Employer-sponsored · Subclass 186 · Labour Agreement
Subclass 186 Labour Agreement Stream — Permanent Residence Under a DAMA or Industry Agreement
The Subclass 186 Labour Agreement Stream allows skilled workers nominated by an Australian employer under a labour agreement to live and work in Australia permanently. It is the labour agreement stream Australia uses when the standard settings do not fit. The agreement, not the regulations, sets the age, English, skills and experience you must show. As a labour agreement visa Australia grants permanently, it needs a labour agreement sponsor first.
What is the Subclass 186 Labour Agreement stream?
The Labour Agreement stream is the 186 pathway for workers nominated under an employer's labour agreement with the Minister. It includes every DAMA and every industry agreement. The agreement sets the age limit, the English level, the skills evidence and the experience required. The visa criteria defer to it. Permanent residence on grant.
Key facts
- The employer must be a party to an agreement in effect. A company-specific, industry, project or Global Talent Employer Sponsored agreement. Or an agreement executed under a DAMA head agreement.
- The agreement names the occupation. Only occupations the agreement lists for permanent nomination can be nominated, and only within the agreement's yearly cap.
- Age: under 45, or the age the agreement sets. A DAMA or industry agreement can raise the age limit. If it does not, the standard under-45 rule applies with no other exemption.
- English, skills and experience come from the agreement. The visa criteria require what the agreement specifies for the occupation. Where it specifies nothing, there is no separate 186 test for that item.
- Conditions no less favourable. Your terms and conditions must match what an Australian would receive for equivalent work at the same location.
- Regional provisional holders wait three years. A 494 or 491 holder must have held that visa for three years first. The agreement can set a shorter period.
- 482 time counts only if the agreement says so. Most agreements count time on a 482 granted under that same agreement. Time on a standard 482 generally does not transfer.
- Same nomination mechanics as the other streams. The employer nominates the position naming you. The nomination must be approved and not withdrawn, and the position still available at decision.
Who qualifies for the 186 Labour Agreement stream?
The stream has fewer fixed rules than Temporary Residence Transition or Direct Entry, because the agreement carries them instead. What the regulations themselves require is set out below; everything else is read from the deed the employer signed.
| Item | Fixed by the regulations | Set by the agreement |
|---|---|---|
| Employer | A party to a labour agreement that is in effect and specifies the occupation for permanent nomination | Which employer, which region, how many nominations per year |
| Occupation | Must be one the agreement names for the 186 | The list, and any ANZSCO or skill-level limits |
| Age | Under 45 at application unless the agreement sets a higher age | The concession, if any — some DAMA regions raise it as high as 55 |
| English | You satisfy any language test the agreement specifies, in the manner it specifies | The score, the tests, or a concession below competent English |
| Skills and experience | You have the qualifications, experience and attributes the agreement specifies; a skills assessment if the agreement requires one | The years of experience, the evidence, whether time on a 482 under the agreement is required |
| Salary and conditions | No less favourable than an Australian doing equivalent work at the same location | Any salary concession below the standard thresholds |
| Common criteria | Health, character, PIC 4020, licensing, no worker-exploitation conduct, onshore validity | Nothing — these apply in every stream. The six-month lodgement window of the TRT and Direct Entry streams does not apply here |
What we see in practice
As a visa agent in Sydney we treat every labour agreement 186 as two matters: the deed and the visa. Two employers in the same DAMA region can hold different terms. Each executes its own agreement under the head agreement. Read the employer's signed deed before promising a client any concession.
What kinds of labour agreement lead to a 186?
Five types exist. Not every agreement carries a permanent pathway, and a company-specific agreement is temporary-only unless a permanent stream was negotiated.
- Designated Area Migration Agreements (DAMA). A head agreement for a region, under which each employer signs its own agreement. Concessions on age, English, salary and experience are region-specific. Our DAMA programs pages cover each region.
- Industry labour agreements. Template terms for a whole industry. Dairy, fishing, meat, pork, horticulture, advertising, fine dining and ministers of religion among them. The template fixes the permanent-transition period and any concessions. The on-hire template has no permanent pathway.
