Subclass 186 Visa (Employer Nominated Scheme): Employer Requirements and Obligations

Australia’s skilled migration program continues to respond to demand for overseas talent. In 2024, approximately 49,000 temporary skilled visa holders arrived, highlighting ongoing recruitment needs. The Employer Nomination Scheme (ENS) Subclass 186 visa is one option that enables eligible employers to nominate skilled overseas workers for permanent residence.

Also known as the Employer Nomination Scheme (ENS) visa, the Subclass 186 visa enables highly skilled workers to live and work in Australia, and allows employers to sponsor them. However, this process requires careful planning, not only for visa applicants but also for employers who wish to recruit them. This blog offers key insights into the 186 visa checklist for employers, from its eligibility criteria to common mistakes employers must avoid for a seamless nomination. Read on to gain a clear picture of what these entail.

Subclass 186 Visa Requirements & Checklist (2026)

The applicants for the Subclass 186 Employer Nomination Scheme visa must have sponsorship from eligible Australian employers. The specific eligibility criteria that both employers and applicants must satisfy before a visa can be granted are as follows:

• Applicants must be nominated by an approved Australian employer.
• At the time of application lodgement, applicants must be under 45 years of age.
• A positive skills assessment for the nominated occupation (mainly for Direct Entry) must be attached.
• Applicants must have attained at least 3 years of relevant work experience.
• Health exams and police clearances must also be submitted with the application.
• Applicants must also meet the minimum income threshold of $79,499 for the Core Skills stream and $146,717 for the Specialist Skills stream.

Applicants should prepare:

• Passport and identity (eg., birth certificate) documents
• Skills assessment (if required)
• References from the employer
• English language test results (e.g., IELTS 6.0 in all components)
• Qualifications and licences
• Health and police clearance documents

Employers should ensure:

• The business is actively and lawfully operating
• The nominated occupation is eligible
• Salary meets current income thresholds
• Nomination documents are complete and accurate

Based on the success of recent applications, applicants for the 186 visa must:

• Prioritise genuine, full-time positions nominated for by accredited employers
• Aim for compliant salary structures
• Prepare decision-ready applications

Accurate documentation and early preparation remain essential to avoid nomination delays or refusal.

Understanding the subclass 186 Visa for Employers

The Employer Nomination Scheme visa allows eligible Australian employers to nominate skilled workers for migration and employment within their organisations. As per the rules set by the Australian government, employers can nominate workers for roles listed on the Department of Home Affairs' Skilled Occupations List. Primarily, this visa enables employers to retain their skilled workers who are currently on a temporary visa, allowing them to reside in Australia permanently.

This arrangement enables employers to retain skilled staff and nominate them for permanent residency, provided the eligibility criteria are met. In some cases, permanent residents may later apply for citizenship if all legal criteria are satisfied.

Currently, there are three pathways for applicants to migrate via the 186 visa. While all three require applicants to present competent English language proficiency and meet the Department's health and character requirements, they differ in certain areas. Here is a detailed breakdown:

• Direct Entry Stream: The Direct Entry Stream is generally for visa applicants who possess the required skills, have at least three years of work experience, and are nominated by an approved Australian employer. This stream also requires applicants to present a positive skills assessment by a relevant assessing authority.
• Labour Agreement Stream: This stream is for employers who wish to employ workers in nominated occupations under a relevant labour agreement with the Australian government.
• Temporary Residence Transition Stream: The temporary residence pathway is for applicants on a Skills in Demand (SID) Visa (Subclass 482) or a related bridging visa. Such applicants, who have at least two years of full-time work experience in an eligible sponsored occupation and are now being nominated, can use this stream to move for permanent residence.

Employer Eligibility Criteria for the 186 Visa

Similar to how applicants must meet the eligibility criteria for their visa application, the nominating employer must be eligible to lodge their nomination with the Department of Home Affairs. Below, we have listed the criteria that determine if an employer is eligible to nominate:

• Active and Lawfully Operating Business: The employer must have an active business that lawfully operates in Australia, with evidence of active operations and compliance with regulatory requirements.
• Genuine Need for the Position: Next, the employer must also demonstrate a genuine requirement for the nominated position. The position must provide full-time employment for at least two years following the visa grant date, in accordance with the annual market salary rate standards.
• Approved Standard Business Sponsor (If Applicable): If an employer wants to nominate applicants with a Subclass 482 (Skills in Demand) or 494 (Skilled Employer Sponsored Regional) visa, they must be an approved standard business sponsor. This simply means that the Department has granted the employer the ability to sponsor workers, after thorough evaluation.
• Compliance with Employment Laws: The employer must be compliant with Australia's employment laws. This means they must comply with workplace relations laws, employment standards, safety regulations, and other applicable regulations. Additionally, the employment contract must adhere to the guidelines by Fair Work Australia, ensuring sufficient leave policies, safe working conditions, and a commitment to workplace diversity and equality.

