Subclass 186 Nomination Requirements for Employers

If you are an Australian employer looking to sponsor a skilled worker for permanent residency, the Subclass 186 Employer Nomination Scheme may be an appropriate pathway. However, before the visa applicant can succeed, the employer must first satisfy the nomination requirements.

A Subclass 186 nomination is the employer’s part of the process. It requires the business to nominate a genuine position, demonstrate that it is actively operating in Australia, and show that the role and salary meet the relevant migration requirements.

At Tolic Lawyers, we assist employers with preparing strong and decision-ready 186 nomination applications, including advice on genuine position requirements, salary compliance, occupation alignment, and supporting business evidence.

What Is a Subclass 186 Nomination?

A Subclass 186 nomination is lodged by the employer as part of the permanent employer-sponsored visa process. The nomination is separate from the visa application itself.

In simple terms, the employer must show that:

• the business is actively and lawfully operating in Australia
• the nominated position is genuine
• the role fits within the operations of the business
• the salary meets relevant requirements
• the terms and conditions of employment are compliant
• the worker is being nominated in an eligible occupation under Transitional arrangements (haviong worked for the employer for 2 years full time on a subclass 482 visa)
• Direct Entry, must demonstrate 3 years of work experience by nominee (visa applicant) along with a skill assessment.

Even where the visa applicant appears eligible, the application may still fail if the nomination is not properly prepared or supported.

Employer Requirements for a 186 Nomination

Active and Lawful Business Operations

The employer must be actively and lawfully operating a business in Australia. This means the business should be genuine, currently trading, and able to provide supporting evidence of its operations.

Depending on the case, this may include:

• ABN and business registration documents
• BAS and financial statements
• business bank statements
• invoices, contracts, or client agreements
• payroll records
• organisational charts or staffing records

Genuine Need Requirement

One of the most important parts of a 186 nomination application is proving that the nominated role is genuine needed for at least 2 years

The Department of Home Affairs may look at:

• the nature and size of the business
• the day-to-day operations of the business
• why the role is needed
• whether the duties align with the nominated occupation
• whether the position fits naturally within the business structure
• whether the role will remain under the direct control of the nominating employer

This becomes especially important in cases involving small businesses.

Full-Time Position for at Least 2 Years

The nominated position must generally be full-time and available for at least 2 years. Employers should ensure that the employment contract, nomination details, and supporting evidence are all consistent.

Any inconsistency between the role being nominated and the contract offered to the employee may create issues in the application.

Salary Requirements

The salary offered to the worker must meet the relevant migration requirements and be supported by proper evidence.

In many cases, employers must demonstrate that:

• the salary is consistent with the market rate and at least CSIT of $76515 or SSIT of $141,210 depending on the occupation (for which occupation must be on CSOL list)
• If there is an equialvent worker, copy of payslip and employment contract must be provided and salary be in line with CSIT/SSIT threshold.
• the worker will not receive terms and conditions no less favourable than an equivalent Australian worker

Evidence may include:

• employment contracts
• pay records for equivalent Australian workers
• award or enterprise agreement material
• market salary information
• salary benchmarking documents

Salary issues are a common reason nominations are delayed or refused, so this part of the application should be prepared carefully.

Occupation Alignment

For a 186 Direct Entry nomination, the occupation must be eligible and the role duties must align with the nominated occupation.

It is not enough to rely on a job title alone. The actual duties of the role should reflect the relevant occupation properly. Where the role description is too broad, too junior, or inconsistent with the occupation claimed, the nomination may face closer scrutiny.

Why 186 Nominations Can Be Refused

A Subclass 186 nomination may run into difficulty where:

• the business does not provide enough evidence of active operations
• the nominated role is not clearly genuine
• the position does not align with the selected occupation
• the salary evidence is weak or inconsistent
• the business cannot show a genuine need for the role
• the contract terms do not support the nomination
• the application relies on generic material rather than tailored evidence and submissions

For this reason, employers should treat the nomination as a substantial application in its own right, not just an administrative step.

How Tolic Lawyers Can Assist With a 186 Nomination

We assist employers with:

• advice on Subclass 186 nomination requirements
• review of business eligibility and supporting evidence
• genuine position submissions
• occupation alignment analysis
• salary and market rate evidence review
• contract review for nomination consistency
• document checklists tailored to the business
• preparation of front-loaded nomination applications

We understand that every business is different. Therefore, we work closely with employers to prepare nomination applications that are clear, properly supported, and tailored to the role and business operations.

FAQ – Subclass 186 Nomination

What is a Subclass 186 nomination?

A Subclass 186 nomination is the employer’s part of the permanent employer-sponsored visa process. The employer nominates an eligible position, and the worker then lodges the visa application.

Does an employer need to nominate the worker for a 186 visa?

Yes. A valid employer nomination is required before the Subclass 186 visa can succeed.

Does the employer need to be actively operating in Australia?

Yes. The employer must be actively and lawfully operating a business in Australia and be able to provide evidence of that business activity.

Does the nominated position need to be genuine?

Yes. The employer must show that the role is real, necessary to the business, and consistent with the nominated occupation.

Does the role need to be full-time?

Yes. The nominated role must generally be full-time and available for at least 2 years.

Does the employer need to pay market salary?

The salary offered must meet the relevant migration requirements and be supported by proper salary evidence, so at least CSIT/SSIT threshold or market salary rate, whichever one is higher. 

What documents are usually needed for a 186 nomination?

This may include business registration documents, BAS, financial records, organisational documents, employment contracts, position descriptions, and salary evidence.

Can a small business lodge a 186 nomination?

Yes. A small business can still lodge a nomination if it can show that it is actively operating, that the role is genuine, and that it can meet the relevant nomination requirements.

Can labour hire businesses lodge a 186 nomination?

Potentially, but these cases are often more complex and require careful review of the business model, direct control, and how the nominated role fits within the nominator’s own business activities.

Why are 186 nominations refused?

Common issues include weak business evidence, poor occupation alignment, unclear salary evidence, or failure to properly establish that the position is genuine.

Need Help With a 186 Nomination?

If you are an employer considering sponsoring a worker for permanent residency, it is important to ensure the nomination is properly prepared from the start.

Tolic Lawyers can assist with advice, strategy, and preparation of Subclass 186 nomination applications tailored to your business and the nominated role.

Book a 10 Minutes Free Discovery Call today to understand how we can assist you.

Disclaimer

The content on this page is general information only. It does not constitute legal advice and should not be relied upon as legal advice. Each matter depends on its own facts and circumstances, and you should obtain tailored legal advice before proceeding.