- Company-specific agreements. Negotiated with one employer where no template fits. Temporary by default; a permanent pathway needs a business case and, above certain limits, Ministerial approval.
- Global Talent Employer Sponsored agreements. For niche, highly paid roles. A permanent pathway after three years.
- Project agreements. For designated infrastructure projects. Rare, and negotiated case by case.
A labour agreement is not appealable. The Department's decision to enter, or not enter, an agreement is not a reviewable migration decision. The nomination and visa decisions under an existing agreement are. Plan the agreement first; the visa follows.
Does time on a standard 482 count toward a labour agreement 186?
Generally no. A nomination under an agreement cannot be lodged until that agreement is executed. The published templates count the permanent-transition period as time on a 482 granted under the same agreement. A worker on a standard 482 who moves to a DAMA employer usually restarts the clock at the new nomination. Not from their first day in Australia.
- Check the deed, not the region. Some DAMAs have shortened their transition period; others count only time nominated under the agreement. The current deed governs.
- The TRT stream is the alternative. A 482 holder with two years' full-time employment with an approved sponsor may qualify under the Temporary Residence Transition stream without the agreement — but without its concessions on age and English.
- Direct Entry is the third route. A current skills assessment and three years' experience open the Direct Entry stream, again at standard age and English.
What does the employer show for a Labour Agreement nomination?
The nomination is lodged under the agreement and must satisfy the general nomination rules plus the agreement's own terms.
- The employer is a party to a labour agreement in effect. The agreement specifies the occupation as one that may be nominated for the 186.
- Any requirements the agreement places on the employer have been met — reporting, training benchmarks, workforce ratios, and the like.
- The number of nominations approved for the employer in the year is below the agreement's cap.
- No adverse information about the employer or an associated person. A satisfactory record of compliance with employment law, and licensing where the State requires it.
- The nomination fee and the Skilling Australians Fund levy paid with the application, and no outstanding levy debt. No levy is payable for a Labour Agreement nomination of a minister of religion or religious assistant.
Employer detail is on our labour agreement sponsorship and DAMA support pages.
How do you apply for the 186 Labour Agreement stream?
- AgreementThe employer holds an agreement in effect, or executes one under a DAMA head agreement. A labour agreement sponsor is not a Standard Business Sponsor.
- NominationThe employer nominates the position naming you, within the agreement's occupation list and yearly cap. Fee and levy paid.
- Visa applicationYou lodge against the approved nomination, in or outside Australia. Include the age, English, skills and experience evidence the agreement specifies.
Applying in Australia. An onshore applicant must hold a substantive visa, a Bridging A, B or C at the time of application. A Bridging E holder cannot lodge. The six-month lodgement window of the other streams is not written into this stream's criteria. The position must still be available at decision, and the agreement's cap is counted by year.
There is no fixed 186 visa labour agreement processing time. The Department publishes processing times monthly and they move with demand, so we do not print a figure here. The number that matters is the one on the day you lodge, and it is linked in the sources block below. What shortens the wait is a decision-ready file: the executed agreement, a nomination inside its occupation list and yearly cap, and the age, English and skills evidence the agreement specifies, all lodged together.
What are the common reasons a Labour Agreement case is refused?
- The agreement does not list the occupation for permanent nomination — many agreements list an occupation for the 482 only.
- The concession was assumed, not read — a 50-year-old nominee under an agreement with no age concession.
- The cap is exhausted — the employer's yearly nomination ceiling under the agreement has been reached.
- Time on a standard 482 was counted — the agreement required time nominated under the agreement itself.
- Evidence in the wrong form — the agreement says how skills or English are shown; the file used another route.
- Health and character left to a request — police certificates and health examinations not in the file on day one.
Review rights for a refused nomination or visa are on our employer-sponsored visa refusal page.
Can my family be included?
Yes. Your spouse or de facto partner and dependent children apply with you and become permanent residents on grant. Each meets the health and character criteria in their own right. An adult family member without functional English pays a second visa application charge instalment before grant.
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Frequently Asked Questions
What is the Subclass 186 Labour Agreement Stream visa?
The Subclass 186 Labour Agreement Stream allows skilled workers to obtain permanent residency in Australia through employer-sponsored labour agreements. The employer must hold an agreement in effect that names your occupation for permanent nomination. The agreement sets the age, English, skills and experience settings. The visa is permanent on grant.
