Thinking of hiring skilled overseas talent for your business? The Employer Nomination Scheme (Subclass 186) visa could be your route to doing that legally and permanently. But how much does it really cost employers? What documents are required? And what steps must both employers and employees follow?
This guide answers those questions, especially focusing on the 186 visa cost for employers. We break it down into eligibility, fees, document checklists, and the most common mistakes to avoid.
Please Note: This article serves as a general guide to help you understand the topic, with information accurate as of the publication date. We recommend consulting a registered migration agent or check The Department of Home Affairs for precise, up-to-date guidance tailored to your specific circumstances.
Understanding the Subclass 186 Visa
The Employer Nomination Scheme (Subclass 186) visa is a permanent residency visa designed for skilled workers nominated by an Australian employer. It offers a pathway for both onshore and offshore applicants to settle in Australia permanently and includes provisions for eligible partners and dependents.
There are three streams under this visa:
1. Direct Entry Stream
This stream is for applicants who are outside Australia or have not worked with the nominating employer for at least three years. A skills assessment is mandatory unless exempted, and the English language requirement must be met (IELTS score of at least 6 in each band or equivalent).
2. Temporary Residence Transition (TRT) Stream
This is for applicants who have already worked with their nominating employer in Australia for at least three years on a 457 or 482 visa. The skills assessment is usually waived, but English proficiency and age requirements still apply.
3. Labour Agreement Stream
This applies when the employer has a labour agreement with the Australian government. It typically includes roles that are not on the standard skilled occupation list and may have slightly different requirements.
Key Eligibility Criteria Across Streams
- Age Limit: You must be under 45 years of age, unless you meet an age exemption (such as earning a high income, working in regional areas, or being a researcher/academic).
- English Proficiency: All applicants must meet the English requirement for 186 visa, unless exempt. This also applies to partners and dependents over 18 years of age unless they qualify for the functional English exemption.
- Genuine Relationship: For partners included in the visa, you must provide proof of a genuine and ongoing relationship. This includes marriage or de facto relationships supported by evidence.
- Permanent Residency: One of the biggest advantages of the 186 visa is that it grants direct permanent residency upon approval, making it an attractive option for skilled workers and their families.
This visa provides a structured and permanent pathway for skilled workers, but the requirements can differ widely depending on the chosen stream. To make an informed decision, let’s explore what responsibilities and financial commitments fall on the employer.
Employer Obligations and Costs
Employers play a central role in the Subclass 186 visa process, not only in sponsoring the applicant but also in bearing several associated expenses. Understanding the full scope of financial responsibility is essential before initiating a nomination.
Key Components of the 186 visa cost for employer:
- Nomination Fee: Employers must pay a nomination charge of AUD $540 for each applicant they nominate under the 186 visa program.
- Skilling Australians Fund (SAF) Levy: A compulsory contribution towards national workforce training. The levy amount is based on the business’s annual turnover: $1,200.00 per year (for turnover less than 10 million); or $1,800.00 per year (for turnover 10 million or more)
This levy must be paid upfront at the time of nomination and is non-refundable, even if the application is refused.
Employer Eligibility Requirements
To nominate an overseas worker, employers must:
- Be actively and lawfully operating in Australia
- Demonstrate a genuine need for the position
- Offer a full-time, ongoing role that aligns with an eligible occupation on the Medium and Long-term Strategic Skills List (MLTSSL)
- Commit to paying the Australian market salary rate (not below the Temporary Skilled Migration Income Threshold)
Important Note:
The 186 visa cost for the employer is not transferable to the employee. Australian immigration law prohibits employers from recovering or passing on any part of these visa-related costs to the nominee.
Employers must not only meet eligibility criteria but also bear mandatory costs that cannot be passed on to the employee. Now that we’ve covered the employer’s side, let’s look at what the employee needs to prepare and pay for.
Employee Requirements and Costs
While employers cover nomination-related expenses, visa applicants (employees) must prepare for their own set of costs and requirements under the Subclass 186 visa.
