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Should I Seek Permanent Residency Under the Temporary Residence Transition or Direct Entry Stream?

If you are a skilled worker, you may be eligible for permanent residency under the Employer Nomination Scheme subclass 186 (ENS). The ENS requires an Australian employer to nominate you for permanent residency. There are two relevant pathways under the ENS that you may consider, the Temporary Residence Transition (TRT) or Direct Entry (DE) stream. Selecting the most suitable pathway depends on a number of factors, including your:     

  • age;
  • English language skills;
  • ability to obtain a positive skills assessment in an eligible occupation;
  • work experience;     
  • ongoing period of employment with your current Australian employer; and 
  • current visa status.     

This article will explain the difference in criteria between the TRT and DE streams, so that you can make informed decisions when applying for permanent residency as an employee. 

Your Age

Both the TRT and DE pathways require that you are under 45 years old when you submit a 186 visa. However, both streams also have age exceptions. 

TRT Scheme

If you meet any of the below criteria, you will be exempt from the age requirement for the TRT stream: 

CriteriaExplanation
Earn a high incomeYou work for a university in Australia as a lecturer, professor, dean head of faculty, research fellow or senior fellow.
Science applicantYou work for a government scientific agency as a researcher, scientist or technical specialist. You must have a Bachelor’s degree or higher qualification, a New Zealand Register Diploma or an AQF Associate Degree, Advanced Diploma or Diploma.

Alternatively, if you have three years of relevant experience, this category will still apply to you.
Academic applicantYou work for a university in Australia as a lecturer, professor, dean/head of faculty, research fellow or senior fellow.
Regional medical practitionerDuring the last three years, you have worked as a medical practitioner under the 457 or 482 visa and spent at least two of those years working in a designated regional area. Additionally, you must be nominated to continue working in a regional area.
Subclass 457/482 workerYou have held a subclass 457 or 482 visa for the past three years. Additionally, you must be working for your current Australian employer in the same nominated occupation and earning equal to or greater than the high-income threshold.
Subclass 457/482 Coronavirus concession workerYou have undergone a coronavirus employment change in the past three years. You must also have been working in the same occupation for the employer who is nominating you and be earning equal to or greater than the high-income and pro-rata thresholds.

You must also have held your subclass 457 or 482 for the past three years.
Transitional 457 worker under 50You must, on 18 April 2017, have held a subclass 457 or a successful application for one. Additionally, you must be below 50 years old on the day you make the TRT application.

DE Scheme

The DE stream has similar exceptions for the age requirement: 

CriteriaExplanation
Science applicantSee the table on age exemptions under the TRT stream. 
Academic applicantSee the table on age exemptions under the TRT stream. 
Subclass 444/461 workerYou must, in the three years before your application, have been working in your nominated position for the same employer for at least two of the years and, at all times during the 3 years, must have held a subclass 444 or 461.

English Language Skills

You need to have competent English at the time of your application for either stream. 

You can demonstrate your English skills by: 

  • holding a valid passport issued by the United Kingdom, the United States, Canada, New Zealand or the Republic of Ireland; 
  • obtaining the required scores in the relevant English test within three years before your application; or
  • prior to 16 November 2019, having studied full-time in English for at least five years. 
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Skills Assessment Requirement

You will only need to undertake the skills assessment if you apply through the DE stream. Only employees who apply under the DE stream are required to undertake the skills assessment. It is issued by third-party bodies, who will check that you have the skills set for your nominated occupation. These requirements will differ across different industries and jobs.

These requirements will differ across different industries and jobs.

For example, if you are working as an accountant, you may need to have a specific Bachelor’s degree and certificates. You may also need a certain level of experience working in accounting. 

As part of the skills assessment, you will have to: 

  • provide all the necessary paperwork to demonstrate that you have the correct skills; and
  • pay a processing fee.
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Relevant Employment Period

457 Visa Holders Before 18 April 2017

If you are a part of this category, special transitional arrangements will apply to you. You will need to demonstrate that you have worked for your current employer in your nominated occupation for two years.

457/482 Visa Holders After 18 April 2017 

If you are granted your visa after 18 April, you will need to demonstrate that you were employed for three years in your nominated occupation by the same employer nominating you for the 186 TRT stream. In contrast, the DE stream does not have this requirement.  

Work Experience

Additionally, both the TRT and DE streams require applicants to have at least 3 years of work experience in their nominated occupation.

Current Visa Status

You can only access the 186 TRT stream as an eligible 457, 482, or associated bridging visa holder. This is not a requirement for the 186 Direct Entry stream and you can apply as long as you meet the criteria.

This information is relevant as both streams offer distinct advantages based on your individual circumstances. For instance, you might find the 186 DE stream inaccessible because you cannot get a suitable skills assessment, which is not a requirement for the 186 TRT stream.

On the other hand, opting for the 186 DE stream could be appealing if you are 43 years old and want to access permanent residency. This is because the 186 DE stream does not require you to hold a 482 visa for 3 years before applying, which is generally a requirement for the 186 TRT stream.

Comparison Between TRT and DE

The table below will help you identify which stream is most appropriate for your needs by comparing the two different sets of criteria. Although they do share several commonalities, understanding the differences in each pathway will improve your ability to make an informed decision.

CriteriaTRTDE
Current visa statusYou must hold a 457, 482 or an associated bridging visaYou can hold any visa and be either inside or outside of Australia at the time of application.
Relevant employment periodUnless transitional arrangements apply, you must have spent three years working for your current employer in your nominated occupation. Not applicable
Work experienceYou must have three years of work experience in your nominated occupation for the same employer. You must have three years of work experience in your nominated occupation. This can be for different employers while holding any valid Australian visa with work rights or relevant overseas work experience. 
AgeYou must be under 45 years old, unless you qualify for an age exemption.Same as TRT. 
English language skillsYou must pass an English competency test or hold a passport issued by the United Kingdom, United States of America, Canada, New Zealand or the Republic of Ireland.Same as TRT. 
Skills assessmentNot applicable A positive skills assessment is mandatory.

Case Study

Below, we outline a hypothetical example that will help to explain how the criteria for different permanent residency pathways may be applied.

Consider Mariah, a 30-year-old food technologist from Canada with a Bachelor’s in Chemical Engineering. She holds a 417 visa, and her current employer wants to nominate her for the 186 visa. As a Canadian, Mariah is considered to have competent English. She also has three years of work experience as a Food Technologist working for a dairy company in Vancouver. However, her qualification is unsuitable as she didn’t have sufficient subjects in Food Science.

In this instance, Mariah could study additional courses relevant to food technology to get a positive skills assessment. On the other hand, she could request to be sponsored on a 482 visa for three years and then access the 186 Temporary Residence Transition stream once she meets the criteria.

Key Takeaways

Being eligible for a 186 visa under the Employer Nomination Scheme (ENS) may provide you with a pathway to permanent residency in Australia. However, meeting immigration criteria and gaining permanent residency can be a difficult and complex process. As a result, you should have a clear, informed understanding of what opportunities are available to you under the ENS. There are two streams available under this scheme, which are the Temporary Residence Transition (TRT) or Direct Entry (DE) streams. You should consider several factors when deciding which to apply to, as you must meet different criteria for each one. Some relevant considerations include:

  • current visa status;
  • age;
  • English language skills;
  • ability to pass the skills assessment; and
  • work experience.

If you would like advice on your options to transition to permanent residency, our experienced immigration lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.

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Francis Manuel

Francis Manuel

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