Subclass 186 ENS: direct entry vs Temporary Residence Transition stream

The Subclass 186 Employer Nomination Scheme (ENS) visa is the primary employer-sponsored pathway to Australian permanent residency. Unlike the 189 and 190, it does not use the points test. Instead, it requires a job offer — in the form of an approved nomination — from an Australian employer. For applicants already working in Australia on a temporary skilled visa, the 186 is the logical end of the pipeline. For offshore applicants with a willing employer, it offers a direct PR pathway that bypasses the SkillSelect pool entirely.

Two main streams exist: the Direct Entry stream and the Temporary Residence Transition (TRT) stream. A third, the Labour Agreement stream, applies to employers operating under a negotiated agreement with the Commonwealth and is outside the scope of this article. This article covers eligibility across both primary streams, the nomination process from the employer’s perspective, the common rejection points, and the changes introduced with the Core Skills Occupation List (CSOL) that took effect in December 2024.

Who this pathway is for

The 186 is for skilled workers who have an employer willing to nominate them for a permanent position. The distinguishing feature of the 186 — and the reason it is attractive to certain applicants — is that it does not impose a points test. The applicant does not compete against other EOIs in a pool. If the employer’s nomination is approved and the applicant meets the stream-specific criteria, the visa is granted.

The trade-off is employer dependence. The nomination belongs to the employer, not the applicant. If the employer withdraws the nomination, changes its mind, or ceases to operate, the application fails. This is fundamentally different from the 189, where the applicant controls every element of the application.

The 186 also imposes an age limit of 45 at the time of application, though exemptions apply in limited circumstances: applicants who are nominated as an academic (university lecturer or faculty position at Level B or above, or Level A for a scientist/researcher), applicants nominated as a Minister of Religion or Medical Practitioner, or applicants earning at or above the Fair Work High Income Threshold (currently AUD 175,000) may apply for an age exemption under regulation 186.221. These exemptions are not automatic and must be claimed with supporting evidence.

Stream 1: Direct Entry

The Direct Entry stream is for applicants who have never held a temporary skilled visa in Australia for the required period, or who have held one but prefer not to rely on the TRT pathway. The requirements are:

Occupation. The nominated occupation must be on the Core Skills Occupation List (CSOL) — the same list used for the Core Skills stream of the 482 visa. Prior to December 2024, Direct Entry used the MLTSSL. The CSOL is broader than the MLTSSL and includes several occupations that were previously only available under the STSOL or ROL, including certain trades and technical roles.

Skills assessment. Most Direct Entry applicants must obtain a positive skills assessment from the relevant assessing authority. This requirement is waived for certain applicants: those nominated as an academic, a Minister of Religion, or a scientist/researcher (ANZSCO Skill Level 1, employed by an Australian university or government research agency), and those who are already working in the nominated occupation in Australia for the nominating employer and have held a 457 or 482 visa for at least two of the last three years.

English language. Competent English is the baseline (IELTS 6.0 / PTE 50). This is lower than the 189/190 requirement of Competent English plus the points-test incentive to reach Proficient or Superior. For 186 Direct Entry, there is no additional advantage to higher English scores.

Work experience. The applicant must demonstrate at least three years of relevant work experience in the nominated occupation. This is a stricter standard than the 482 Core Skills stream (which requires one year under the CSOL regime), and the experience must be post-qualification. The Department’s policy is that the three years may be accumulated in Australia or overseas, but must be in the nominated occupation or a closely related occupation at the same ANZSCO skill level.

Age. Under 45, unless an exemption applies.

Stream 2: Temporary Residence Transition (TRT)

The TRT stream is for applicants who currently hold, or recently held, a subclass 457 or 482 visa and who have worked for the nominating employer for a qualifying period. The key differences from Direct Entry:

No skills assessment. TRT applicants are generally exempt from the skills assessment requirement, provided they are nominated in the same occupation for which their 457 or 482 was granted.

Lower English requirement. Competent English applies in the same way as Direct Entry. No Superior or Proficient requirement.

Shorter qualifying period. Prior to November 2023, TRT required three years of employment with the nominating employer. The reform reduced this to two years (effective from 25 November 2023) for all 457/482 holders who held their visa for at least two of the last three years at the time of application.

