Three Streams, One Outcome

All three streams lead to the same result - permanent residency - but who qualifies, and on what basis, is different for each.

Stream Best For Work Experience Skills Assessment Age
Temporary Residence Transition (TRT) 482 or 457 holders transitioning with their sponsor At least 2 years of eligible sponsored full-time employment while holding an eligible 457 or 482 visa, subject to current requirements. Not required Under 45 (exemptions apply)
Direct Entry (DE) Skilled workers without prior 482 history 3 years relevant experience Generally required unless exempt Under 45 (exemptions apply)
Labour Agreement Workers under a bespoke government agreement Per agreement Per agreement Per agreement

One thing worth flagging upfront: Labour Market Testing is not generally required for standard Subclass 186 Temporary Residence Transition or Direct Entry nominations. However, where a Labour Agreement specifies Labour Market Testing requirements, the employer must provide the required recruitment evidence. Always check the terms of the applicable Labour Agreement before nomination. That's a significant practical difference from the 482 and something employers often don't realise when they're first looking at the pathway.

Temporary Residence Transition (TRT) Stream

The Temporary Residence Transition stream generally requires at least two years of eligible sponsored full-time employment completed while holding an eligible Subclass 457 or 482 visa, subject to the current eligibility and timing requirements. Eligible sponsored employment with more than one approved sponsor may count. Since 7 December 2024, eligible sponsored full-time employment can count regardless of occupation. The occupation nominated for the Subclass 186 must satisfy the current occupation-alignment rules associated with the applicant’s most recently held eligible temporary skilled visa. Current ANZSCO and transitional requirements should be checked before lodging. Home Affairs confirms eligible sponsored employment can count regardless of occupation. See the current TRT requirements and Home Affairs program report.

What you need for TRT
  • Current or recently held Subclass 482, 457, or eligible bridging visa.
  • Two years full-time employment in the nominated occupation with approved sponsors.
  • Nomination for a genuine, ongoing, full-time position.
  • Competent English - IELTS 6.0 in each band or accepted equivalent, unless exempt.
  • Generally under 45 at time of application, unless exempt.
  • Health and character requirements met.

No skills assessment required. What does matter - and what causes problems when it's not checked early - is that the ANZSCO unit group on the 186 nomination has to match the unit group from the 482 role. Four digits, same group. That alignment needs to be confirmed before the 482 is lodged, not two years later when the TRT nomination is being prepared.

Book a Consultation FREE • 10-Minute Pre Assessment
Direct Entry (DE) Stream

Direct Entry applies where there's no qualifying 482 history with the nominating employer - whether the applicant is currently in Australia or applying from overseas. What you need for Direct Entry

Nomination by an approved Australian employer for a genuine, ongoing, full-time role.
Positive skills assessment from the relevant assessing authority, unless an exemption applies.
At least three years of relevant full-time work experience in the nominated occupation.
Generally under 45 at time of application, unless exempt.
Temporary Residence Transition and Direct Entry applicants generally require Competent English unless exempt. Requirements under the Labour Agreement stream depend on the applicable labour agreement.
Health and character requirements met.

The skills assessment is the piece that needs the most lead time. Depending on the occupation and assessing body - Engineers Australia, ANMAC for nursing, ACS for IT, TRA for trades - turnaround can be anywhere from a few weeks to several months. With 186 Direct Entry processing currently running 12 to 19 months, a delayed assessment at the start creates a compounding problem later.

Labour Agreement Stream

Used where an employer operates under a formal labour agreement with the Australian Government - most commonly in aged care, hospitality, agriculture, and certain regional industries. Age, English, salary, and skills concessions can be built into the agreement, but they have to be explicitly negotiated. Processing times vary by stream, application circumstances and Department workload. Check the current Home Affairs processing-time guide; no stream is guaranteed to be faster.

Requirements Vary by Stream
Applicant Requirements
  • Nominated by an approved Australian employer for a genuine, full-time, ongoing position.
  • Generally under 45 - exemptions exist for certain high-income earners, academics, researchers, scientists, and New Zealand citizens with qualifying Australian work history.
  • English requirements depend on the stream and any applicable exemption or Labour Agreement concession.
  • Health examination with a Department-approved panel physician.
  • Police certificates may be required for applicants and relevant family members aged over 16 for each country where they have lived for 12 months or more in the past 10 years since turning 16, in accordance with current Home Affairs character requirements.
  • Previous visa refusals, cancellations or Australian Government debts must be assessed against the applicable visa criteria and do not automatically make every applicant ineligible.
  • Secondary applicants aged 18 and over must demonstrate Functional English or pay a second instalment charge at grant.
Employer requirements
  • An eligible Australian employer must nominate the applicant for the relevant Subclass 186 stream. The employer must meet the applicable nomination requirements and be actively and lawfully operating in Australia. For the Labour Agreement stream, the employer must be party to an applicable labour agreement. Standard Business Sponsorship is not itself a general requirement for all Subclass 186 nominations.
  • Nominating for a genuine, ongoing, full-time position - this is the most scrutinised element of any 186 nomination.
  • For standard nominations, the applicable income threshold and Annual Market Salary Rate requirements must be met. Labour Agreement concessions may apply where expressly provided by the agreement.

