20/JAN/2025

186 Visa changes:
What employers and skilled workers need to know for 2025


Recent changes to the Employer Nomination Scheme (Subclass 186) visa reshaped the pathway to permanent residency (PR) for temporary skilled visa holders, specifically for skilled workers holding a 482 visa (previously the Temporary Skill Shortage visa, now the Skills in Demand visa).

These changes create new opportunities for skilled workers while requiring employers to adapt their recruitment and staff retention strategies.


Key changes to work experience requirements

To apply for PR via the Temporary Residence Transition (TRT) stream of the 186 visa, 482 visa holders must have been employed for at least two years (not including any periods of unpaid leave) within the three-year period immediately before the nomination application is made.

Under the previous system, 482 visa holders needed to work with the same sponsoring employer to become eligible for PR through the TRT stream. Recent reforms have fundamentally changed this requirement. Now, work experience gained under any approved sponsor counts toward the eligibility requirement for PR.

For example, if a 482 visa holder has worked for 18 months with their current sponsor and who previously worked for 6 months with another approved sponsor within the past three years would have accumulated the required two years of work experience. This combined experience now counts toward their eligibility for PR.


Implications for skilled 482 visa holders

These changes offer skilled 482 visa holders greater flexibility and bargaining power in the labour market. Workers are no longer ‘locked in’ to their current employer to maintain their progress toward PR under the TRT stream. The new system allows them to:

  • Combine work experience from different approved sponsors within the three-year window
  • Make strategic career moves without losing accumulated eligible work experience
  • Better respond to market opportunities and plan their career progression with greater flexibility, knowing that all eligible work contributes to their PR timeline


Implications for employers

For sponsoring employers, these changes create both challenges and opportunities that require careful consideration and strategic planning.

Understanding the new timeline

Employers need to recognise that potential employees may already have accumulated eligible work experience with previous sponsors. This means:

  • New hires might reach the two-year requirement sooner than expected
  • The timeline for PR applications may need to be discussed earlier in the employment relationship
  • Strategic planning for retention may need to begin from day one of employment


Retention strategies

With increased worker mobility, employers need to enhance their retention strategies. This becomes particularly important as workers approach their two-year eligibility mark. Consider:

  • Developing comprehensive career development plans
  • Creating engaging professional growth opportunities
  • Offering competitive compensation packages
  • Building a supportive and inclusive workplace culture


Permanent residency sponsorship

A clear stance on PR sponsorship becomes increasingly important as a retention tool. Employers should:

  • Develop transparent policies regarding PR sponsorship
  • Communicate these policies during recruitment and onboarding
  • Understand the timing requirements for transitioning workers to PR
  • Plan for the administrative requirements of sponsorship


Workforce planning

Since visa holders can now change employers without resetting their progress toward PR, organisations face a higher risk of losing key talent with little notice. This heightened mobility makes robust succession planning no longer just a good practice, but a critical business necessity. Organisations must develop plans that account for the potential departure of skilled workers at any point. This includes:

  • Implementing effective knowledge transfer processes
  • Maintaining strong relationships with recruitment partners who understand your industry and can respond rapidly to staffing needs
  • Developing detailed contingency plans for key positions that can be activated quickly if needed


The Bigger Picture

These changes to the 186 visa reflect Australia's commitment to creating a more flexible and attractive environment for skilled migrants while maintaining the integrity of the PR pathway.

For visa holders, the key is to carefully document all periods of employment with approved sponsors and maintain clear records of any unpaid leave to ensure accurate calculation of the two-year requirement.

For employers, success in this new environment requires a more holistic approach to talent management and recognising that they can no longer rely on visa requirements as a de facto retention tool. Instead, they must create genuine value propositions that make workers want to stay, while simultaneously maintaining robust plans for managing potential departures.

We specialise in making the migration process as smooth and stress-free as possible for employers and skilled workers alike.
Speak to us to find out more.

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