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How has the permanent residence requirement for the Subclass 186 changed?

How did the Residence Transition for the Subclass 186 Employer Nomination program change recently? Who qualifies now for permanent residence with a temporary visa?


Answers
  • January 07, 2026

    Significant reforms to the Subclass 186 EmployerNomination Scheme (ENS) in 2024 and 2025 have streamlined the journey topermanent residency (PR) for temporary visa holders: (1)  The Temporary Residence Transition (TRT)stream has become the primary pathway for most workers, as the residencyrequirement has been reduced from three years to just two years ofsponsored work. Crucially, this stream now welcomes all Subclass 482 visa holders, regardless of whether their occupation is on the Short-term orRegional lists, and generally does not require a formal skills assessment. However, a strict "Approved Sponsor" rule implemented in late 2025means you can only count experience gained while your employer held an active sponsorship; any work done during "gaps" where a sponsorship hadlapsed or was pending will no longer be credited toward your two-year total. (2)  The Labour Agreement stream continues toserve employers with specific, formal arrangements with the government, nowoffering these workers a more accessible bridge to the TRT pathway forpermanent residency. Thus, the TRT and Labour Agreement streamshave become more flexible, (3)  The Direct Entry (DE) stream remainslargely unchanged, still requiring at least three years of relevantpost-qualification work experience and a mandatory positive skills assessment.The Direct Entry stream is best suited for high-skilled applicants who are either offshore or have not yet completed 2 years with an Australian sponsor but wish to secure PR immediately upon arrival. Further, the migration framework has been updated to reflect Australia's modern economic needs through the introduction of the Core Skills Occupation List (CSOL), which replaces older, more restrictive lists. Additionally, the previous income threshold has been replaced by the Core Skills Income Threshold (CSIT), currently set at $ 76,515 and subject to annual indexing. While these changes provide much more flexibility, such as the ability to switch employers without "restarting" your residency clock, applicants must still be under the age of 45 (unless a specific exemption applies, such as a Designated area or a labour agreement) and demonstrate competent English to qualify for permanent residency in 2026.