The SAF levy is payable by the employer at nomination and cannot be passed to the worker under any arrangement. Ministers of Religion and Religious Assistants under a Labour Agreement are exempt.

The 482 to Permanent Residency Pathway

For workers on a 482, the TRT stream is the most direct road to PR - and the planning for it should start long before the two-year mark arrives. Occupation selection and ANZSCO alignment at the 482 stage shapes whether the TRT nomination two years later is straightforward or complicated. The documentation built during the 482 period - payslips, contracts, tax records, position descriptions - directly underpins the nomination. Cases that run smoothly at TRT stage are the ones where that evidence exists and is consistent, not the ones where someone tries to reconstruct two years of employment records from memory six months before lodgement.

The sequence in practice: During the 482 - work full-time in the nominated occupation, keep employment documentation current from day one, confirm ANZSCO alignment is correct. At the two-year mark - employer lodges the TRT nomination, visa application typically goes in concurrently. If you lodge a valid Subclass 186 application while in Australia, you may be granted a bridging visa to maintain your lawful status if your current substantive visa expires before a decision is made. Any work rights depend on the conditions attached to the bridging visa, so applicants should check their grant notice or VEVO before working. If you need to travel internationally during this period, a Bridging Visa B must be applied for before departure - the BVA doesn't cover overseas travel. One issue the current processing environment creates: health examinations and police clearances are valid for 12 months. With TRT and Direct Entry cases currently taking 13 to 18+ months, there's a real risk documents expire mid-assessment. This needs active monitoring - not something to check once at lodgement and forget about. On grant - permanent residency takes effect immediately. No employment restriction applies from that point.

Book a Consultation FREE • 10-Minute Pre Assessment
Costs and Government Fees
Cost Item Amount (AUD) Who Pays
Nomination fee $540 Employer
SAF levy — turnover under $10M $3,000 (one-off) Employer
SAF levy — turnover $10M or more $5,000 (one-off) Employer
Visa application charge — Primary applicant $6,140 (from 1 July 2026) Applicant
Visa application charge — Secondary applicant (18+) Verify at DHA Applicant
Visa application charge — Secondary applicant (Under 18) Verify at DHA Applicant
Second instalment (Adult secondary without Functional English) Verify at DHA Applicant
Skills assessment (Direct Entry only) ~$300–$2,000 Applicant
English test (IELTS/PTE) ~$350–$450 Applicant
Health examination ~$300–$600 per person Applicant
Police clearances Varies by country Applicant

Visa fees, eligibility criteria, and processing details are subject to change by the Department of Home Affairs at any time. This page is general information only and does not constitute migration advice. Always confirm current requirements on the immi.homeaffairs.gov.au or with our MARA-registered migration agent before making decisions based on this content.

Processing Times

The 186 is not a quick visa. Current benchmarks reflect that honestly.

Stream 50% of Applications 90% of Applications
Direct Entry 12–13 months 18–20 months
TRT 13–14 months 18 months
Labour Agreement 5 months 9 months

Applications are processed under Ministerial Direction 119, which took effect on 25 July 2026. Priority is now determined by both occupation and whether the applicant is in Australia at the time of application. The highest priority is given to law enforcement and defence-related occupations, followed by construction, healthcare and teaching occupations for applicants in Australia. Other applicants in Australia are generally prioritised ahead of applicants outside Australia. Processing times vary and should be checked against the Department of Home Affairs’ current processing guidance.

For 2026–27, the Australian Government has set a planning level of 58,040 places for the Employer-Sponsored category of the permanent Migration Program. This is a category-level planning figure rather than a Subclass 186-specific allocation. Skilled visa applications are also processed according to the Government’s current processing priorities, so individual processing times can vary substantially. A decision-ready application is the only thing within your control that reduces avoidable delay. Every Request for Further Information adds weeks, sometimes months. Consistent documentation, salary evidence that holds up, a position description that clearly establishes the role as genuine - these are the variables that matter.

Common Reasons Applications Are Refused or Delayed

A common nomination risk is failing to provide sufficient evidence that the position is genuine and ongoing.It's not usually that the role doesn't exist - it's that the nomination doesn't demonstrate it clearly enough. A position description written for the visa rather than the business, no organisational context, no financial basis for the role being ongoing. Case officers read these carefully and the burden of proof sits entirely with the employer. Salary is the other nomination-stage issue that trips people up regularly. Two thresholds apply - the CSIT and the Annual Market Salary Rate for the specific occupation and location — and both need to be met. An offer that clears the CSIT but sits below market rate for the region is still a problem.

