Getting permanent residency in Australia through an employer can seem complicated because there are several separate steps involving the employer, the nominated position, and the worker. One of the most important parts of this process is understanding how employer nomination actually works and why the nomination must be approved before, or in some cases alongside, the visa application.
The subclass 186 visa is an Australian permanent work visa under the Employer Nomination Scheme. It allows an approved Australian employer to nominate a skilled worker for permanent residence. Unlike a temporary sponsored visa, this pathway is designed to lead directly to permanent residence when the applicant and employer satisfy the relevant requirements. The nomination is therefore not simply a letter from an employer saying that they want to hire someone. It is a formal application made to the Department of Home Affairs that establishes that the business has a genuine skilled position and that the proposed employment meets the applicable requirements.
Understanding the nomination process is important because a strong visa application cannot fix a weak or unsuitable nomination. The employer must first make sure the position, salary, occupation, business circumstances, and employment arrangements meet the rules. The worker must then demonstrate that they personally meet the requirements of the relevant stream. In this guide, I will explain how the process works, what the employer needs to do, what the applicant needs to provide, and where applications commonly go wrong.
What Is the Subclass 186 Visa?
The Employer Nomination Scheme, commonly known as ENS, is a permanent employer-sponsored visa program. The Australian Department of Home Affairs lists the Employer Nomination Scheme as a permanent work visa, and it does not have the regional geographical restriction that applies to certain regional sponsored programs.
The basic idea is straightforward. An Australian employer has a skilled position that needs to be filled by an overseas worker or an existing temporary skilled worker. The employer nominates the position and the person. The worker then applies for the permanent visa and must satisfy the personal visa requirements.
The process is therefore built around two connected applications:
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The employer's nomination application.
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The worker's visa application.
These are related, but they are not the same thing.
A nomination approval does not automatically mean the visa will be granted. The Department can assess the employer and position separately from the applicant's qualifications, English, health, character, skills and other visa requirements.
Who Can Nominate a Worker?
Generally, the nomination comes from an Australian business that is eligible to nominate the position and worker under the relevant ENS requirements.
The employer needs to demonstrate that the nominated position is genuine and that the proposed employment meets the applicable requirements. Depending on the circumstances, the business may need to meet sponsorship obligations, salary requirements, labour market testing requirements, and other nomination conditions.
The Department explains that employers use the nomination process to identify a position that needs to be filled by an overseas skilled worker. Employers may need to be an approved sponsor or have an appropriate labour agreement, depending on the visa type, stream and occupation.
This is why the employer's role is much more important than simply providing an employment contract.
The Two Main Streams
The ENS program has different pathways, with the two commonly discussed pathways being the Temporary Residence Transition stream and the Direct Entry stream.
Choosing the correct stream is one of the first major decisions in the process.
Temporary Residence Transition Stream
The Temporary Residence Transition, often shortened to TRT, is designed for eligible temporary skilled visa holders whose employer wants to nominate them for permanent residence.
The current rules allow the TRT stream to provide a permanent pathway for Skills in Demand visa holders in all occupations, subject to the applicable criteria.
This pathway is often attractive to people who have already been working in Australia for their sponsoring employer.
The applicant's previous temporary skilled employment can be particularly important because the TRT requirements are connected to the applicant's temporary skilled visa history and nominated occupation.
Another important point is that the TRT stream does not use an occupation list in the same way as the Direct Entry stream. The Department states that occupation eligibility for the TRT stream is based on the occupation from the applicant's most recently held temporary skilled visa.
Direct Entry Stream
The Direct Entry stream is generally aimed at applicants who are not using the temporary residence transition pathway.
It can be suitable for a skilled worker who has the required skills and experience and has an employer willing to nominate them directly for permanent residence.
Direct Entry applicants generally need a suitable skills assessment unless they fall within an applicable exemption. They must also meet any relevant registration or licensing requirements for their occupation.
The nominated occupation also needs to satisfy the applicable occupation rules. The current skilled occupation framework identifies eligible occupations and assessing authorities, with the subclass 186 program using the ANZSCO 2022 framework for relevant occupations.
Step 1: The Employer Identifies the Position
The nomination process starts with the job, not the visa applicant.
The employer needs to establish what position genuinely needs to be filled. This means looking at the actual duties, responsibilities, skill level and business need rather than simply choosing an occupation title because it appears on a list.
This distinction matters.
For example, a business might advertise someone as an "IT Manager", but if the actual duties are mainly basic technical support, the position may not genuinely correspond to the selected occupation.
The Department's occupation information explains that ANZSCO codes describe occupations, skill levels, qualifications and experience requirements. The duties of the actual position therefore need to make sense when compared with the nominated occupation.
Step 2: Check Occupation Eligibility
The employer and applicant should check whether the occupation is eligible under the particular stream.
For Direct Entry, the relevant occupation list is especially important. The Department publishes the applicable skilled occupation information and legislative instruments for subclass 186 occupations.
The occupation should not be selected based solely on a job title.
The actual duties are critical.
