For Employers · Published 2026-10-29 · Updated 2026-10-29

186 Direct Entry vs Temporary Residence Transition: Which Stream Should an Employer Use?

Reviewed by a registered migration agent · MARN 1795282
Updated 29 October 2026

The 186 Employer Nomination Scheme visa gives your worker permanent residence in one step. The decision employers get wrong is not whether to use the 186 but which stream: Temporary Residence Transition (TRT), which rewards time already served on a 482, or Direct Entry (DE), which tests the worker’s skills and experience from scratch. Pick the wrong one and you add a skills assessment you did not need, or lodge a nomination the worker cannot meet.

Everything below is taken from the Home Affairs criteria as read on 29 October 2026.

The two streams side by side

	Temporary Residence Transition (TRT)	Direct Entry (DE)
Who it is for	A worker who has held a 482 or 457 (any stream) and worked for you	A worker with no qualifying 482 time: a new hire from overseas, someone on another visa, or a 482 holder who has not yet reached 2 years
Work history	2 years full-time in the last 3, in Australia, in the occupation the 482/457 was granted for, with the nominating employer as the last sponsor	At least 3 years’ relevant work experience anywhere, unless exempt
Occupation list	None named for the stream; the occupation is the one the 482 covered	Must be on the Core Skills Occupation List (CSOL)
Skills assessment	Not mandatory; Home Affairs “might ask” for one	Positive skills assessment before lodging, issued within the last 3 years; a 485-visa assessment is not accepted
Age	Usually under 45 at lodgement; exemptions include academics, government scientists, regional medical practitioners, and high-income earners (Fair Work High Income Threshold in 2 of the last 3 years)	Usually under 45; exemptions for academics (Level B–E), government scientists and technical specialists, and 444/461 holders with 2 of the last 3 years with the employer
English	Competent English, no exemptions since 16 Nov 2019	Competent English
Nomination timing	Visa lodged within 6 months of the nomination being approved	Same
Visa charge	A$6,140 main applicant (second instalment A$4,890 where it applies)	Same
Employer costs	Nomination A$540; SAF levy A$3,000 (turnover under A$10m) or A$5,000 one-off	Same
Salary	At least the CSIT (A$79,423 for nominations lodged 1 Jul 2026 to 30 Jun 2027) and the market rate	Same
After grant	Home Affairs expects the worker to stay with you at least 2 years	Same

When TRT is the right call

TRT is the natural end of the 482-to-186 pathway. If the worker has done two full-time years with you on the 482 within the last three, in the nominated occupation, TRT avoids the skills assessment, avoids the CSOL question, and turns a relationship you have already tested into permanent residence. Multiple 482 visas in the window can be combined, provided you were the last sponsor. Two traps: part-time or unpaid periods do not count toward the two years, and time on a different employer’s 482 counts only if that employer was not the last sponsor.

When Direct Entry is the right call

Use DE when the two years are not there: a new hire from overseas who is a strong fit for a permanent role, a worker on a different visa (working holiday, graduate, partner), or a 482 holder you want to move early. The price of skipping the two years is proof: a CSOL occupation, a skills assessment from the relevant assessing authority, and three years of relevant experience. Start the skills assessment first; it is the slowest step and nothing can be lodged until it is in hand.

Six scenarios

Chef on a 482 with you for 26 months. TRT. No skills assessment needed; confirm the work was full-time throughout and the salary meets the CSIT and market rate.
Software developer on a 482 for 14 months. Not yet TRT. Either wait for the two-year mark or go DE now with an ACS skills assessment and three years’ experience.
Electrician in Australia on a working holiday visa, 5 years’ trade experience. DE, with a Trades Recognition Australia assessment and an occupation on the CSOL; or a 482 first if the assessment cannot be obtained quickly. See the construction trades pathway.
Engineer aged 46, on a 482 with you for 3 years, earning A$190,000. Over 45, but the TRT high-income exemption may apply if earnings met the Fair Work High Income Threshold in 2 of the last 3 years. DE has no equivalent exemption.
GP on a 482 in a regional practice for 2 years. TRT, with the regional medical practitioner age exemption available if needed.
Overseas hire with 10 years’ experience but no Australian visa history. DE if the occupation is on the CSOL and the skills assessment is achievable; otherwise sponsor on a 482 and plan the TRT in two years.

