Subclass 186 TRT Employer Obligations: A Practical Guide for Nominating Employers

What the TRT Stream Is and Why It Exists

The subclass 186 visa grants permanent residence to workers nominated by an approved Australian employer. It has three streams: Temporary Residence Transition (TRT), Direct Entry, and Labour Agreement. The TRT stream is specifically designed for workers who have already been working in Australia under a subclass 482 (or the predecessor subclass 457) visa and who have built a sustained employment relationship with the nominating business.

The policy rationale is straightforward: an employer who has sponsored a worker for two or more years has already demonstrated a genuine need for that occupation, and the worker has already demonstrated competence in the Australian workplace. Requiring a fresh skills assessment or labour market testing would duplicate steps already completed during the 482 process. The TRT stream therefore removes those requirements, making the pathway faster and cheaper than the Direct Entry stream for both employer and worker.

For the employer, the decision to use the TRT stream is usually driven by retention — permanently settling a valued worker removes the risk of losing them when their temporary visa expires and makes the business more attractive to skilled workers considering Australia as a long-term destination.

Eligibility Gate 1: The Employer Must Be an Approved Standard Business Sponsor

Before a nomination can be lodged, the employer must hold Standard Business Sponsor (SBS) status. Most businesses that have already sponsored the worker on a 482 visa will already hold this approval, because SBS status is a prerequisite for the 482 process. If SBS approval has lapsed or was never obtained — for example, if the 482 visa was granted under a labour agreement rather than a standard business sponsorship arrangement — the employer must apply for or renew SBS status before proceeding.

The Department of Home Affairs assesses SBS applicants on whether the business is lawfully operating in Australia, has no adverse information that would make sponsorship contrary to the national interest, and has a satisfactory compliance history with immigration and workplace laws. Businesses with a history of underpaying sponsored workers, failing to notify the Department of changes, or having been subject to civil or criminal proceedings related to employment may face refusal or conditions.

SBS approval is separate from the nomination application. Where renewal is needed, it should be initiated well in advance, as processing can add several weeks to the overall timeline.

Eligibility Gate 2: The Nominee's Two-Year Work Period and the November 2025 Rule Change

The core eligibility requirement for the TRT stream is that the nominee must have worked in the nominated occupation, in a full-time capacity, for at least two years before the nomination is lodged — and that work must have been performed while the worker held a valid 482 (or 457) visa.

From 29 November 2025, regulations clarified that the entire two-year qualifying period must be completed with an approved work sponsor. This tightened a previously more flexible rule under which time spent working for a non-sponsoring employer (in exempt occupations) could sometimes count. Under the current rule, if the employer holding sponsorship approval lapses — for instance, the business is sold, deregistered, or the SBS approval expires — any work performed during that lapsed period will not count toward the two-year requirement.

This change has direct operational consequences for employers. Maintaining continuous and current SBS status throughout the period in which a 482 worker is accruing their qualifying time is no longer merely a compliance formality — it is a precondition for the worker being able to access the TRT pathway at all. Employers should treat SBS renewal as a business-critical task and diarise renewal at least six months before expiry.

For workers who lodged their 186 application before 29 November 2025, the old rules continue to apply to their application. The new requirement affects applications lodged on or after that date.

It is also worth noting that the two-year period does not need to be the most recent two years immediately before lodgement in all circumstances, but the employment must fall within a defined lookback window. A registered migration agent can confirm whether a worker's specific work history satisfies the requirement.

The Nomination Application: What the Employer Must Demonstrate

The employer lodges a nomination application through the Department of Home Affairs' online system. The nomination and the worker's visa application are lodged as two linked applications — both must be approved for the permanent visa to be granted. The nomination is the employer's side of that pair.

To obtain nomination approval, the employer must satisfy four core criteria.

**The business is lawfully operating.** The employer must demonstrate active business operations in Australia, compliance with workplace relations laws (including the Fair Work Act), adherence to work health and safety obligations, and no adverse information that would make sponsorship contrary to the national interest. Supporting evidence typically includes recent financial statements, tax records, and business registration documents.

**The position is genuine and full-time.** The nominated role must be a real, ongoing full-time position that the business genuinely needs filled. The Department scrutinises whether the role matches the business's size, structure, and industry. An organisational chart, position description, employment contract, and evidence of the role's operational history all form part of the evidence package. The nomination must attest that the position will be available on a full-time basis for at least two years following the visa grant date.

**The salary meets the annual market salary rate.** The employee must be offered a salary that equals or exceeds the Annual Market Salary Rate (AMSR) for the nominated occupation — meaning the employer cannot pay the sponsored worker less than a comparable Australian worker in the same role and location. From 1 July 2026, the Core Skills Income Threshold (CSIT) sits at AUD 79,423 per year, and all nominations lodged between that date and 30 June 2026 must meet this floor. The CSIT is indexed annually: from 1 July 2026 it rises to AUD 79,423. The higher of the AMSR and the CSIT applies.