If the applicant's experience, qualifications and employment duties do not reasonably match the nominated occupation, the application can become difficult even if the occupation itself appears to be eligible.
This is one of those areas where careful preparation is usually better than trying to explain a mismatch after the application has already been lodged.
Step 3: Check the Employer's Eligibility
The business also has to qualify.
The Department's employer guidance explains that businesses can use ImmiAccount to apply to become an approved sponsor, nominate a position and nominate the person they wish to employ.
Depending on the circumstances, the employer may already have the required sponsorship status or may need to meet relevant sponsorship requirements.
The business must also show that it is genuinely operating and that the position is a legitimate role within the business.
A company cannot simply create a position on paper for migration purposes without demonstrating the underlying employment arrangement.
Step 4: Labour Market Testing
Labour market testing can be an important part of the nomination process where it is required.
In simple terms, labour market testing involves the employer advertising the position in Australia to demonstrate that the business has tested the local labour market before sponsoring an overseas worker.
The Department currently describes labour market testing as advertising the position in Australia for at least four weeks in at least two advertisements, unless an exemption applies.
The exact evidence and exemptions depend on the circumstances.
This is why employers should keep copies of advertisements, dates, platforms and other supporting records rather than assuming they can recreate everything later.
Step 5: Meet Salary Requirements
Salary is another major part of nomination.
The employer needs to show that the proposed salary meets the relevant requirements and that the employment conditions are appropriate.
The salary should be commercially realistic for the nominated occupation and position. It should not simply be chosen to reach a particular migration threshold without considering the actual market value and employment arrangement.
The Department specifically identifies salary requirements as one of the matters employers need to check before submitting a nomination.
This is especially important because immigration rules and salary thresholds can change.
Applicants should therefore avoid relying on an old blog post or an outdated salary figure when preparing a current application.
Step 6: Employer Lodges the Nomination
Once the employer has prepared the required evidence, the nomination is lodged through the appropriate Department of Home Affairs process.
The employer generally provides information about:
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The business
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The nominated position
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The occupation
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Salary and employment conditions
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Recruitment or labour market testing evidence where required
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The proposed employee
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Other supporting information relevant to the nomination
The Department assesses whether the nomination satisfies the applicable rules.
At this stage, the focus is primarily on the employer and the position.
That is an important distinction.
The Department is not simply asking, "Is this person a good worker?" It is asking whether the business is legitimately nominating an eligible position under the migration program and whether the proposed employment arrangement meets the requirements.
Step 7: The Applicant Prepares the Visa Application
The worker then needs to prepare their own visa application.
This is where the applicant must demonstrate that they satisfy the personal requirements for the relevant stream.
Depending on the pathway and individual circumstances, evidence can include identity documents, employment records, qualifications, skills assessment evidence, English-language evidence, registration or licensing evidence, police certificates, health information and evidence relating to family members.
The documents required can vary, so applicants should use the current Department requirements rather than relying on another person's document checklist.
How the Nomination and Visa Application Connect
One common misunderstanding is that nomination approval equals visa approval.
It does not.
Think of the process as two connected questions.
The first question is:
"Is this employer allowed to nominate this position and worker under the applicable program?"
The second question is:
"Does this applicant personally qualify for the permanent visa?"
Both need to be satisfied.
An employer can have a legitimate position, but the applicant may fail to satisfy a personal visa requirement.
Likewise, an applicant may be highly skilled but have an employer nomination that does not meet the relevant requirements.
That is why both sides need to prepare carefully.
What Happens After Nomination Approval?
If the nomination is approved, the applicant's visa application can proceed through the relevant assessment process.
The Department may assess the visa application and request additional information if necessary.
Applicants should monitor their ImmiAccount and respond to requests within the specified timeframe.
They should also avoid making assumptions based on the fact that someone else with a similar occupation received approval quickly. Processing depends on the application, evidence, priority settings and other circumstances.
The Department confirms that subclass 186 is covered by the skilled visa processing priority framework, so applicants should check current Department guidance rather than relying on historical processing expectations.
What If the Employer Uses a Labour Agreement?
Some employers operate under labour agreements.
Labour agreements can allow approved businesses to sponsor skilled overseas workers where there is a demonstrated need that cannot be met through the Australian labour market and where standard visa programs may not provide an appropriate option.
Certain labour agreements can provide a pathway through the Employer Nomination Scheme.
However, labour agreement cases can involve different conditions or concessions. The applicable agreement determines what is available.
This means applicants should not assume that the standard subclass 186 rules apply in exactly the same way to every labour agreement nomination.
Common Reasons Nomination Problems Occur
The Job Does Not Match the Occupation
This is one of the biggest practical issues.
If the job description does not reflect the nominated occupation, the nomination can become difficult to justify.
The employer should describe the actual position honestly and accurately.
Salary Evidence Is Weak
A salary figure without supporting context may create questions.
Employers should ensure that the employment contract, salary information and other evidence tell the same story.
Labour Market Testing Was Not Done Correctly
Where labour market testing is required, missing advertisements or incorrect advertising periods can create problems.
