Looking to get permanent residency in Australia? You might be wondering about the differences between the 186 and 187 visa paths. These two visas can help you become a permanent resident, but they work differently and cover different parts of Australia.
The Subclass 186 visa works anywhere in Australia. The Subclass 187 visa focuses on specific regional areas like Western Australia, South Australia, Tasmania, and the Northern Territory. Both paths need an employer’s sponsorship, and you must be under 45 years old. Processing times vary by a lot—186 visas usually take 8–12 months, while 187 visas need 11–16 months to process.
Understanding these differences is vital part of choosing the right path. This matters whether you’re an employer who wants to sponsor skilled workers or a professional seeking permanent residency. Let’s help you figure out which option matches your needs better.
Key Features of 186 and 187 Visas
The 186 and 187 visas create paths to permanent residency through three streams: Temporary Residence Transition (TRT), Direct Entry (DE), and Labour Agreement.
The 186 visa, known as the Employer Nomination Scheme (ENS), lets skilled workers live and work anywhere in Australia. This visa allows you to sponsor eligible family members and enrol in Medicare. You can apply for Australian citizenship once eligible. The main applicant needs to pay an AUD 4,770 visa application fee.
The Direct Entry stream of the 186 visa requires you to:
- Get a positive skills assessment before submitting the application
- Have at least 3 years of relevant work experience
- Choose an occupation from the Core Skills Occupation List
- Show competent English with IELTS score of 6 or equivalent in each component
The 187 Regional Sponsored Migration Scheme (RSMS) visa has extra requirements:
- Your work must be in designated regional areas like Western Australia, South Australia, ACT, Tasmania, and Northern Territory
- You must stay in the regional area for two years after getting the visa
- The Regional Certifying Body in your area must approve your position
The training requirements mark a key difference between these visas. Employers who sponsor 186 visa candidates must meet training measures by spending 1% of payroll to train Australian citizens and permanent residents or giving 2% to an approved industry training fund. The 187 Direct Entry stream employers don’t need to meet this requirement.
The Temporary Residence Transition stream requires full-time work with your employer for at least 2 years while holding a subclass 457 or 482 visa. Both visas share these requirements:
- Age should be under 45 years at the time of application
- The position should be full-time and available for at least 2 years
- Your salary must match Australian market rates
The 186 visa takes 8-12 months to process, while the 187 visa needs 11-16 months.
Regional vs Metropolitan Work Requirements
Location requirements create a key difference between these two permanent residency paths. The 186 visa gives skilled workers complete freedom to work anywhere in Australia. The 187 visa takes a different approach by focusing on regional development with specific location rules.
The 187 visa considers several areas as regional zones. These include Western Australia, South Australia, the Australian Capital Territory, Tasmania, and the Northern Territory. In spite of that, some city areas have restrictions. Major metropolitan regions like Perth, Gold Coast, Sydney, Brisbane, Newcastle, Melbourne, and Wollongong don’t qualify as regional locations.
People with 187 visas must live in their designated regional area for two years after getting their visa. The employment rules are different between these visas too. Both visas require the job position to be available for at least two years, but 186 visa holders have more flexibility to change employers.
The 187 visa comes with stricter job conditions. Visa holders usually stay with their sponsoring employer in the same role during the first two-year period. If the employer can’t provide ongoing work, visa holders can look for another job within the regional area.
Employers with 187 visas must meet specific requirements:
- Pay market salary rates to sponsored workers
- Make sure employees work only in nominated jobs
- Be willing to show they really need overseas workers
The Department of Home Affairs has exclusive power to cancel either type of visa; employers can’t do this. Both visa types also give access to Medicare, study rights, and let holders sponsor eligible family members.
The 187 visa’s regional focus helps address skill shortages in regional Australia. These location requirements help develop regional areas and support local communities, especially when you have workforce shortages.
