482 vs 186 vs Skills in Demand: Employer Sponsored Visa Comparison (2026)
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482 vs 186 vs Skills in Demand: Employer Sponsored Visa Comparison (2026)

F
First Migration Service
7 January 2026
10 min read
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The Australian migration landscape underwent a fundamental structural transformation with the full operationalization of the Skills in Demand (SID) visa framework in January 2026. This marks the definitive end of the era defined by the Temporary Skill Shortage (TSS) visa and the inauguration of a system predicated on "skills-first" mobility, tiered income thresholds, and enhanced labour market fluidity.

For employers and skilled workers alike, this shift represents a move from a compliance-heavy, restriction-based model to a competitive, talent-centric ecosystem. Understanding the comparative advantages, regulatory pitfalls, and strategic applications of each pathway is now critical for success.

This comprehensive comparison guide breaks down the costs, processing times, eligibility requirements, and PR pathways-synthesizing the legislative realities of 2026 including the indexed income thresholds, the implications of the 180-day mobility rule, and the critical operational nuances that can make or break your application.

Quick Comparison Table

FeatureSID - Core SkillsSID - Specialist Skills186 Direct Entry186 TRT
Visa TypeTemporary (up to 4 years)Temporary (up to 4 years)PermanentPermanent
Min Salary$76,515 (CSIT)$141,210 (SSIT)$76,515 (CSIT)N/A (based on temp visa)
Experience1 year (reduced from 2)Demonstrated by salary3 years post-qualification2 years with sponsor
Skills AssessmentUsually requiredNot requiredRequiredNot required
Occupation ListCSOL (456 occupations)No list (negative list)MLTSSLNo list requirement
Processing Time21-70 days7-14 days8-18 months5-12 months
PR PathwayYes (2 years)Yes (2 years)Immediate PRImmediate PR

Note: Salary thresholds, visa fees, and processing times shown are indicative as of January 2026 and are subject to change. Always verify current requirements with the Department of Home Affairs.


The 2026 Policy Shift: From "Control" to "Competition"

The Skills in Demand framework is built on three pillars that represent a fundamental policy pivot:

1. Certainty of Residency

The explicit policy objective is now to provide all skilled temporary migrants with a realistic prospect of permanent residency through the Subclass 186 ENS. The "permanently temporary" migrant class-created by the old short-term stream with no PR pathway-is gone.

2. Worker Mobility

The introduction of the 180-day period to find a new sponsor (up from 60 days) shifts the balance of power from employer to employee. This is designed to spur wage growth and prevent exploitation-but it also creates significant retention risks for employers.

3. The "Broken Rung" Correction

A critical reform was reducing the mandatory work experience requirement from 2 years to 1 year. This opens the sponsored work visa system to recent international graduates, allowing employers to capture talent earlier in the development cycle.


Option 1: Skills in Demand - Core Skills Stream

The Core Skills stream is the "workhorse" of the new system, catering to the vast majority of technical, professional, and trade roles. It functions similarly to the legacy Medium-Term TSS stream but with broader application and reduced experience requirements.

The Core Skills Occupation List (CSOL)

Eligibility is strictly binary: your occupation must appear on the Core Skills Occupation List.

SectorExample Occupations on CSOL
ManagementChief Executives (111111), Finance Managers (132211), Engineering Managers (133211)
TechnologyICT Project Managers (135112), Data Analysts (224114), Cyber Security Specialists
HealthcareRegistered Nurses, Physiotherapists, Medical Practitioners
TradesElectricians, Plumbers, Carpenters, Motor Mechanics
AgricultureDairy Cattle Farmers (121313), Apiarists (121311)

List Composition: As of January 2026, the CSOL contains approximately 450+ occupations. Jobs and Skills Australia (JSA) advises the government on additions and removals based on labour market data, so this number may change.

Key Requirements

RequirementDetails
Minimum salary$76,515 CSIT (2025-26, indexed annually to AWOTE)
OccupationMust be on CSOL
Skills assessmentRequired for most occupations
EnglishCompetent English (IELTS 5.0 each band or equivalent)
Experience1 year post-qualification (reduced from 2 years)
AgeUnder 45 at application

The 1-Year Experience Game-Changer

Strategic Implication: The reduction from 2 years to 1 year aligns the sponsored work visa system with post-study work rights. International graduates can now transition seamlessly from their 485 visa into the Core Skills stream, allowing employers to recruit promising graduates directly rather than importing only senior, expensive talent.

Processing Times

MetricTimeframe
50% processed in21 days
90% processed in70 days
Key variablesCSOL verification, LMT validity, skills assessment

Option 2: Skills in Demand - Specialist Skills Stream

The Specialist Skills stream represents the most radical departure from traditional Australian migration policy. It effectively introduces a "negative list" system for high-income earners, prioritising speed and flexibility over granular occupational scrutiny.