Subclass 186 Visa Employer Nomination Checklist Recent Update 2026

The Subclass 186 nomination process involves several steps that employers must complete accurately to meet specific sponsorship, compliance, and documentation requirements before nominating a skilled worker for permanent residency. Here's a checklist for the 186 visa nomination in Australia:

Documentation Checklist

The process begins with gathering all the necessary documents. As a sponsoring employer, you must prepare, review, and present the following documents before lodging a nomination application:

• Documentation related to business operations, such as business registration
• Evidence of compliance with employment laws
• Employment contracts and position descriptions
• Financial records demonstrating the ability to pay the nominated salary
• Labour marketing testing (LMT) to confirm the inability to hire required talent locally
• Proof that the nominated salary meets the current Core Skills Income Threshold (CSIT) and Annual Market Salary Rate requirements

If required, ensure that the current standard business sponsorship approval documentation is available and up to date.

Nomination Steps

The next step in the 186 visa nomination is the nomination itself. Employers must take the following steps to nominate workers:

• Confirm the worker's eligibility; depending on the visa stream, they must have the required work experience, skills, qualifications, documents, and a valid visa.
• Check that the worker meets skills, English, work experience, and visa eligibility requirements.
• Ensure the nominated position is genuine, full-time, and available for at least two years.
• Next, lodge your nomination with the Department through your ImmiAccount. Ensure all your supporting documents are accurate, relevant, and updated to avoid unnecessary delays.
• Once the application is complete, pay the required nomination fee and the applicable Skilling Australians Fund (SAF) levy to submit it on ImmiAccount. It is recommended to monitor ImmiAccount notifications, as the Department often requests further information during evaluation, and receiving notifications immediately is key to avoiding processing delays.
• After submission, you must await the Department's decision. Upon approval, you will receive a nomination valid for six months. If not, the Department will share the reasons for refusal.

The applicant's visa application can only proceed after nomination approval, so it is vital to follow this checklist thoroughly.

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Key Employer Obligations Under the 186 Visa

According to the rules for the Subclass 186 visa, sponsoring employers are required to fulfil certain sponsorship, workplace, and immigration obligations. These include:

Paying Market Salary and Maintaining Fair Employment Conditions

One of the most essential responsibilities of a 186 visa employer is to ensure fair pay and employment conditions.

• They must pay the sponsored employee in accordance with the annual market salary rate standards for their role.
• They must offer full-time employment in a genuine position for a minimum duration of two years.
• Their obligation also includes paying the Skilling Australians Fund (SAF) levy, a one-time payment for nominating workers for this permanent visa. The SAF levy helps to support workplace training for migrating workers and is a mandatory obligation for nominated occupations.

Note: Sponsoring employers must ensure the salary they offer meets or exceeds the Core Skills Income Threshold (CSIT) applicable at the time of nomination. As of 2026, the CSIT for this visa is AUD 76,515; employers must be financially capable of paying it for at least two years.

Maintaining Ongoing Compliance with Visa Conditions

Ongoing compliance is a significant part of the employer obligations for the 186 visa in Australia. As a sponsor, you must:

• Follow the regulations for the visa stream through which you are nominating and the conditions set by the Department.
• Ensure Direct Entry stream applicants have a valid skills assessment
• Your business must be party to a relevant agreement to nominate workers (in compliance with applicable labour agreement conditions)
• Cooperate with the Department of Home Affairs monitoring or compliance checks

Informing the Department of Home Affairs of Any Changes

Employers must notify the Department of Home Affairs of any business or employment changes that may affect the nomination.

The Department must be informed of any changes to your:

• Business address or contact details
• Taxation details
• Financial capability (to adhere to the CSIT),
• Business ownership or trading name
• Nominated employee’s position or duties

Timely coordination is critical for avoiding nomination hassles and preventing delays. If there are any important changes that can affect your nomination, you are obligated to notify the Department.

Fulfilling Record-Keeping Obligations

When sponsoring workers, employers must maintain a record of all relevant documents, such as employment contracts, salary slips, tax documents, SAF levy payment receipts, and visa-related correspondence and nomination records, for the visa holder's salary, visa requirements, Australian immigration details, employment contracts, and SAF and CSIT compliance.

Upholding Workplace Rights and Non-Discriminatory Practices

Maintaining a safe work environment that prioritises equality, diversity, and mental well-being is also compulsory for sponsoring employers. Employers must:

• Provide safe and lawful working conditions to sponsored workers
• Comply with anti-discrimination and workplace equality laws to ensure their organisation is not unfavourable to sponsored workers
• Ensure that sponsored employees are not treated less than Australian citizens or permanent residents in similar positions
• Maintain a respectful and inclusive workplace environment for all

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Book a Consultation‍

If you are interested in getting more information about a visa, get in touch with Australian Migration Agents for a consultation.

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Benefits of Subclass 186 Visa (Permanent Residency)

The Subclass 186 Employer Nomination Scheme visa has numerous long-term benefits for both nominated overseas workers and Australian employers. As a permanent residency visa, it gives eligible employees the opportunity to live and work in Australia permanently while helping local businesses fill skill gaps in critical roles with a stable workforce.