Can I apply from outside Australia?
Yes, you can apply for the Subclass 186 Labour Agreement Stream visa from outside Australia if you meet the criteria. You may also be outside Australia when it is granted. Onshore, you must hold a substantive visa, a Bridging A, B or C when you apply.
Can I include family?
Yes, eligible family members can be included in your application. Your spouse or de facto partner and dependent children become permanent residents with you. Each meets health and character requirements in their own right.
What happens after the visa is granted?
Once granted, you will have permanent residency status and access to full work and study rights. The visa carries a five-year travel facility from grant. After that, re-entry needs a Resident Return visa or an Australian passport. No condition ties you to the employer, but the nomination was approved on a genuine position under the agreement.
Is there an age limit for the 186 Labour Agreement stream?
Under 45 at application, unless the agreement sets a higher age. Many DAMAs and some industry agreements do. If the agreement is silent, the standard rule applies and the TRT and Direct Entry exempt classes do not transfer. Read the employer's own deed, not the region's summary.
What English score do I need under a labour agreement?
Whatever the agreement specifies for your occupation, in the manner it specifies. Some agreements concede below the competent-English level; some require the standard IELTS 6.0 in each component. Where the agreement specifies nothing, there is no separate 186 English test in this stream.
Do I need a skills assessment for the Labour Agreement stream?
Only if the agreement requires one. Where it does, the assessment comes from the relevant assessing authority, or the body the agreement names. It must be within its validity period and no more than three years old.
Does my time on a standard 482 count toward a DAMA 186?
Generally no. A nomination under a DAMA cannot exist before the employer's agreement is executed. The published deeds count time on a 482 granted under the agreement. Some regions have shortened the period. Check the current deed for the employer's region before relying on earlier 482 time.
Can a labour agreement sponsor also use the TRT or Direct Entry streams?
Yes, for a worker who meets those streams' own criteria. The Labour Agreement stream is used when the concessions are needed. Age above 45, English below competent, or an occupation not on the standard lists. Where none is needed, TRT or Direct Entry may be simpler.
Is labour market testing required for a labour agreement 186 nomination?
Not as a 186 nomination criterion. Labour market need is tested when the agreement is negotiated, and again at each 482 nomination. The 186 nomination must satisfy the agreement's own terms and the general nomination rules.
Under a labour agreement, the deed decides. Read it before you plan the visa.
A free eligibility check tells you which stream fits your visa history. It also tells you whether the concessions you are counting on are in the employer's agreement.
Visa Advisor is a MARA-registered visa agent in Sydney, NSW. We work with labour agreement and DAMA employers and their nominees on the labour agreement stream Australia-wide.
Sources and last checked dates
- Migration Regulations 1994 — Schedule 2 Part 186 (Employer Nomination Scheme), Schedule 1 item 1114B and regulation 5.19 (approval of nominated positions), Compilation No. 288, 1 July 2026 (F2026C00667) currency checked 16 September 2026 open ↗
- Migration (Exemptions from Skill, Age and English Language Requirements for Subclass 186, 187 and 494 Visas) Instrument 2019 — LIN 19/216, Compilation No. 4, F2024C01274 currency checked 16 September 2026 open ↗
- Migration Regulations 1994 — regulation 1.15C (competent English) and the Migration (Specification of Language Tests, Test Scores and Passports) Instrument 2025 (F2025L00905); Migration Act 1958 sections 245AR and 245AS read 8 September 2026 open ↗
- Department of Home Affairs — Employer Nomination Scheme visa (subclass 186) checked 8 September 2026 open ↗
- Department of Home Affairs — salary requirements to nominate a worker (Core Skills Income Threshold) verified 19 August 2026 · page last updated 1 July 2026 open ↗
- Department of Home Affairs — visa fees and charges (current visa pricing table and estimator) checked 8 September 2026 open ↗
- Department of Home Affairs — visa processing times checked 8 September 2026 open ↗
The income threshold, the visa application charge, the Skilling Australians Fund levy, occupation lists and processing times change during a programme year. Confirm the current figure with the source before acting on anything on this page.