**The employer has the financial capacity to pay.** The business must demonstrate it can sustain the salary commitment for the duration required.

The SAF Levy and Nomination Fees: What the Employer Pays

When the nomination is lodged, the employer must pay two government charges.

**Skilling Australians Fund (SAF) levy.** For permanent visas including the subclass 186, the SAF levy is a one-off payment (not an annual charge, unlike the per-year levy that applies to temporary 482 nominations). The amount depends on the business's annual turnover:
- Turnover under AUD 10 million (small business): AUD 3,000
- Turnover of AUD 10 million or above: AUD 5,000

**Nomination application fee.** The standard nomination fee is AUD 540.

These amounts are paid by the employer at the time of lodgement. Australian law prohibits employers from passing these costs to the sponsored worker — the employer cannot ask the worker to reimburse the SAF levy or nomination fee, either directly or by deducting them from wages, even if the worker agrees. Doing so is a breach of sponsorship obligations and can result in civil penalties.

Separately, the worker pays a visa application charge when lodging their own application. Current as at 1 July 2026, the base application charge for a primary applicant is AUD 6,140, with reduced charges for secondary applicants (AUD 3,070 per dependant aged 18 or over, AUD 1,535 per child under 18). Visa application fees are indexed annually and should be confirmed on the Department of Home Affairs pricing page at the time of lodgement.

The total employer outlay for a standard nomination with the SAF levy is therefore AUD 3,540 (small business) or AUD 5,540 (large business). Professional fees for migration advice are additional and vary.

Ongoing Sponsorship Obligations That Continue After the Nomination

Approval of the nomination does not end the employer's obligations. Standard Business Sponsors carry a suite of ongoing obligations that continue throughout the worker's employment and, in some cases, for up to five years after the employment ends.

**Pay no less than the nominated salary.** The employer must pay the worker the salary specified in the nomination (or more). Reductions — even with the worker's consent — that bring pay below the nominated rate can constitute a breach.

**Maintain equivalent terms and conditions.** The sponsored worker must receive terms and conditions of employment (including non-monetary benefits) no less favourable than those offered to Australian workers performing equivalent work in the same workplace.

**Cooperate with Department inspections.** Sponsors must allow officers of the Department access to records and premises for compliance purposes and must not obstruct or mislead investigators.

**Keep records.** Employers must maintain employment records for the sponsored worker and be able to produce them on request. Record-keeping obligations extend for a period after the employment relationship ends.

**Notify the Department of certain events within 28 days.** Notification is required when, among other things: the worker's employment ends or is expected to end sooner than anticipated; there is a material change to the worker's duties or the position; the business changes ownership, structure, or ceases to operate; or the employer becomes insolvent.

**Pay reasonable return travel costs if required.** If a sponsored worker asks the employer to pay for their return travel to their home country after the employment ends in certain circumstances, the employer may be obligated to fund reasonable travel costs.

For the 186 TRT specifically, because the worker transitions to permanent residence on visa grant, many of the temporary visa-specific obligations (such as the 482's obligation to pay return travel costs on termination) diminish once the permanent visa is granted. The worker becomes a permanent resident and is no longer a sponsored temporary worker. However, obligations arising from the nomination period — including record-keeping for that period — remain.

TRT vs Direct Entry: Which Stream Makes More Sense for the Employer?

Employers sometimes have a choice between using the TRT stream to nominate an existing 482 worker and using the Direct Entry stream to recruit a new permanent worker directly from overseas or the domestic market. The two streams differ in several material ways that affect the employer's cost, process burden, and candidate pool.

**Skills assessment.** The TRT stream generally does not require the nominee to obtain a formal skills assessment from a relevant assessing authority. This eliminates a step that can take months and is mandatory under the Direct Entry stream. For workers in occupations where skills assessment bodies have long queues, this is a significant practical advantage of the TRT route.

**No age limit for TRT nominees.** The TRT stream carries no upper age limit. The Direct Entry stream requires the nominee to be under 45 years of age at the time of application. An employer who wants to permanently settle a highly experienced worker aged 45 or over has only the TRT route available (or a Labour Agreement stream with an age waiver, in limited circumstances).

**Occupation eligibility.** For Direct Entry, the nominated occupation must appear on the Core Skills Occupation List (CSOL). Under the TRT stream, if the occupation was already approved for the worker's existing 482 nomination, it does not need to be on the CSOL at the time of the 186 nomination. This means workers in occupations that were removed from the CSOL after the 482 was granted can still access permanent residence through the TRT route.

