186 Visa Direct Entry Stream: A Step-by-Step Guide to Australian PR

186 Visa Direct Entry Stream: A Step-by-Step Guide to Australian PR

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If your dream is to live, work and build a future in Australia permanently, the Subclass 186 Employer Nomination Scheme (ENS) – Direct Entry stream may be one of the strongest pathways to Permanent Residency (PR).

The 186 Direct Entry visa is a permanent visa, meaning it allows you to live, work and study in Australia indefinitely. Once granted, you can also access many of the benefits that come with PR, including the ability to travel in and out of Australia freely (within your travel facility period), and most importantly you can include eligible dependent family members such as your spouse and children in your application.

So how do you actually get this visa approved? Let’s break it down step-by-step in a practical way.

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Step 1: You Need an Employer to Sponsor You

The first requirement is that you must have an Australian employer willing to sponsor you for a full-time position. This is where many applicants get confused.

A common myth is that the employer must already be an approved Standard Business Sponsor (SBS) to nominate someone. That is not true for the 186 Direct Entry stream.

Unlike the 482 visa, the employer does not need to be a registered business sponsor before sponsoring you. Instead, they simply need to submit a nomination application for the position they are offering you, and prove that the role is genuine and meets the program requirements.

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Step 2: Your Occupation Must Be Eligible

The employer can only nominate you if the position falls under an occupation that is listed on the Core Skills Occupation List (CSOL).

This list is critical because it determines whether the Department of Home Affairs will accept the occupation for the 186 program.

On top of that, the nominated role must match the correct ANZSCO occupation, meaning your job duties must align with what the Department expects for that occupation code.

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Step 3: Skills, Experience, and a Skills Assessment

The 186 Direct Entry stream is a highly structured visa, and the applicant must meet strict skill requirements. In most cases, you must show:

✅Relevant qualifications, and
✅At least 3 years of post-qualification work experience, and
✅A positive full skills assessment in your nominated occupation.

For many occupations, you can use work experience instead of qualifications, but this is where people need to be extremely careful.

Some ANZSCO occupations allow experience to substitute formal study for example, if you don’t have the required bachelor degree, you may need five years of work experience instead.

But here’s the important part: the three years of required experience for the186 Direct Entry stream is generally in addition to any “substitution” experience.

So using the example of a Software Engineer:
• If the ANZSCO benchmark suggests 5 years of experience in lieu of a degree, and
• You also need 3 years post-qualification equivalent experience,
then you may require 8 years total experience overall to meet the threshold.

This is why a proper assessment of your background is essential before lodging.

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Employer Documents: Proving the Position Is Genuine
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Once the employer is ready to nominate you, the main focus becomes proving that the nominated role is real, necessary, and aligned with the business. The Department places huge emphasis on genuine position.

To demonstrate this, the employer needs to provide strong evidence about the business itself, including how the role fits within its structure and operations.

Common documents we request from employers include:
• ASIC records and ABN registration
• Financial statements
• Tax returns
• Business Activity Statements (BAS)
• A detailed position description
• Organisational chart showing the team structure
• Lease agreement (or proof of premises)
• Invoices and supplier contracts to show ongoing operations
• Any supporting business plan, especially for newer businesses

The stronger and more consistent the evidence, the easier it is to show that the position is genuine and sustainable long-term.

Labour Market Testing: Not Required, but Helpful

Unlike some other employer-sponsored visas, there is no mandatory labour markettesting (LMT) requirement for the 186 Direct Entry stream.

However, even though it’s not required, it can still be helpful forstrengthening the overall case especially where the occupation is niche, thebusiness is small, or the role might raise questions.

Advertising evidence can support the employer’s argument that they genuinelyneeded to recruit for the role.

Market Salary Requirement: Minimum vs Market Rate

Another key requirement is salary. The employer must pay you at least the minimum salary threshold, which is $76,515.

But hitting that number alone is not enough. The Department also requires that you are paid the market salary rate for your occupation and location.

This means the salary must reflect what an Australian worker would earn in the same role.

For example, if you’re a Software Engineer with 3+ years of experience, your market salary may be significantly higher than $76,515. If the employer offers only the minimum, the Department may question whether the role is genuine or whether the terms are below standard.

That is why we recommend conducting market salary research, using evidence such as:
• job ads for similar roles
• industry salary guides
• benchmarking sites
• internal salary structures (if applicable)

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Employment Contract Requirement

The employer must provide you with a formal employment contract, and it must clearly show that the role is:
✅full-time, and
✅ongoing, and
✅available for at least two years from the date the visa is granted (or permanent employment).

The contract should be dated correctly and consistent with the nomination details, including job title, duties, salary, and location.

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Visa Applicant Documents: What You Must Provide

Once the nomination is lodged, the visa application can be lodged (depending on eligibility and timing).

The applicant must provide key documents such as:
• qualifications and transcripts
• evidence of at least 3 years full-time work experience
• payslips, tax documents, bank statements, employment references
• a positive full skills assessment
• English test results (unless exempt)
• health examinations
• police clearances and character documents
• family and relationship documents (if including dependents)

It’s a document-heavy visa, so preparation is everything.

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Processing Times: A Waiting Game

Processing times for the 186 Direct Entry stream can vary widely depending on the occupation, the quality of evidence, and Department workload.

Some cases can be finalised in as little as 3 months, while others can take upto 30 months. We’ve seen both ends of the spectrum—so patience is definitelypart of the process.

Do You Need to Work for the Employer While Waiting?

You do not need to be working for the sponsor while the visa is being processed.

However, if you are able to work with the employer during the processing period, it may help support the argument that the role is genuine and ongoing.

For example, if the nominated role is for a Software Engineer, the Departmentmay expect the business to be an IT company or a large organisation with afunctioning IT team. If the employer is a small business with no IT staff, itmay raise questions and require stronger evidence to justify why the roleexists.

Every case is different, and the genuine position assessment is always done on a case-by-case basis.

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Final Thoughts

The 186 Direct Entry visa is one of the most valuable pathways to Australian PR, but it requires careful planning, strong evidence, and a nomination that makes sense commercially and operationally.

With the right occupation, a supportive employer, a solid skills assessment, and genuine business documentation, this visa can be a life-changing outcome for you and your family.

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Want to know more about the 186 visa? Our Principal Lawyer, Traci Chen, breaks it all down in this video.

Struggling with 186 Visa Requirements? Let Our Lawyers Handle the Application Process

Moving from temporary work to permanent residency involves meeting strict regulatory hurdles. Whether you are a skilled worker seeking Direct Entry or an employer looking to nominate a key staff member, the 186 visa requires a meticulous approach to evidence and compliance.

From verifying "Genuine Need" to ensuring salary and skill requirements meet current Department standards, we provide the expertise needed for a seamless transition to PR. Our legal team is committed to taking the stress out of the sponsorship process.

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This page was last updated on 23 January 2026.