Occupation flexibility. The nominated occupation must be the occupation for which the 457/482 was granted, or a closely related occupation. The Department’s policy guidance is that occupations within the same ANZSCO unit group are generally considered closely related.

The nomination process: what the employer must do

The employer’s nomination is the critical path item for all 186 applications. Without an approved nomination, the visa cannot be granted. The employer must:

1. Be an actively operating lawful business. The Department scrutinises shell companies and newly registered entities with no trading history. An employer with fewer than eight employees may be asked to provide additional evidence of genuine need.

2. Identify a genuine vacancy. The position must be full-time and ongoing (available for at least two years beyond visa grant). The employer must demonstrate that the position fits within the business’s operational structure.

3. Satisfy the training benchmark (for certain employers). The Skilling Australians Fund (SAF) levy replaced the old training benchmark in 2018. The levy is payable at the time of nomination and is calculated based on the business’s annual turnover and the number of years of nomination. For a business with turnover below AUD 10 million, the levy is AUD 1,200 per year; above that, AUD 1,800 per year. The nomination period determines the total: a Direct Entry nomination (three years) costs the employer AUD 3,600 or AUD 5,400.

4. Demonstrate that terms and conditions are no less favourable than for an Australian worker. The employer must provide evidence — typically a market salary analysis — that the nominated salary is at or above the market rate for the occupation in the relevant location.

5. Not have engaged in discriminatory recruitment practices. The Department’s policy guidance requires employers to confirm that no suitably qualified Australian citizen or permanent resident was available for the role. While the 186 does not impose formal labour market testing in the same way as the 482, the employer is expected to have tested the market.

Common rejections

Nomination refused because the business cannot demonstrate genuine need. This is the most frequent refusal ground. A small business nominating a marketing specialist with no prior marketing function, for example, will be scrutinised. The Department looks at organisational charts, financial statements, and the business’s operational history.

Salary below market rate. The Department cross-references nominated salaries against industry data, including the ABS Employee Earnings and Hours survey and job-outlook data published by the National Skills Commission. A nominated salary 15% or more below the market rate is likely to be challenged.

Inconsistent occupation classification. The employer nominates an occupation, but the duties described in the position description do not match the ANZSCO description for that occupation. The Department and the relevant assessing body may reach different conclusions about the correct classification.

Age limit exceeded without an exemption. The 45-year age limit is strictly applied. Applicants who turn 46 while the nomination is being processed need to check whether an age exemption applies before incurring the VAC.

Sponsorship obligations not met. If the employer has previously sponsored visa holders and has a record of non-compliance — failure to pay market salary, failure to keep records, or failure to notify the Department of changes — the nomination may be refused on character or compliance grounds.

The CSOL and what it changed

The Core Skills Occupation List, introduced on 7 December 2024, replaced the previous system of three occupation lists (MLTSSL, STSOL, ROL) for certain visas. For the 186 Direct Entry stream, the CSOL replaced the MLTSSL. The practical effect was an expansion: occupations such as Customer Service Manager, Real Estate Representative, and certain trades that were previously ineligible for Direct Entry became eligible.

For the TRT stream, the occupation list change was less significant because TRT applicants are nominated in the occupation for which their 457 or 482 was already granted.

A separate Specialist Skills List covers occupations with a salary threshold of AUD 135,000 or above, and an Essential Skills List is under development for occupations below the TSMIT with specific industry agreements. Neither currently intersects with the 186.

Key takeaways

1. The employer nomination is the binding constraint. If the employer is not fully committed — including covering the SAF levy and providing the required documentation — the application will not succeed.
2. The TRT stream is generally the simpler path for onshore applicants who have already held a 457 or 482 for two years. No skills assessment, no three-year experience requirement, and a well-established documentary chain from the previous visa.
3. For offshore applicants, the Direct Entry stream is viable but requires three years of post-qualification experience and a positive skills assessment. The employer must also satisfy the genuine-need test, which is harder for an employer who has never worked with the applicant.
4. The CSOL expansion has opened the door for several occupations that were previously ineligible. Applicants in those occupations should confirm that their occupation code is on the CSOL as published on the Home Affairs website before proceeding.
5. Age exemptions are narrow. If you are over 45, confirm eligibility for an exemption before incurring the application cost. The academic, medical practitioner, and high-income thresholds are the main categories; general skilled workers over 45 without one of those categories have no 186 pathway.