**Processing time.** Both streams currently involve comparable processing times — the Department processes around 50% of TRT applications within 13–14 months and around 90% within 18 months. Direct Entry sits in a similar range. Neither stream is materially faster than the other at present.

**What the employer cannot avoid.** Both streams require the same SAF levy, the same nomination fee, and the same genuine position and salary obligations. Neither stream exempts the employer from standard sponsorship obligations.

The Nomination Process: Steps and Sequencing

The following sequence reflects a standard TRT nomination process for an employer who already holds current SBS approval.

**Step 1 — Confirm eligibility.** The employer and worker should review whether the nominee's work history meets the two-year requirement under the rules in force from 29 November 2025. This means verifying that SBS approval was continuously current throughout the qualifying period, that the work was full-time, that it was in the nominated occupation, and that it was performed while the nominee held a valid 482 or 457 visa.

**Step 2 — Gather nomination evidence.** The employer assembles the evidence package: business registration and financial documents, organisational chart, position description, employment contract, payroll records demonstrating the salary paid, and any other material that establishes the genuineness and ongoing nature of the role.

**Step 3 — Lodge the nomination online.** The employer lodges the nomination application through ImmiAccount, paying the AUD 540 nomination fee and the SAF levy at the time of lodgement. The nomination and visa applications are lodged simultaneously or in close sequence — the visa application cannot be granted before the nomination is approved.

**Step 4 — Respond to requests for further information.** The Department may issue a request for additional evidence. Prompt responses reduce delays. Common requests relate to demonstrating that the salary is market-competitive, that the position is genuinely full-time, or that the business is actively and lawfully operating.

**Step 5 — Maintain obligations during processing.** While the application is under assessment — which can take a year or more at current processing speeds — the employer must continue to meet all sponsorship obligations under the existing 482 arrangement, pay the worker the nominated salary, and notify the Department of any material changes.

**Step 6 — Post-grant employment continuation.** Once the 186 visa is granted, the worker is a permanent resident. The employer is not legally required to retain the worker indefinitely after grant, but the nominated position must have been genuine at the time of nomination. Employers are expected to continue the employment relationship for the period described in the nomination.

Does the employer need to be a new Standard Business Sponsor or does the existing 482 SBS status carry over?

Existing 482 Standard Business Sponsor status applies to the 186 nomination — the employer does not need to reapply for SBS status if the approval is still current. However, SBS approval has an expiry date, and if it has lapsed the employer must renew before lodging a 186 nomination. Employers should check the current expiry date in ImmiAccount well before the intended lodgement date.

Can the employer recoup the SAF levy or nomination fees from the sponsored worker?

No. Australian law prohibits the employer from passing on the SAF levy, the nomination fee, or any other costs associated with the nomination to the sponsored worker, either by direct charge, deduction from wages, or any other arrangement — even if the worker consents in writing. This is a firm sponsorship obligation and breach can result in civil penalties and the cancellation of sponsorship approval.

What happens if the worker's employment ends shortly after the 186 visa is granted?

Once the subclass 186 visa is granted, the worker is a permanent resident and is no longer subject to the visa condition that ties them to the sponsoring employer. The worker is free to change jobs or the employer is free to end the employment, subject to the usual requirements of Australian employment law (notice periods, unfair dismissal provisions, and so on). However, the nomination must have been genuine at the time it was made — if evidence later emerged that the role did not genuinely exist, that could affect the employer's future sponsorship history with the Department.

What changed on 29 November 2025 regarding the two-year work period?

From 29 November 2025, all qualifying employment counted toward the 186 TRT two-year work period must have been performed with an approved work sponsor. Previously, workers in certain exempt occupations could count time worked with a non-sponsoring employer. Under the current rule, any period during which the employer's Standard Business Sponsor status was lapsed or cancelled does not count toward the nominee's qualifying time. Workers who lodged their 186 application before 29 November 2025 are not affected by this change.

How does the TRT stream differ from the Direct Entry stream for an employer's purposes?

The TRT stream is only available where the nominee is already working for the nominating employer on a 482 (or 457) visa and has completed two years of qualifying work. The Direct Entry stream is available for new hires from overseas or from the local market who have not held a 482 with this employer. Direct Entry requires a formal skills assessment and the nominee must generally be under 45, neither of which applies to TRT. The SAF levy, nomination fee, and salary obligations are the same for both streams.

Is the employer required to provide any training or pay any levy beyond the SAF payment?

The SAF levy is the mechanism through which the employer contributes to workforce training in Australia — there is no separate training levy or contribution requirement on top of it. The SAF levy for a permanent 186 nomination is a one-off payment (AUD 3,000 or AUD 5,000 depending on turnover), not an annual charge. Employers do not need to demonstrate that they have conducted specific training programs as a condition of the 186 nomination, unlike the obligations that previously existed under the former training benchmark framework.