For TRT cases, employment gaps are scrutinised closely. Unpaid leave, part-time periods, any break in full-time sponsored employment reduces the qualifying period and can push an applicant below two years even when they've been with the employer the whole time. Payslips, tax records, and contracts need to be consistent and complete across the full period. ANZSCO mismatch is where TRT cases specifically come unstuck. The unit group on the 186 nomination has to match the unit group from the 482 - four digits, same group. If there's a discrepancy between what the 482 described and what the applicant actually does, it surfaces at the nomination stage two years later. Entirely preventable, but only if it's checked before the 482 is lodged.

Common Direct Entry risks include insufficient relevant employment evidence, occupation mismatch and failure to satisfy the applicable skills-assessment requirements. The skills assessment confirming the occupation is necessary but not sufficient - the work history behind it needs to stand up independently. Documentation inconsistency and expired health or character clearances round out the common issues. With processing times regularly exceeding 12 months, clearances obtained at lodgement often expire before a decision is made. This needs to be actively managed throughout the processing period.

What the 186 Gives You

Permanent residency from the date of grant means no expiry date, no renewal, and no employer restriction from day one. Work for anyone, anywhere in Australia, in any occupation. Medicare access is immediate. Your partner and dependent children come with you, with full work and study rights for your partner from the same date. Travel is unrestricted for five years from the grant date - after that, a Resident Return Visa is needed to re-enter as a permanent resident, which is a routine process most people address when it becomes relevant. You can also sponsor eligible relatives for their own permanent residency pathways. On citizenship: the requirement is four years of lawful residence, including at least 12 months as a permanent resident. For most 186 holders who've been in Australia on a 482, time on the temporary visa counts toward the four-year total. The 12-month permanent residency clock starts at grant. It's worth knowing where you'll sit on that timeline from the point the 186 comes through.

How Kritin Global Can Help

The 186 refusals we see most often aren't caused by ineligible applicants. They're caused by occupation codes that don't quite match, position descriptions that don't establish genuineness clearly enough, salary evidence that technically meets the threshold but doesn't hold up to scrutiny, or TRT periods that look fine on paper until someone checks the actual payroll records. None of those are unfixable. They're all things that get caught and addressed when the groundwork is done properly.

Our MARA-registered agent works with both sides of a 186 application - the employer and the applicant , across all three streams and including complex cases involving age exemptions, aggregated TRT experience across multiple sponsors, and occupation mismatch resolution. For workers on a 482, we build the PR transition strategy from the day the 482 is lodged, not when the two-year mark arrives. If there's a pathway, we'll tell you what it is and what it's going to take to get there.

Book a Consultation FREE • 10-Minute Pre Assessment
Frequently Asked Questions

From the date the visa is decided, you're a permanent resident. There's no provisional stage, no additional waiting period, no second grant. If you're onshore when the decision comes through, it takes effect that day. If you're offshore, it takes effect when you first enter Australia on the visa. That immediacy is what makes the 186 fundamentally different to every temporary employer-sponsored pathway.

The employer pays it, and that's not optional or negotiable. For businesses with annual turnover under $10 million the levy is $3,000, paid once at nomination. For larger businesses it's $5,000. What the law says clearly is that this cost cannot be recovered from the worker - not directly, not through a salary arrangement, not through any other structure. If an employer suggests otherwise, that's worth flagging to a registered migration agent before proceeding.

Labour Market Testing is not generally required for standard Subclass 186 Temporary Residence Transition or Direct Entry nominations. However, recruitment evidence may be required where the applicable Labour Agreement specifies Labour Market Testing requirements.

TRT may be available if the applicant meets the current requirements, including at least two years of eligible sponsored employment during the three years before application. Direct Entry or the Labour Agreement stream may be relevant in other circumstances.

If a valid Subclass 186 application is lodged while the applicant is in Australia, a bridging visa may be granted. It generally comes into effect when the current substantive visa ends. Work rights depend on the conditions attached to the bridging visa and should be checked in the grant notice or VEVO. A Bridging Visa B must be obtained before international travel where required.

Subclass 186 does not impose an employer-specific work condition after grant. However, the nomination must relate to genuine employment expected to be available for at least two years, and the intentions of the employer and applicant must be genuine during the application process. Any change after grant should be considered according to its particular circumstances.

The general limit is 45 at time of application. Exemptions exist for certain high-income earners, academics, researchers, and scientists - and for some New Zealand citizens with qualifying Australian work history. These exemptions have specific criteria and aren't broadly available, but if you're close to 45 or already past it, it's worth having your situation assessed before assuming you're out of the running.

Your partner and dependent children can be included. The partner gets full work and study rights from the date of grant. For adult secondary applicants - anyone 18 and over being included — there's a Functional English requirement. If that isn't met, a second instalment charge applies at the grant stage rather than upfront, but it is a real additional cost that should be factored into the budget.

Processing times vary by stream, occupation, applicant location, application completeness and Department priorities. Check the current Home Affairs processing-time guide. Published figures are indicative and do not guarantee a decision date.

Disclaimer

Fees and eligibility criteria are reviewed periodically. Always verify current figures and process requirements at immi.homeaffairs.gov.au before lodging. This page is general information - contact us for advice specific to your situation.

MARN: 2619385

Request a Free Consultation Today!
×