Skip to content

Subclass 186 ENS: Direct Entry vs Transitional

Subclass 186 - the Employer Nomination Scheme - is the most common pathway to permanent residency for workers sponsored by an Australian employer. There are three streams, but for most applicants the choice is between the Direct Entry stream and the Temporary Residence Transition stream. The right choice depends on your work history, timing, and occupation.

The three 186 streams

  1. Temporary Residence Transition (TRT) stream: for 482 holders transitioning to PR after 3 years of work with the nominating employer
  2. Direct Entry (DE) stream: for applicants who meet skilled qualification and experience requirements, without prior 482 employment
  3. Labour Agreement stream: used under specific labour agreements, rare

TRT stream (Transitional)

Key requirements:

  • Currently hold a 482 Medium-Term stream visa (or in some cases still on older 457 visa)
  • Worked for the nominating employer full-time for at least 3 years
  • Occupation on the MLTSSL at the time of nomination
  • Employer willing to nominate and meet sponsorship obligations
  • English requirement: Competent English (IELTS 6.0)

Age limit: 45 at time of nomination (some exemptions for specific professions).

DE stream (Direct Entry)

Key requirements:

  • Skilled qualification with full skills assessment for the nominated occupation
  • At least 3 years of relevant experience in the occupation (prior to nomination)
  • Occupation on MLTSSL
  • English: Competent English (IELTS 6.0)
  • Age: under 45 at application

DE stream does not require prior Australian work experience. Applicants can be offshore at the time of application.

Why the choice matters

For applicants on 482 Medium-Term reaching 3 years:

  • TRT is the natural pathway
  • No skills assessment required (employer’s nomination is the primary test)
  • Processing times typically faster
  • Pricing is lower

For applicants who have worked at the employer but have a pathway issue:

  • Occupation changed between 482 and 186, and the current role is MLTSSL - DE may work even after 3 years
  • Less than 3 years of continuous employment - DE may be required despite 482 tenure
  • Change of employer - TRT requires 3 years with the nominating employer specifically

For offshore applicants with strong skills:

  • DE is the pathway
  • Skills assessment required
  • Full 3 years of post-qualification experience documented
  • Offshore employer willing to sponsor (rare)

For applicants who never held a 482 but are already in Australia on another visa:

  • DE is the pathway
  • Common for 485 graduates with strong career progression

The skills assessment complication

DE requires a skills assessment. The assessment is conducted by the designated assessing authority for the occupation (CPA Australia for accountants, ANMAC for nurses, Engineers Australia for engineers, etc.). Timing:

  • Application: 2-8 weeks depending on occupation
  • Cost: $500-$3,000+ depending on assessing authority
  • Documents required: qualifications, references, employment evidence

For some occupations, the skills assessment is straightforward. For others (nursing with overseas qualifications, some engineering disciplines), it’s a multi-step process that can take 6-12 months.

Processing times (2026)

TRT stream: 6-12 months DE stream: 12-24 months

TRT is faster because Home Affairs already has a record of the applicant’s 482 visa and employment. DE requires independent assessment of qualifications and experience.

Cost comparison

Both streams: visa application fee $4,770 (2026) for primary applicant, plus fees for family members. DE also incurs the skills assessment fee ($500-$3,000).

The employer’s perspective

Employers often prefer TRT because:

  • Lower administrative burden
  • Applicant is a known quantity after 3 years
  • Faster processing

Employers may push for DE if:

  • A key offshore candidate is being recruited directly to PR
  • The 3-year 482 tenure wouldn’t make sense for the role

Post-grant treatment

Once either stream of 186 is granted, the applicant is a Permanent Resident equivalent to any other PR:

  • Full lending access
  • FHG eligibility (for first home buyers)
  • Unlimited work rights with any employer
  • Pathway to citizenship after 4 years residency + 1 year PR

Lending implications

During 482 with 186 pending:

  • Lenders vary on whether a “186 nomination approved” file qualifies for PR-equivalent lending treatment
  • Many lenders will pre-approve but hold settlement until visa is granted
  • Loan approved now with settlement after 186 grant is possible with some lenders

Post-186 grant:

  • Full PR lending access
  • Refinance from any 482-era specialist loan to major bank product at sharpest rates

Strategic choice summary

  • On 482, 3+ years at same employer, occupation MLTSSL: TRT is default, fastest, cheapest
  • On 482 but occupation not on MLTSSL: consider changing roles internally to qualify, or use DE with skills assessment
  • Offshore strong candidate with ready sponsor: DE with thorough skills assessment preparation
  • 485 graduate with experienced-roles-offered: DE after 3 years post-qualification experience, often via the same employer that hired the graduate