The Subclass 494 is the employer-sponsored visa most Australian businesses overlook. It offers five years in regional Australia and a genuine permanent residence pathway through the Subclass 191 — but the 494 visa PR pathway also carries traps that regularly cost employers months.
Below, we explain how the 494 visa PR pathway actually works: what the worker must meet, what the employer must do, the ANZSCO version problem nobody warns about, and the persistent myth about the income threshold for the Subclass 191.
What the 494 visa PR pathway actually is
The Skilled Employer Sponsored Regional (Provisional) visa, Subclass 494, lets a skilled worker live, work and study in a designated regional area of Australia for up to five years, while a regional employer sponsors them.
However, “designated regional area” is broader than most employers assume. In fact, it covers everywhere in Australia except Sydney, Melbourne and Brisbane. Perth, Adelaide, the Gold Coast, Newcastle, Wollongong, Hobart, Darwin and Canberra therefore all qualify as regional for this purpose.
LINK: — Department of Home Affairs, Regional postcodes
Three approvals, three chances to fail
A 494 is not one application. Instead, it is three — and the Department can refuse each one on its own:
- Standard Business Sponsorship. First, the employer applies to become an approved sponsor.
- Nomination. Next, the employer nominates the position and obtains advice from the relevant Regional Certifying Body.
- Visa. Finally, the Department assesses the worker against the applicant criteria.
A strong worker does not rescue a weak nomination. Indeed, the most common cause of delay we see arises when an employer treats the nomination as paperwork attached to the visa, rather than as a separate decision carrying its own evidentiary burden.
What the worker must meet
To qualify, the applicant must satisfy each of the following:
- Be under 45 years of age when they apply, unless an exemption applies.
- Hold a positive skills assessment for the nominated occupation.
- Have at least three years of relevant work experience.
- Demonstrate competent English.
- Nominate an occupation that appears on the list applying to the Subclass 494.
- Meet the health and character requirements.
The ANZSCO trap that derails the 494 visa PR pathway
This is the single most useful thing to know about the 494 in 2026.
The Subclass 482 and Subclass 186 moved to ANZSCO 2022 and have the Core Skills Occupation list that applies to it.
The Subclass 494 did not. Instead, it has its own occupation list.
Consequently, an occupation code that works for a 482 nomination can be wrong for a 494.
LINK: internal — Skills in Demand (482) page, anchor “Skills in Demand visa guide”
Salary: two tests, not one
From 1 July 2026, the Temporary Skilled Migration Income Threshold applying to 494 nominations sits at AUD $79,423.
However, meeting the threshold is not enough on its own. The nominated salary must also match the annual market salary rate for the position — in other words, what an equivalent Australian worker doing equivalent work at the same location would earn. Because both tests apply independently, a salary above the threshold but below market rate will still fail.
In addition, the visa application charge for the 494 sits at AUD $6,140 from 1 July 2026, on top of the nomination fee and the additional Skilling Australians Fund levy.
The Regional Certifying Body step employers forget
The nomination generally requires advice from the Regional Certifying Body for the relevant area. Specifically, the RCB addresses whether the position is genuine and full-time, and whether the salary and conditions match the local market.
Importantly, RCBs do not form part of the Department of Home Affairs. They set their own forms, their own fees and their own turnaround times, and the Department does not control those timelines. Therefore, build the RCB step into your project schedule from the outset. Otherwise, it becomes one of the most common causes of avoidable delay on a 494 file.
Condition 8579: live and work regionally
Subclass 494 holders must live, work and study only in a designated regional area. A breach puts the visa at risk of cancellation. Moreover, it puts the permanent stage at risk too, because compliance with the conditions of the provisional visa forms a criterion for the Subclass 191 in its own right.
Where employment ends, the holder has a period in which to find a new regional sponsor. Do not let it lapse quietly. At this point employment law and migration law intersect directly — and a poorly handled termination can compromise a worker’s permanent residence.
The Subclass 191: the end of the 494 visa PR pathway
The permanent stage of the 494 visa PR pathway is the Subclass 191 Permanent Residence (Skilled Regional) visa. To qualify, you must:
- Have held the Subclass 494 (or a Subclass 491) for at least three years.
- Have complied with the conditions of that visa throughout.
- Provide Notices of Assessment that the ATO issued for three income years within the five-year period of the provisional visa.
- Meet the health and character requirements.
The myth worth killing: the $53,900 income threshold
There is currently no minimum income threshold for the Subclass 191. Although the figure of $53,900 still circulates widely on migration websites and forums, it is historic, and the Department has since clarified the position.
What does remain mandatory is the documentary requirement. You must supply ATO Notices of Assessment covering three income years. Payslips, employment letters and accountant statements do not substitute for them. Therefore, if you have not lodged tax returns for the relevant years, lodge them before you apply.
Once the Department grants the 191, the regional obligation ends. After that, the holder can live and work anywhere in Australia.
Frequently asked questions about the 494 visa PR pathway
Does the 494 visa lead to permanent residence?
Yes. After three years holding the Subclass 494 and complying with its conditions, holders can apply for the Subclass 191 Permanent Residence (Skilled Regional) visa.
Is there a minimum income requirement for the Subclass 191?
No. Currently no minimum income threshold applies. However, applicants must still supply ATO Notices of Assessment for three income years within the five-year period of their provisional visa. If however you have worked for an employer on 494 visa, you must have been paid the salary as agreed on your 494 nomination and 494 visa grant.
Which areas count as regional for the 494 visa?
Everywhere in Australia except Sydney, Melbourne and Brisbane. Perth, Adelaide, the Gold Coast, Newcastle, Wollongong, Hobart, Darwin and Canberra all count as designated regional areas.
What is the salary requirement for a 494 nomination in 2026?
From 1 July 2026 the income threshold sits at AUD $79,423. In addition, the nominated salary must match the annual market salary rate for the position. Both tests apply.
What happens if a 494 holder loses their job?
The holder has a period in which to find a new sponsoring regional employer. However, working outside the designated regional area, or failing to secure a new sponsor within the permitted period, puts both the visa and the Subclass 191 pathway at risk. Seek advice immediately.
Can a 494 visa holder include family members?
Yes. You can generally include your partner and dependent children, and partners hold full work rights. Naturally, they must also observe the regional living conditions.
Regional sponsorship on the 494 visa PR pathway, done properly
Tolic Lawyers acts for employers and for sponsored workers across the sponsorship, nomination and visa stages. Furthermore, because we practise employment law alongside migration law, we review the employment contract that has to survive the nomination as well.
Call (02) 8077 2562 or book a consultation. Suite 19/103 George Street, Parramatta NSW 2150.
Written by Arnela Tolic, Principal Solicitor, Tolic Lawyers.
Disclaimer: This article is general information only and is current at the date of publication. It is not legal advice and you must not rely on it as legal advice. Income thresholds and visa application charges are indexed on 1 July each year, and occupation lists and ANZSCO settings change. Obtain advice specific to your circumstances before acting.
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