Changes to the 186 Permanent Residency Visa – December 2024 Update

In 2024, the Australian Government introduced several positive migration policy changes to address labour market needs and provide skilled migrants with accessible pathways to Permanent Residency.  

As of 7th December 2024, significant changes have been made to the Employer Nomination Scheme (subclass 186) visa. These changes affect the Temporary Residence Transition (TRT) and Direct Entry (DE) streams, aligning with the recent Migration Strategy to simplify Permanent Residency pathways. These long-awaited changes have come into effect as the Government focuses on its redefined Migration Policy to create a clear pathway to permanent residency. 

Here is a summary of the key changes: 

Changes to the Temporary Residence Transition (TRT) Stream

1. Expanded work experience criteria  

TRT stream applicants can now count all periods of sponsored employment towards the 2-year work experience requirement if employed in occupations listed on their current Subclass 482 Grant letter. This includes employment with previous sponsors under the TSS or SID Program.

2. Applicants must provide evidence of work experience 

The responsibility to demonstrate the required employment period for Subclass 186 TRT has shifted from the employer to the applicant. Applicants must now provide their own evidence to show they meet the work experience requirement, rather than relying on the nominating employer. This change provides applicants with greater flexibility.

3. Introduction of the Core Skills Income Threshold (CSIT) 

The Temporary Skilled Migration Income Threshold (TSMIT) has been replaced by the Core Skills Income Threshold (CSIT). The threshold is set at AUD $73,150, indexed annually. This applies to both the TRT and DE streams.  

 All applicants are required to provide an Income Statements as evidence of employment in their occupation for the required period, which is currently 2 years. Please note that any unpaid holiday or unemployment period cannot be included towards this requirement. 

 4. Age Exemptions 

Unfortunately, age exemptions remain unchanged. The cut-off age remains at 45 years at the time of the application. There are age exemption provisions for regional medical practitioners and high-income applicants.

5. Exclusion of Regional Sponsored Migration Scheme (Subclass 187) 

The changes to the TRT stream do not extend to the Regional Sponsored Migration Scheme (subclass 187), which has been closed since 2019. In limited circumstances, eligible transitional groups still retain their existing access.  

Please note that if your occupation has been removed from the CSOL list and you currently hold a Subclass 482 Visa, you may still be eligible to apply for the 186 Visa. 

Changes to the Direct Entry (DE) stream 

For applicants directly pursuing permanent residency, the updates provide more targeted alignment with Australia’s labour needs: 

1. Introduction of the Core Skills Occupations List (CSOL)  

The introduction of the new Core Skills Occupation List (CSOL) replaces the Medium and Long-Term Strategic Skills List. The comprehensive list is based on the labour market analysis and stakeholder consultation by Jobs and Skills Australia (JSA). The list targets priority sectors like: 

• Construction 

• Cybersecurity 

• Agriculture 

• Health and Education 

• Hospitality and Tourism 

2. Application of CSIT (Replacement of TSMIT) 

Similar to the TRT stream, the CSIT also applies to the Direct Entry stream, with an income threshold of AUD $73,150, indexed annually.  

3. Skills Assessment 

Applicants still need a skills assessment under the Direct Entry stream of the 186 Visa. It is important to note that most of the skills assessing authorities are currently experiencing a backlog of several months, so please allow plenty of time for this step of your visa application.  

Applicants are required to undergo a Skill Assessment under the appropriate code specified in the CSOL List and conducted by the designated authority. It should be noted that certain ANZSCO codes and their corresponding responsible authorities have been updated. 

What do these changes mean for Skilled Migrants? 

These updates simplify the requirements for skilled migrants and streamline the process by offering: 

• Greater flexibility in meeting work experience requirements, especially for those with extensive employment histories or career advancements. 

• Simplified eligibility criteria through the adoption of the CSOL and CSIT, supporting priority industries. 

• Continued support for high-demand professions, including regional medical practitioners and critical sectors like construction and healthcare.

Looking ahead

• These changes mark a significant shift in Australia’s migration policies, emphasizing skilled migration aligned with national priorities. They streamline pathways for Employer Sponsored Visa holders and address critical labour shortages in various sectors. 
• The Government has not yet released its complete policy on these changes, leaving many unknowns, particularly for visa holders with multiple sponsors. We will keep our clients updated via this platform and our weekly newsletter.

Disclaimer: This article is for informational purposes only and does not provide any legal or professional advice. You should seek the advice of a qualified expert before making any decisions based on this article. 

Relevant links

Useful links to get the ball rolling

Study Commercial Cookery 
The Ultimate Trade – Study Pathways 
Temporary Skills Shortage (TSS) Visa – Subclass 482
Employer Nominated (ENS) Visa (Permanent) – Subclass 186 

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