What the employer must show in either stream

An actively and lawfully operating business nominating a genuine position.
Pay at or above the Core Skills Income Threshold and the annual market salary rate for equivalent full-time work at the same location.
The nomination fee and SAF levy paid at lodgement; the levy is never recovered from the worker.
An expectation that the role continues for at least two years after grant.

Home Affairs processes 186 applications under Ministerial Direction 122, with priority for construction, healthcare, teaching, agriculture, aquaculture, fishing and resources occupations and for applicants already in Australia. Current official processing times by stream are on our 186 processing-time page, and the full cost breakdown on the 186 fees page.

General information only, current as at 29 October 2026 and subject to change. It is not migration advice for your business or your worker’s circumstances.

Frequently asked questions

What is the difference between 186 Direct Entry and Temporary Residence Transition?

Temporary Residence Transition (TRT) is for a worker who has already worked for you full time for at least 2 of the last 3 years while holding a 482 (or older 457) visa; it usually needs no formal skills assessment and no occupation list. Direct Entry is for everyone else: the occupation must be on the Core Skills Occupation List, and the worker normally needs a positive skills assessment and at least 3 years of relevant work experience. Both lead to the same permanent visa and cost the same to lodge.

Does the 186 Direct Entry stream require a skills assessment?

Usually yes. Home Affairs says most Direct Entry applicants need a positive skills assessment before lodging, issued no more than 3 years before the application, and a skills assessment obtained for a 485 Graduate visa is not accepted. Exemptions exist for academics nominated by an Australian university, scientists, researchers and technical specialists nominated by an Australian government scientific agency, and subclass 444/461 holders who worked for the nominating employer for 2 of the last 3 years; those exempt from the skills assessment are also exempt from the 3-year experience requirement.

Is there an age limit for the 186?

Usually the worker must be under 45 when the application is lodged, in both streams. The exemptions differ. Direct Entry: senior academics, government scientists and technical specialists, and 444/461 holders with 2 of the last 3 years with the employer. Temporary Residence Transition adds regional medical practitioners with 2 of the last 3 years in a designated regional area, and 457/482 holders who earned at least the Fair Work High Income Threshold in each of 2 of the last 3 years.

What English level does the 186 need?

At least competent English in both streams, for example IELTS 6 in each band or an equivalent. For Temporary Residence Transition there has been no exemption to the English requirement since 16 November 2019. Passport holders of the UK, USA, Canada, New Zealand and Ireland generally meet competent English automatically.

What does a 186 nomination cost the employer?

A nomination fee of A$540 (subject to stream and location) and the Skilling Australians Fund levy, paid in full when the nomination is lodged: A$3,000 one-off if annual turnover is under A$10 million, A$5,000 if it is A$10 million or more. The levy cannot be passed on to the worker and is tax deductible. The worker's visa application charge is A$6,140 for the main applicant, with a second instalment of A$4,890 payable in some cases.

What salary does a 186 position have to pay?

At least the Core Skills Income Threshold, A$79,423 for nominations lodged between 1 July 2026 and 30 June 2027, and at least the annual market salary rate for the role. The CSIT has applied to 186 nominations lodged on or after 7 December 2024. Home Affairs expects the employment to last at least 2 years after the visa is granted.

Does labour market testing apply to a 186 nomination?

Home Affairs' labour market testing page sets out the requirement for the 482 Core Skills and Specialist Skills streams and the 494 Employer Sponsored stream, and does not list the 186. Treat a 186 nomination as a genuine-position test rather than an advertising test, and keep evidence that the role is real, ongoing and paid at market rate. A registered migration agent will confirm what your particular nomination needs.

Other occupations you can sponsor

Employer guides for the roles we're asked about most: list status, caveats, skills assessment, salary and costs for each.