The Australian Subclass 186 Employer Nomination Scheme (ENS) visa is a highly sought-after pathway to permanent residency for skilled workers. It allows eligible individuals nominated by an Australian employer to live and work in the country indefinitely.

As of July 2025, the Australian immigration system places strong emphasis on genuine employment and employer compliance. Understanding the nuanced 186 visa conditions is essential for both visa holders and sponsoring employers to ensure a smooth transition and long-term compliance.

This in-depth guide provides a detailed analysis of the core requirements, recent updates, and ongoing obligations associated with the Subclass 186 visa, offering actionable advice and current regulatory information.

Understanding the Subclass 186 Visa Streams and Requirements

The Subclass 186 visa facilitates permanent residency in Australia and is divided into three distinct streams, each with specific eligibility criteria for the applicant and the nominating employer:

1. Direct Entry (DE) Stream

The DE stream is designed for skilled workers who are nominated directly by an employer and who meet the criteria for a permanent position.

• Key Requirements: Applicants generally need a positive skills assessment in their nominated occupation, at least three years of relevant work experience, and competent English language skills (IELTS 6.0 or equivalent in each band). The nominated occupation must typically be on the Medium and Long-term Strategic Skills List (MLTSSL).

2. Temporary Residence Transition (TRT) Stream

The TRT stream is the most common pathway for individuals already working in Australia on a temporary skilled visa (like the Subclass 482 or 457) to transition to permanent residency.

• Recent Updates (2025): Significant changes have been implemented to the TRT stream. As of recent policy shifts, the requirement for continuous employment with a single employer has been removed. Applicants can now combine work experience from multiple approved sponsors to meet the necessary duration (typically two to three years) within a specified timeframe. Furthermore, the TRT stream no longer faces occupation list restrictions, allowing a broader range of skilled workers to apply for permanent residency.

3. Labour Agreement Stream

This stream is for applicants nominated by an employer who has an active Labour Agreement with the Australian Government. The conditions and requirements are specific to the terms of the individual agreement.

Core 186 Visa Conditions (Post-Grant Obligations)

The Subclass 186 visa is a permanent visa, meaning it allows the holder to live and work in Australia indefinitely. However, while it grants substantial freedom, there are specific conditions and expectations, particularly concerning the initial employment period, designed to ensure the integrity of the Employer Nomination Scheme.

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The "Genuine Position" and Employment Requirement

A fundamental condition of the 186 visa grant is that the nominated position must be genuine and ongoing for at least two years.

• Condition 8579 (ENS and RSMS visas): Although the 186 visa is a permanent visa, many visa holders granted under certain streams have historically been subject to a condition (often referenced as 8579 in older regulations, or equivalent compliance expectations) requiring them to commence work within a specified period (usually six months) and remain employed in the nominated position for a minimum duration.
• The Two-Year Expectation: While the 186 visa grants permanent residency, the Department of Home Affairs (DHA) expects the visa holder to remain employed by the nominating employer in the nominated role for at least two years following the visa grant. This expectation is central to the integrity of the scheme, ensuring that the visa was applied for in good faith and based on a genuine need for the position.

Example of Genuine Intent vs. Non-Compliance:

• Genuine Intent: A visa holder is made redundant six months after their 186 visa is granted due to a genuine downturn in the company’s industry. The visa is unlikely to be affected.
• Non-Compliance: A visa holder resigns three months after the visa grant to take a similar job elsewhere, and documentation shows they were negotiating the new job before the visa was granted. The DHA may view this as a fraudulent application, potentially leading to visa cancellation.

Clarifying What Conditions Don't Apply

It is a common misconception that permanent visas carry the same restrictions as temporary ones. For the 186 visa:

• Condition 8503 ("No Further Stay"): This condition is typically applied to visitor or some temporary visas to prevent applications for further visas onshore. It is generally not applied to the permanent Subclass 186 visa.
• Condition 8579 (Regional Requirements): While conditions requiring regional residency are crucial for visas like the Subclass 491 (Skilled Work Regional), they do not apply to the 186 visa, which is focused on employer-sponsored permanent residency across Australia.

Employer Obligations and Up-to-Date Compliance

Sponsoring employers under the Employer Nomination Scheme must meet strict obligations to ensure fair treatment of the visa holder and compliance with Australian immigration law.

Skilling Australians Fund (SAF) Levy

Employers are required to pay the SAF levy as a one-off contribution when nominating a worker for a permanent visa like the 186. This levy is used to support training for Australian workers.

• Current SAF Fees: For permanent visas, the SAF levy is AUD$3,000 for businesses with an annual turnover less than 10million,and∗∗AUD5,000** for businesses with an annual turnover of $10 million or more.

Meeting the New TSMIT (Temporary Skilled Migration Income Threshold)

Employers must ensure the nominated salary meets the Annual Market Salary Rate (AMSR) for the occupation and is at least equal to the TSMIT.

• TSMIT Update (Effective July 1, 2025): The Australian Government has increased the TSMIT from $73,150 to $76,515. All nominations lodged on or after this date must meet the new threshold or the AMSR, whichever is higher.

Including Family Members on the 186 Visa

The Subclass 186 visa allows the main applicant to include eligible family members (partners and dependent children) in their application.

Key Requirements for Family Members:

• Health and Character: All family members included in the application must meet Australia’s health and character requirements, which typically involves medical checks and police clearances.
• The "Second Installment" (English Language Fee): A crucial financial consideration is the second installment of the Visa Application Charge (VAC). If family members aged 18 or older cannot demonstrate "Functional English" (e.g., IELTS 4.5 average or equivalent), a significant additional fee must be paid to the DHA to grant the visa.

Actionable Advice: Maintaining Compliance

For 186 Visa Holders:

• Know Your Rights: Understand that as a permanent resident, you are protected by Australian workplace laws (Fair Work Australia).
• Document Everything: Keep records of your employment, including contracts, pay slips, and any communication regarding changes in your role or employment status.
• Genuine Change vs. Fraud: If you need to leave the nominated employer, ensure you can demonstrate that the reasons were legitimate (e.g., redundancy or genuine workplace issues) and that your original application was made in good faith.

For Sponsoring Employers:

• Maintain Genuine Need: The nominated position must remain genuine and essential to the business operations.
• Adhere to Salary and Conditions: Regularly review salaries to ensure they meet or exceed the current TSMIT and AMSR. Conditions of employment must be no less favorable than those offered to Australian workers.
• Accurate Record-Keeping: Maintain comprehensive records related to the visa holder's employment, salary, and compliance with SAF and TSMIT requirements.

Conclusion: The Benefits of Subclass 186

Successfully navigating the 186 visa conditions and achieving permanent residency provides skilled migrants with stability and a direct pathway to a future in Australia. Beyond indefinite stay, holding a Subclass 186 visa grants significant benefits, including access to Medicare (Australia’s public healthcare system), the ability to sponsor eligible relatives, and the pathway to Australian citizenship.

For further details on 186 visa conditions and requirements, consult the official resources provided by the Department of Home Affairs (DHA).

Helpful Resources:

• Official Department of Home Affairs Subclass 186 Visa Information
• Department of Home Affairs - Employer Obligations
• Fair Work Ombudsman (Workplace Rights and Entitlements)

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