Visa Application Charges (as of 2025):
- Primary applicant: AUD $4,770
- Additional applicant (18 and over): AUD $2,385
- Additional applicant (under 18): AUD $1,190
These fees are payable at the time of submitting the visa application through the Department of Home Affairs’ ImmiAccount system.
Other Common Applicant Costs:
- English Language Test Fees: Required for most streams unless exemptions apply. Costs vary by provider (IELTS, TOEFL, PTE, etc.).
- Skills Assessment Fees: Applicable under the Direct Entry stream. Fees depend on the assessing authority for the nominated occupation.
- Medical Examinations: Mandatory for all applicants, with pricing based on provider and location.
- Police Clearance Certificates: Required from each country where the applicant has resided for 12 months or more over the past 10 years.
Note on Second Instalment:
Applicants who do not have functional English may be liable to pay an additional AUD $9,800 second installment charge. This is applicable per adult applicant without the required English level.
For a smooth application, employees must be financially prepared and ensure all their mandatory requirements are covered. With costs and eligibility covered, the next step is understanding what documents are needed to support the nomination.
Document Checklist for Employers
Employers play a key role in sponsoring skilled overseas workers for permanent residency under the Subclass 186 visa. The nomination process requires a solid foundation of documents that prove business legitimacy, financial health, and the genuine need for the position being offered.
Below is a checklist of essential documents employers need to prepare for a successful nomination application:
1. Business Registration Documents
- Australian Business Number (ABN)
- Australian Securities and Investments Commission (ASIC) registration
- Business name registration (if applicable)
2. Financial Records
- Profit and loss statements for the past 12 months
- Recent Business Activity Statements (BAS)
- Annual tax return (if available)
These are critical for demonstrating your capacity to sustain the nominated role and fulfill salary commitments.
3. Employment Contracts and Position Details
- Draft employment contract outlining terms, salary, and responsibilities
- Full job description, including duties, reporting structure, and qualifications required
- Evidence the position aligns with the nominated occupation on the Medium and Long-term Strategic Skills List (MLTSSL)
4. Organisational Chart
- A simple chart showing where the nominated position fits within your business structure
5. Justification for the Role
- Business case or statement explaining the genuine need for the position
- Evidence of local recruitment efforts (if applicable)
Preparing these documents accurately is crucial not only to support the nomination but also to justify the 186 visa cost for employers, including the Skilling Australians Fund (SAF) levy and nomination fees. Incomplete or inconsistent documentation is one of the leading reasons for nomination refusals.
Let’s now take a look at the documents employees need to submit to complete their part of the application.
Document Checklist for Employees
For a Subclass 186 visa application to proceed smoothly, the employee must provide a comprehensive set of documents to demonstrate identity, qualifications, skills, and character. These documents help the Department of Home Affairs verify that the applicant meets all requirements under the nominated stream.
Here’s a detailed checklist to guide employee applicants:
1. Personal Identification
- Valid passport (bio-data page and all visa stamps or travel history)
- National identity card (if applicable)
2. Skills Assessment
- Positive skills assessment from a relevant assessing authority (mandatory for most Direct Entry applicants)
- Assessment must be specific to the nominated occupation
3. English Language Proficiency
- IELTS, PTE Academic, or TOEFL test results (valid and within acceptable score bands)
- Test must have been taken within the last 3 years
Note: Applicants who do not demonstrate functional English may be liable for a second installment fee, adding to the overall cost.
4. Employment References
- Letters from previous employers confirming roles, responsibilities, and dates of employment
- Must be on official company letterhead and signed
5. Educational Qualifications
- Degree/diploma certificates and transcripts
- Official translations for non-English documents
6. Health and Character Evidence
- Completed medical examination through an approved panel physician
- Police clearance certificates for each country lived in for 12+ months in the past 10 years (from age 16)
Accurate and complete documentation is essential to avoid delays or refusals. Applicants should ensure that all scanned copies are clear, readable, and in PDF format. These documents not only support the visa application but help validate the investment made by employers, especially considering the 186 visa cost for employers and their compliance obligations.
