Employer Nomination Scheme (ENS) Visa

Subclass 186 Nomination Requirements for Employers

Sponsor a skilled worker for permanent residency — with a nomination that holds up.

If you are an Australian employer looking to sponsor a skilled worker for permanent residency, the Subclass 186 Employer Nomination Scheme (ENS) may be the right pathway. But before the visa applicant can succeed, the employer must first satisfy the 186 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 help employers prepare strong, decision-ready 186 nomination applications — covering 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 — separate from, and in addition to, the worker’s visa application. In simple terms, the employer must show that:

• the business is actively and lawfully operating in Australia;
• the nominated position is genuine and fits within the operations of the business;
• the salary meets the relevant migration requirements; and
• the terms and conditions of employment are compliant.

The worker is then nominated either under the Temporary Residence Transition (TRT) stream — having worked full-time for the employer on a Subclass 482 (or 457) visa for at least two years — or under the Direct Entry stream, which requires the nominee to demonstrate three years of relevant work experience and a positive skills assessment. Even where the visa applicant appears eligible, the application can still fail if the nomination is not properly prepared and supported.

TRT vs Direct Entry: which nomination stream?

Employer requirements for a 186 nomination

Active and lawful business operations

The employer must be actively and lawfully operating a business in Australia — genuine, currently trading, and able to evidence 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 for the position

One of the most important parts of a 186 nomination is proving the role is genuinely needed and will be available full-time for at least two years. The Department of Home Affairs may consider the nature and size of the business, its day-to-day operations, why the role is needed, whether the duties align with the nominated occupation, whether the position fits naturally within the business structure, and whether the role will remain under the direct control of the nominating employer. This is especially important for small businesses.

Full-time position for at least two years

The nominated position must generally be full-time and available for at least two years. The employment contract, nomination details and supporting evidence must all be consistent — any mismatch between the role nominated and the contract offered can create problems in the application.

Salary requirements

The salary offered must meet the relevant migration requirements and be supported by proper evidence. In practice, the salary must be at least the Core Skills Income Threshold (CSIT) — currently AUD $76,515, rising to AUD $79,499 from 1 July 2026 — and at least the Annual Market Salary Rate (AMSR) for an equivalent Australian worker, whichever is higher. (Unlike the 482 Specialist Skills stream, there is no separate higher threshold for the 186.) Where there is an equivalent Australian worker, a copy of their payslip and employment contract should be provided. Supporting evidence may include:

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

Salary issues are a common reason nominations are delayed or refused, so this part of the application should be prepared carefully. Note that the 186 does not require Labour Market Testing, but the Skilling Australians Fund (SAF) levy is payable on nomination (a one-off $3,000 for small businesses, or $5,000 for larger businesses).

Occupation alignment

For a 186 Direct Entry nomination, the occupation must be eligible — on the Core Skills Occupation List (CSOL) — and the role duties must genuinely align with the nominated occupation. A job title alone is not enough: case officers compare the actual duties against the ANZSCO occupation description. Where the role description is too broad, too junior, or inconsistent with the occupation claimed, the nomination faces 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, or a genuine need cannot be shown
• the position does not align with the selected occupation
• the salary evidence is weak or inconsistent
• 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, decision-ready nomination applications

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

Frequently asked questions

What is a Subclass 186 nomination?

It is the employer’s part of the permanent employer-sponsored visa process. The employer nominates an eligible position, and the worker then lodges the Subclass 186 visa application. Both must be approved.

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 be granted.

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 activity.

Does the nominated position need to be genuine?

Yes. The role must be real, necessary to the business, available full-time for at least two years, and consistent with the nominated occupation.

What salary must the employer pay?

The salary must be at least the Core Skills Income Threshold (currently $76,515, rising to $79,499 from 1 July 2026) and at least the Annual Market Salary Rate for an equivalent Australian worker, whichever is higher.

Does the 186 require Labour Market Testing?

No. Unlike the Subclass 482 and 494, Labour Market Testing is not required for the Subclass 186 nomination.

What documents are usually needed?

Typically business registration documents, BAS, financial records, organisational documents, employment contracts, position descriptions and salary evidence — tailored to the business and role.

Can a small business or labour hire business lodge a 186 nomination?

Yes, a small business can if it is actively operating, the role is genuine, and the nomination requirements are met. Labour hire arrangements are more complex and need careful review of the business model, direct control and how the role fits the nominator’s own activities.

Why are 186 nominations refused?

Common issues include weak business evidence, poor occupation alignment, unclear or inconsistent 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.

Tolic Lawyers — Immigration & Employment Law

Suite 19/103 George Street, Parramatta NSW 2150

P: (02) 8077 2562   ·   E:    ·   toliclawyers.com.au

Disclaimer: The content on this page is general information only and is current as at June 2026. It does not constitute legal advice and should not be relied upon as legal advice. Subclass 186 nomination requirements, income thresholds and occupation lists change — the CSIT re-indexes on 1 July 2026 — and each matter depends on its own facts. You should obtain tailored legal advice before proceeding. Liability limited by a scheme approved under Professional Standards Legislation.