Employers should keep evidence from the beginning instead of treating documentation as an afterthought.
The Business Case Is Weak
The Department needs to see a genuine position.
A business that cannot explain why the role exists, what the worker will do, and how the position fits into the business may face additional scrutiny.
Applicant Documents Do Not Match the Nomination
The applicant's CV, reference letters, employment history and qualifications should be consistent with the nominated occupation.
If one document describes a person as a manager while another shows mostly unrelated duties, questions can arise.
Can an Employer Nominate Someone Already in Australia?
Yes, depending on the applicant's visa status and circumstances.
An employer can nominate a worker who is already in Australia, but the applicant must also have the appropriate visa conditions and satisfy the requirements for making the visa application in Australia where applicable.
Employers should check the worker's current visa conditions through VEVO before making employment decisions. The Department specifically advises employers to check whether a visa holder can work and whether their visa contains work restrictions.
Does the Subclass 186 Visa Give Permanent Residence?
Yes.
The Employer Nomination Scheme is a permanent visa pathway. The Department describes subclass 186 as a permanent visa and includes it among Australia's permanent work visas.
That is one reason the nomination process is taken seriously.
The employer is not merely sponsoring someone for a short temporary assignment. The nomination supports a pathway to permanent residence, subject to the applicant satisfying the visa requirements.
Is There a Regional Requirement?
The subclass 186 visa is not a regional-only visa.
The Department's comparison of sponsored skilled visas states that the subclass 186 has no geographical restrictions, unlike regional sponsored options such as subclass 494.
This can make the pathway attractive to workers who want to live and work in metropolitan areas as well as other parts of Australia.
However, the location of the employer and the type of nomination can still matter when assessing the specific requirements, particularly where a labour agreement or another special arrangement is involved.
How Long Does the Process Take?
There is no single processing time that applies to every application.
Processing can depend on the stream, completeness of documentation, priority settings, health and character checks, requests for additional information, nomination circumstances and the Department's workload.
The best approach is to check the current Department of Home Affairs processing information at the time of application.
Applicants should also understand that nomination processing and visa processing are separate stages. A delay in one stage does not necessarily mean that something is wrong with the application.
A Simple Example of the Process
Imagine an Australian company needs an experienced software professional for a permanent position.
The business first identifies the genuine position and determines the appropriate occupation.
It checks the applicable occupation requirements and salary arrangements.
If labour market testing is required, it completes the required advertising and keeps evidence.
The employer then prepares and lodges the nomination.
The worker prepares the visa application with evidence of identity, employment history, qualifications, English, skills assessment where required, health and character matters, and other supporting documents.
The Department assesses both sides of the process.
If the nomination and visa requirements are satisfied, the applicant can be granted the permanent visa.
This example shows why the process is not simply "find an employer and get nominated." The position, business and applicant all have to line up properly.
Practical Tips for a Stronger Nomination
Start with the occupation rather than the visa label.
Look at the actual duties and determine which occupation genuinely reflects the position.
Keep employment documents consistent.
Job descriptions, contracts, reference letters and CVs should not contradict one another.
Keep evidence organised from the beginning.
Employers should retain advertising records, salary documents and business evidence where relevant.
Applicants should maintain employment records, payslips, tax documents, contracts and reference letters.
Check current rules before lodging.
Migration rules change. The Department's occupation list, legislative instruments and visa requirements should be checked against the date of application. The Department currently identifies LIN 24/093 as the legislative instrument for occupations and assessing authorities for subclass 186.
Do not assume that a friend's pathway will be identical.
Two workers with similar jobs can have completely different requirements because they may be using different streams or have different visa histories.
Conclusion
The nomination process is the foundation of an employer-sponsored permanent residence application through the Employer Nomination Scheme. The subclass 186 visa connects an eligible Australian employer, a genuine skilled position and a worker who satisfies the relevant visa requirements.
The employer generally needs to establish that the position is genuine, the occupation is appropriate, salary and employment conditions meet the applicable rules, and any required labour market testing or sponsorship requirements have been satisfied. The applicant then needs to demonstrate that they personally meet the requirements of the relevant stream.
The most important point is that nomination and visa approval are not the same thing. A successful nomination supports the visa application, but the applicant must still satisfy the visa criteria.
The TRT pathway can be particularly relevant to eligible temporary skilled workers who have already been employed in Australia, while Direct Entry can provide a route for eligible skilled workers who qualify without relying on the same temporary residence history. Occupation eligibility also needs careful attention because the rules differ between streams.
In my experience, the safest way to approach an employer-sponsored application is to build the case around the genuine job first, then make sure the employer evidence and applicant evidence consistently support that position. Immigration applications become much easier to understand when every document tells the same story.
Because Australian migration rules can change, applicants should always verify the current requirements with the Department of Home Affairs before lodging. A well-prepared application is not about submitting the largest possible pile of documents. It is about providing the right evidence, in a consistent way, to show that the employer, position and applicant all satisfy the applicable rules.

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