The Employer Nomination Scheme (ENS) Subclass 186 is a permanent residence visa for skilled workers who are nominated by an approved Australian employer. It is one of the primary pathways to permanent residency for employer-sponsored workers in Australia.

There are two main streams under the Subclass 186:

• Transition Stream — for workers already in Australia on a Temporary Skill Shortage (TSS) Subclass 482 or previous 457 visa.
• Direct Entry Stream — for skilled workers applying from overseas or those in Australia who do not meet the Transition Stream criteria.

Both streams lead to the same outcome — permanent residency — but the eligibility requirements and evidence required differ significantly.

The Transition Stream is designed for workers who have already been working in Australia under employer sponsorship and are now ready to make the move to permanent residency. To be eligible, you must meet the following criteria:

• Hold or have held a Subclass 482 (TSS) visa in the Medium-term stream, or a Subclass 457 visa.
• Have worked for your nominating employer (or a related company) for at least 3 years in your nominated occupation on a full-time basis.
• Be nominated by the same employer (or associated entity) for the same occupation in which you have been working.
• Meet the skills, qualifications, and English language requirements for your nominated occupation.
• Be under 45 years of age at the time of application, unless an exemption applies.

The Transition Stream does not require a skills assessment from an assessing authority in most cases — your work history with the sponsoring employer serves as the primary evidence of your skills.

The Direct Entry Stream is available to skilled workers who have not previously held a Subclass 482 or 457 visa, or who do not meet the work experience requirements of the Transition Stream. This stream is commonly used by:

• Overseas workers being sponsored by an Australian employer to move to Australia permanently.
• Workers already in Australia on a different visa subclass who have a qualifying employer willing to nominate them.
• Former 457 holders who did not work the required 3 years under sponsorship before their visa expired.

The Direct Entry Stream requires a formal skills assessment from the relevant assessing authority for your occupation. You must also demonstrate that your skills and qualifications are recognised and at the level required by your nominated occupation on the relevant skilled occupation list.

While both streams lead to permanent residency, there are important practical differences that affect your preparation and timeline:

• Skills assessment: Required for Direct Entry; generally not required for Transition Stream applicants.
• Work experience: Transition Stream requires 3 years with the nominating employer; Direct Entry has no such requirement but may require evidence of relevant work history.
• Visa history: Transition Stream requires a current or previous 482/457 visa; Direct Entry does not.
• Age limit: Both streams have a 45-year age cap at time of application, with limited exemptions available for certain occupations or long-term residents.
• English language: Both streams require competent English — typically an IELTS score of 6 in each band, or an equivalent test result.

Regardless of which stream applies to you, your employer plays a central role in the process. Before you can lodge your visa application, your employer must:

• Be an approved Standard Business Sponsor — or apply to become one before lodging the nomination.
• Lodge a nomination application with the Department of Home Affairs, specifying the occupation, business location, and employment conditions.
• Demonstrate that the position is genuine and that the salary offered meets the Annual Market Salary Rate (AMSR) — you cannot be paid less than an equivalent Australian worker in the same role.
• Pay the Skilling Australians Fund (SAF) levy — the amount varies depending on the size of the business and the duration of the nomination.

The nomination must be approved before your visa application can be finalised. Both applications can be lodged at the same time, but the visa cannot be granted until the nomination is approved.

Determining which stream applies to you depends on your visa history, how long you have worked for your current employer, and your occupation. As a general guide:

• Choose Transition Stream if you hold or previously held a Subclass 482 Medium-term or 457 visa and have worked for your sponsoring employer for at least 3 years in the same role.
• Choose Direct Entry Stream if you are applying from overseas, are on a different visa, or have not met the 3-year work requirement with your employer.
• Check your occupation is on the relevant skilled occupation list — this applies to both streams and is one of the most common reasons applications are delayed or refused.
• Consider your age — if you are approaching 45, timing your application carefully is critical, as the age cap is assessed at the date of application lodgement.

If you are unsure which stream applies to your situation, getting professional advice before lodging is strongly recommended. Applying under the wrong stream — or missing a key eligibility requirement — can result in refusal and significant delays to your permanent residency journey.