Eligibility Streams Compared
The 186 and 187 visas provide two main pathways to permanent residency through Temporary Residence Transition (TRT) and Direct Entry (DE) streams. Each pathway comes with its own set of requirements that match different applicant backgrounds.
TRT stream applicants must have a subclass 457 or 482 visa. They need to show full-time employment with their nominating employer for at least two years within the three years before applying. The nomination approval should happen within six months before the visa application.
Skilled workers with minimal or no Australian work experience can take the Direct Entry stream. DE stream applicants for both visa types must meet these requirements:
- A positive skills assessment in their nominated occupation
- At least three years of relevant work experience
- English language requirements
- Age below 45 years, unless exempt
The age requirement exemptions apply to several groups in both streams:
- University-level academics (Level A to E)
- Scientists and researchers at ANZSCO skill level 1 or 2
- Medical practitioners in regional areas
TRT stream applicants for the 187 visa must work in regional Australia during their qualifying period. The 186 visa lets applicants work anywhere in Australia, as long as their employer meets training requirements.
November 2023 brought changes that expanded permanent residency options. TSS visa holders from the short-term and labour agreement streams can now use the TRT stream. Nominated occupations just need to appear in ANZSCO rather than meeting skilled migration occupation list requirements.
Primary applicants and their family members must meet health and character requirements. Everyone aged 18 or above needs to read the Life in Australia booklet and sign the Australian Values Statement.
DE stream applicants need nomination from an employer running an active and lawful business in Australia. The 187 visa requires this nomination specifically from a regional Australian employer.
Comparison Table
| Feature | Subclass 186 Visa | Subclass 187 Visa |
| Geographic Coverage | Accessible nationwide | Designated regional areas only |
| Processing Time | 8-12 months | 11-16 months |
| Application Fee | AUD 4,770 | Not mentioned |
| Age Requirement | Under 45 years | Under 45 years |
| Location Restrictions | None—applicants can work anywhere in Australia | Work limited to designated regional areas (WA, SA, TAS, NT, ACT) |
| Post-Grant Obligation | None mentioned | Regional area residence required for 2 years |
| Training Requirements | Employers must spend 1% of payroll on training or contribute 2% to industry training fund | No training requirements apply |
| Regional Certification | Not required | Regional Certifying Body must approve position |
| Available Streams | – Temporary Residence Transition (TRT)- Direct Entry (DE)- Labour Agreement | – Temporary Residence Transition (TRT)- Direct Entry (DE)- Labour Agreement |
| Direct Entry Requirements | – Positive skills assessment- 3 years relevant work experience- Listed on Core Skills Occupation List- Competent English (IELTS 6) | – Positive skills assessment- 3 years relevant work experience- Regional area placement required |
| TRT Stream Requirements | 2 years full-time work with employer on 457/482 visa | 2 years full-time work with employer on 457/482 visa in regional area |
| Employment Flexibility | More options to change employers | Sponsoring employer commitment required for initial period |
Conclusion
Australian skilled workers can choose between two permanent residency pathways—the 186 and 187 visas. Each visa comes with its own benefits. The 186 visa lets you work anywhere in Australia, while the 187 visa supports growth in regional areas through targeted migration programmes.
Your career goals and location preferences will shape your visa choice. Professionals who want the freedom to work anywhere in Australia should consider the 186 visa, though their employers need to meet certain training rules. The 187 visa might be perfect if you’re happy to live in regional areas. It has simpler employer requirements, but you’ll need to stay in a regional area for two years.
Processing speed is another key factor to consider. The 186 visa usually takes 8-12 months, which is faster than the 187 visa’s 11-16 month timeline. Both visas share basic eligibility rules through their Temporary Residence Transition and Direct Entry streams. The age limits, skills assessments, and work experience requirements stay the same for both options.
These differences will help you pick the right visa for your situation. Both paths can get you permanent residency, Medicare benefits, and possible citizenship. The choice comes down to whether you want nationwide work options with the 186 visa or prefer to build your life in regional Australia with the 187 visa.