Subclass 494 or 186 ENS? Choosing an employer sponsored PR path

For anyone weighing subclass 494 vs 186 ENS, the difference that matters most is the timing of permanent residence. The subclass 186 Employer Nomination Scheme (ENS) gives permanent residence on grant. The subclass 494 is a five-year provisional visa tied to a regional employer, and it leads to permanent residence later through the subclass 191. Which one fits depends on where the job is, whether the occupation and employer qualify, and how quickly PR is needed.

Subclass 494 vs 186: the core difference

The subclass 186 (ENS) is a permanent employer sponsored visa. Once granted, the holder has permanent residence with no further employment or location condition attached to the visa itself.

The subclass 494 (Skilled Employer Sponsored Regional (Provisional)) is temporary. It runs for five years, requires nomination by an employer in a designated regional area, and obliges the holder to live and work in that region. It is the first step towards the subclass 191 permanent visa, which can be applied for after holding the 494 for at least three years and meeting the required income across that period. The Employer Sponsored stream also requires at least three years’ relevant work experience, and the holder may work only for the sponsoring employer.

The choice therefore comes down to this: the 186 is permanent residence now, where the employer and occupation qualify for it. The 494 is a longer regional route to permanent residence, often available where the 186 is not.

Who each visa suits

The subclass 186 suits an applicant whom an Australian employer can nominate for an eligible occupation, where the applicant already holds a subclass 482 (or 457) visa and has usually worked for that employer full time for at least two years (Temporary Residence Transition stream), or qualifies directly (Direct Entry stream). The Direct Entry stream draws on the Core Skills Occupation List (CSOL), and generally requires a suitable skills assessment and at least three years of relevant work experience. Our employer sponsored visas page sets out the streams in more detail.

The subclass 494 suits an applicant whose role sits in regional Australia, where the occupation or the employer’s location points towards the regional program rather than the ENS. It suits a worker who is prepared to settle in a regional community. We cover it in full on our subclass 494 regional employer sponsored visa page.

Both visas have an age requirement (generally the applicant must be under 45 at time of application) and both require a positive skills assessment for most occupations. Age exemptions are narrow. Confirm your position against the Department of Home Affairs before relying on one.

Occupation lists and skills

For the subclass 186 Direct Entry stream, the occupation must be on the relevant list for that visa and the applicant must hold a skills assessment from the nominated assessing authority. For the subclass 494, the occupation must be on the list that applies to the regional program.

The occupation lists are reviewed and can change, so check the current list for the exact ANZSCO occupation before an employer commits to a nomination. A skills assessment can take months, so start it early. Our skill assessment page explains what the assessing authorities look for.

Salary: the threshold and the market rate

Both visas require that the salary meets a minimum earnings threshold or the Annual Market Salary Rate for the role, whichever is higher. The market salary rate protects the local labour market: the employer cannot pay the sponsored worker less than an Australian worker doing the same job in the same location.

The minimum threshold depends on the visa. The subclass 494 uses the Temporary Skilled Migration Income Threshold (TSMIT) and the subclass 186 uses the Core Skills Income Threshold (CSIT). For nominations lodged from 1 July 2026 to 30 June 2027 both are $79,423, and both are indexed each 1 July (the TSMIT first indexes on 1 July 2027). Confirm the current figure on the Department of Home Affairs salary requirements page before lodging.

What the charges look like

The costs of each pathway sit in three places: the sponsorship, the nomination (the Skilling Australians Fund levy and, for some subclasses, a nomination fee, both paid by the employer), and the visa application.

A standard business sponsorship costs $420 (as at 5 July 2026, Department of Home Affairs, cost of sponsoring) and is a prerequisite for the employer.

For the subclass 494 there is no nomination fee: the fee for the 494 nomination form is nil under LIN 19/215, so the employer’s nomination-stage cost for a business with annual turnover under $10 million is the Skilling Australians Fund levy alone, $3,000 under the Migration (Skilling Australians Fund) Charges Regulations 2018. The main applicant’s visa application charge is $6,140 (as at 5 July 2026, Department of Home Affairs). Each additional applicant aged 18 or over is charged $3,070 (as at 5 July 2026, Department of Home Affairs) and each additional applicant under 18 is charged $1,535 (as at 5 July 2026, Department of Home Affairs).

For the subclass 186 Direct Entry stream, the $540 nomination fee (Department of Home Affairs, cost of sponsoring) plus the $3,000 Skilling Australians Fund levy for a business with annual turnover under $10 million comes to $3,540, and the main applicant’s visa application charge is $6,140 (as at 5 July 2026, Department of Home Affairs). An additional applicant aged 18 or over is charged $3,070 (as at 5 July 2026, Department of Home Affairs) and one under 18 is charged $1,535 (as at 5 July 2026, Department of Home Affairs).

The headline visa charge for the two visas is identical, and the 494 is slightly cheaper for the employer at the nomination stage because it carries no nomination fee. The real cost difference is downstream: the 494 route also involves a later subclass 191 application to reach permanent residence, while the 186 delivers PR in one step.

How to choose

Choose the subclass 186 where the employer and the occupation qualify for it and permanent residence without a provisional stage is the goal. Choose the subclass 494 where the job is regional, the 186 is not open, and the applicant is prepared to build towards permanent residence over several years while living in the region.

Visa Plan Lawyers advises employers and applicants on both pathways, including which one an occupation and location support and how to sequence the skills assessment, nomination and visa application. The wrong path chosen early can cost months. To talk through your situation, book a consultation or see our employer sponsored visas page.

General information only, current at the date shown. It is not legal advice on your situation. To get advice on your matter, book a consultation.