Once all documentation is in place, both parties must follow the correct steps in the application process.
Application Process Overview
The Subclass 186 visa process involves two main stages: nomination by the employer and visa application by the employee. Both steps must be completed accurately and in the correct sequence to avoid processing delays or refusals.
Step 1: Employer Submits Nomination Application
- The employer selects the appropriate stream (Direct Entry, Temporary Residence Transition, or Labour Agreement).
- They lodge the nomination via ImmiAccount.
- Required documents include proof of business legitimacy, position details, and evidence of the genuine need for the role.
- The nomination fee and Skilling Australians Fund (SAF) levy must be paid during this step.
Employers must understand that these costs are mandatory and cannot be passed on to the employee. The 186 visa cost for employers is a key component of their sponsorship obligation.
Step 2: Employee Submits Visa Application
- Once the nomination is approved or submitted with a Transaction Reference Number (TRN), the nominated employee can lodge their visa application.
- All supporting documents such as skills assessment, English proficiency, health and character clearances must be uploaded at this stage.
Step 3: Wait for Processing and Decision
- The Department of Home Affairs may request additional information or conduct background checks.
- Visa processing times can vary depending on the stream and completeness of the application.
- Both the employer and employee should monitor their ImmiAccount for updates.
Staying organised and ensuring the submission of accurate information from both parties is essential. A mismatch in documents or premature application lodgement can result in rejection or unnecessary delays.
Still, even the most prepared applicants can fall into common traps. Let’s go over some avoidable mistakes.
Common Mistakes to Avoid
Navigating the Subclass 186 visa process requires close attention to detail. Whether you’re an employer nominating a skilled worker or a visa applicant preparing documentation, avoiding these common pitfalls can save time, money, and stress:
1. Submitting Incomplete or Inaccurate Documentation
Missing employment contracts, financial records, or skills assessments can lead to immediate rejection. Always cross-check the required documents for both employer and employee before submission.
2. Not Meeting Stream-Specific Eligibility
Each stream, including Direct Entry, Temporary Residence Transition, and Labour Agreement, has unique criteria. For example, skipping a required skills assessment under Direct Entry or misrepresenting time spent on a subclass 482 visa under the Temporary Residence Transition stream can derail the entire application.
3. Applying Out of Sequence
The employee must not submit their visa application before the employer lodges the nomination or shares the TRN. Premature submissions can cause delays or result in the application being invalid.
4. Misunderstanding Who Bears the Cost
Employers are solely responsible for paying the nomination fee and Skilling Australians Fund (SAF) levy. Trying to pass the 186 visa cost for the employer to the employee violates immigration rules and can lead to serious consequences.
5. Overlooking Validity of Documents
Expired passports, outdated English test scores, or old police clearance certificates can delay or invalidate an otherwise strong application.
6. Assuming All Occupations Are Eligible
Only occupations listed on the relevant Medium and Long-term Strategic Skills List (MLTSSL) or under an approved labour agreement qualify. Always check the most updated occupation list before proceeding.
7. Failing to Seek Expert Help
The 186 visa process is complex, and even small errors can have major implications. Consulting with a registered migration agent ensures your application aligns with the latest immigration policies and avoids preventable issues.
To bring it all together, here are some final thoughts on how to approach the 186 visa process with confidence.
Final Thoughts
The Subclass 186 visa offers a clear path to permanent residency, but it comes with detailed requirements for both employers and employees. Understanding the 186 visa cost for employers, from nomination fees to the SAF levy, is essential. Likewise, applicants must prepare accurate documents and meet eligibility criteria for a successful outcome.
For a smooth application, double-check each step, follow the correct sequence, and seek expert help when needed.
Need help managing the 186 visa process?
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