applicants can also prove competent English by showing a valid passport issued by one of the following countries:
- Canada
- New Zealand
- The Republic of Ireland
- The United Kingdom of Great Britain and Northern Ireland
- The United States of America
Side-by-Side Comparison: Direct Entry vs TRT at a Glance
| Direct Entry Stream | Temporary Residence Transition Stream |
Visa History Requirement | No prior subclass 457 or 482 visa with sponsor required | Must have held a subclass 457 or 482 visa with the same sponsor |
Skills Assessment | Mandatory positive skills assessment and three years of work experience (exemptions apply) | Not required unless requested |
Years of Employment with Sponsor | Nil | Must have completed two years of eligible sponsored employment, with their current employer being their most recent sponsor under the subclass 457 or 482 visa |
Age Requirements | Must be under 45 years of age (exemptions apply) | Must be under 45 years of age (exemptions apply) |
English Proficiency | Competent | Competent |
Occupation List | Occupation must be on Core Skills Occupation List | Must be in the same occupation that their temporary visa was granted for |
The 186 TRT stream is a favourable option for eligible nominees as there is no skills assessment requirement. The nominee also has an established employment history with their sponsor so can more easily justify a transition to permanent sponsorship. On the other hand, the 186 Direct Entry stream gives employers access to a greater talent pool as they are not restricted to sponsoring employees who have previously worked for them.
The occupation lists can also impact Direct Enty stream visa applications. If an occupation is no longer on the CSOL, then an application can’t proceed however, in the case of the TRT stream, if the employee is working in an occupation no longer available on the relevant list, they can still proceed with their application as they are already employed in that role.
It is recommended that employers consult with a registered migration agent to discuss their specific circumstances and the options available to them.
Employer Considerations when sponsoring for the subclass 186
As a business sponsor, the employer must adhere to their sponsor obligations and requirements.
1. Standard Business Sponsorship
Employers must continue to comply with their business sponsor obligations if they are already an approved business sponsor
2. Conditions of Employment
The nominated position must genuinely exist and be full-time. The salary for a nominated skilled overseas worker must be in line with the Annual Market Salary Rate (AMSR).
3. Documentation Obligations
Employers must ensure they keep records showing their compliance with their sponsorship obligations for all 482 visa holders. This includes payslips, employment contacts, tax records, written requests for payment of travel costs etc. These records must all be kept in a reproducible format.
4. Incorrect Stream Selection
Employers must be aware that they can’t nominate an employee who holds a subclass 482 visa with another employer for the TRT stream. Attempting to do so will result in a visa refusal and the visa application fees will be non-refundable.
Which Stream Is Right for Your Business? A Decision Framework
When it comes to deciding which stream is right for your business, you need to consider the current circumstances of the nominee.
Where the skilled worker is already sponsored by your business under a subclass 457 or 482 visa, then the Temporary Residence Transition stream is the right choice for your business.
If the skilled worker is overseas or has no prior subclass 457 or 482 visa within your business then the Direct Entry stream is suitable, provided the applicant meets the occupation, skills, age and English requirements.
It is recommended you consult with a registered migration agent prior to lodging the visa application. This will ensure any errors in stream selection or requirements can be corrected prior to lodging the application. Correcting errors post-lodgement can be difficult.
Visa Solutions Australia offers expert employer migration support for both streams of subclass 186 visa across a wide range of industries and occupations.
Selecting the correct subclass 186 visa stream is one of the most significant employer migration decisions a business can make. Eligibility for each of these streams is determined by the applicant’s ability to meet all eligibility criteria and requirements and not preference. Contact the experienced team of registered migration agents at Visa Solutions Australia before lodging your nomination paperwork.
The nominee must be under 45 years of age, have three years of relevant work experience, hold a positive skills assessment, demonstrate competent English, and work in an occupation on the approved skilled occupation list for the Direct Entry stream.
Under the 186 TRT stream, the nominee must have worked full-time in the occupation they were granted a Subclass 457 or 482 for at least 2 years, and your business must be their most recent employer who sponsored them under a Subclass 457 or 482 visa.
No. One of the key advantages of the TRT stream is that a formal skills assessment is generally not required, saving time and cost compared to the Direct Entry stream, which mandates a positive skills assessment.
Yes, provided they meet all Direct Entry eligibility criteria including age, English proficiency, skills assessment, work experience, and occupation list requirements regardless of their current visa subclass.
The application is likely to be refused. Lodgement fees are generally non-refundable, and a new application under the correct stream must be lodged. Professional migration advice before lodgement is strongly recommended.