For Employees

• The Subclass 186 visa allows skilled overseas workers to live, work, and study anywhere in Australia indefinitely, since they become permanent residents immediately upon visa grant.
• Visa holders can access Australia's public healthcare system (Medicare), sponsor their family members, and travel freely in and out of Australia for a specified period.
• Unlike other visas, the 186 visa does not require regular renewals.
• Permanent residency may also provide a pathway to Australian citizenship after four years if eligibility requirements are met.

For Employers

• The Subclass 186 visa provides employers with an opportunity to retain experienced skilled workers on a long-term basis.
• Permanent residency allows employees to remain in their positions, which reduces staff turnover and strengthens workforce planning.
• The visa also allows businesses to fill critical skill shortages where suitably qualified Australian workers may not be available.
• Employers can directly nominate employees through the TRT stream after just two years of employment, which strengthens the employer-employee relationship and cuts turnover costs.

Common Mistakes Employers Make When Sponsoring for a 186 Visa

Understanding the various Employer Nomination Scheme 186 obligations is vital, as is recognising the mistakes nominators often make. Here are some common mistakes to avoid:

• Not Checking Applicant Eligibility: Sponsors often skip thoroughly checking the applicant's eligibility. Besides checking their skills and work experience, you must also look into their past visa history, including whether they have had any visas cancelled or refused. Additionally, verify if they hold a valid skills assessment (for DE stream) and if they hold the correct bridging visa.
• Not Updating the Department: There can always be sudden changes in the business, such as adjustments to the trading name, fluctuations in income, or changes in location, among others. However, if you have already lodged the nomination, not notifying the Department will delay the process, as additional information may be requested.
• Not Ensuring Position Genuineness: The Department expects your nomination to be for a position for which you genuinely require it. Nominating a position without demonstrating a genuine need or without the ability to comply with all employment and salary requirements is a frequent basis for refusal.
• Not Applying for Standard Business Sponsorship: Even if you have a lawful and active business, you cannot be automatically eligible to nominate. Hence, if required, first apply to become a standard business sponsor, and upon the Department's approval, proceed with your nomination.

Ensuring Compliance and Avoiding Penalties

Maintaining compliance is integral for the Employer Nomination Scheme Subclass 186 visa. Failing to adhere to obligations can result in serious penalties, including refusal of nomination. Here is how employers can ensure compliance:

Importance of Accurate Information

Every detail you provide, such as your business trade name or LMT paperwork, must be accurate. Inaccuracy in supporting information can raise significant concerns, often leading to processing delays or potential refusals.

Regular Review of Sponsor Obligations

Compliance with your employer nomination requirements ensures that the worker can continue working in your organisation. Therefore, regularly review items such as CSIT-compliant pay, the visa holder's work conditions, and record maintenance, to avoid penalties or nomination hassles.

Seek Legal or Migration Advice

ENS compliance involves several steps, as already mentioned. Employers are advised to seek guidance from registered migration agents or qualified legal professionals to ensure compliance with nomination requirements and to mitigate the risk of errors that may result in refusal or penalties.

How Migration Agents Can Help Employers

From conducting LMT to paying the SAF levy, employers have to adhere to multiple obligations when nominating. Even with prior nomination experience, it is easy to get lost in the process and miss key steps that can ultimately delay the process or lead to a negative outcome. This is why employers must consider working with professional migration agents.

A registered migration agent simplifies the nomination process through strategic guidance and transparent support. At Australian Migration Agents, our team comprises qualified professionals who provide tailored advice to help you complete your nomination confidently. With decades of combined experience in Australian immigration, our agents have a deep understanding of the 186 visa. They can help you clearly understand the nomination process and the obligations you must follow.

Frequently Asked Questions (FAQs)

Who Can Sponsor an Employee Under the 186 Visa?

An approved Australian employer with a lawful and active business can sponsor employees under the 186 visa.

What Are the Employer’s Key Obligations After 186 Visa Approval?

Once their 186 visa is approved, employers must ensure that the nominated position stays available and genuine, the employment contract adheres to workplace laws, the pay is CSIT and market rate compliant, and that the employee meets the visa stream's requirements.

How Long Must an Employer Employ the Sponsored Worker?

As per the 186 visa rules, employers must employ the sponsored worker for at least two years following the visa grant date.

What Happens If the Sponsored Employee Leaves Early?

If the sponsored employee leaves before the end of their contract or the two-year duration, employers are no longer responsible for their visa. Additionally, they can look for a new worker to nominate, as long as they are eligible.

Can a Small Business Sponsor Under the 186 Visa?

As long as the business is lawful, active, and capable of adhering to the market salary rate, they can sponsor workers under the 186 visa.

How Can Migration Agents Help Employers With 186 Nominations?

Registered migration agents can provide guidance on employer obligations, nomination requirements, eligibility checks, and appropriate communication with the Department of Home Affairs.

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