The "Negative List" Mechanism

Unlike almost every other skilled visa in Australian history, the Specialist Skills stream does not require your occupation to be listed on any legislative instrument. Instead, eligibility is determined by what you are NOT.

Eligible (ANZSCO Major Groups)Excluded
✅ 1: Managers (CEOs, CFOs, Specialist Managers)❌ 3: Trades Workers
✅ 2: Professionals (Engineers, IT, Doctors, Architects)❌ 7: Machinery Operators/Drivers
✅ 4: Community/Personal Services❌ 8: Labourers
✅ 5: Clerical/Administrative
✅ 6: Sales Workers

Future-Proofing: This mechanism eliminates the "ANZSCO lag." Emerging roles in Artificial Intelligence, quantum computing, or green energy finance-which may not yet have a dedicated ANZSCO code-are immediately eligible for sponsorship provided they command the requisite market salary. The role "Blockchain Architect" or "Generative AI Prompt Engineer" is eligible without needing to fit a 2013 occupation code.

Key Requirements

RequirementDetails
Minimum salary$141,210 (SSIT for 2025-26, indexed annually)
OccupationAny skilled occupation (ANZSCO 1-2, 4-6), except trades
Skills assessmentNot required
EnglishCompetent English (IELTS 5.0 or equivalent)
ExperienceDemonstrated by high salary
AgeUnder 45 at application

The Salary Calibration: The $141,210 threshold was set to align with the 90th percentile of Australian earnings, serving as a proxy for high skill capability. If the market is willing to pay this premium, the applicant is presumed to possess specialist skills.

The 7-Day Processing Advantage

The Department of Home Affairs has committed to a median 7-day processing standard for this stream.

MetricTimeframe
50% processed in7 days
90% processed in14 days
Key variables"Decision-ready" documents, Accredited Sponsor status

Processing times are indicative and subject to change. Times may vary based on application completeness and Department priorities. Check the DHA website for current global processing times.

Business Impact: For multinational corporations and agile tech firms, this stream allows for "Just-In-Time" talent deployment. Project teams can be assembled in Sydney or Melbourne with a lead time measured in weeks, not months.

"Decision Ready" Applications

To achieve 7-day processing, applications must be complete at lodgement:

RequirementStatus
Health examinations✅ Completed with HAP IDs attached
Police certificates✅ From every country of residence (last 10 years, 12+ months residence)
English test results✅ Valid IELTS/PTE attached
Sponsorship nomination✅ Valid nomination TRN linked

⚠️ Critical Warning: A single missing document moves the application from the "priority" queue to the "RFI" (Request for Information) queue, potentially adding 2-3 months to the timeline.


Option 3: Subclass 186 Direct Entry (Permanent Residency)

The 186 Direct Entry stream provides immediate permanent residency for skilled workers who do not meet the TRT criteria but have substantial overseas experience.

Key Requirements

RequirementDetails
Minimum salary$76,515 CSIT (market rate must also be met)
OccupationMust be on MLTSSL
Skills assessmentMandatory positive assessment (within 3 years)
EnglishCompetent English (IELTS 6.0 or equivalent)
Experience3 years full-time post-qualification
AgeUnder 45 at application

Processing Times

MetricTimeframe
50% processed in8 months
90% processed in12-18 months
Key variablesSkills assessment verification, genuineness checks

Strategic Use

The Direct Entry stream is best utilized for senior hires arriving from overseas who:

  • Demand PR as a condition of employment (e.g., C-suite executives)
  • Can pass the rigorous skills assessment
  • Have the requisite 3 years of experience
  • Cannot wait 2 years for TRT eligibility

Option 4: Subclass 186 TRT (Temporary Residence Transition)

The 186 TRT stream is the natural progression for SID visa holders. It rewards loyalty and demonstrated integration into the Australian workforce.

The Two-Year Qualifying Period

The defining feature of the 2026 TRT stream is the reduced qualifying period: applicants must work in their nominated occupation for 2 years (down from 3 years in earlier iterations).

RequirementDetails
Qualifying period2 years working for an approved sponsor
Same employerNominated by current employer, but time with previous sponsors may count
Skills assessmentNot required (already completed for temp visa)
EnglishAlready met for temporary visa
AgeUnder 45 at application

The "Approved Sponsor" Continuity Trap ⚠️

CAUTION

Critical November 2025 Reform: For work experience to count toward the 2-year requirement, the employer must have been an Approved Work Sponsor for the entire duration of the claimed employment.

The RiskThe Consequence
Employer's SBS expires-even for a few daysWork during the lapse is disqualified from the 2-year count
Gap between SBS expiry and renewalEmployee's PR eligibility clock effectively "pauses" or resets
Late SBS renewalMassive reputational damage and potential liability for employer

Compliance Imperative: Employers must maintain unbroken sponsorship approval. HR systems must track the 5-year SBS expiry date and ensure renewal is processed before expiration.

Processing Times

MetricTimeframe
50% processed in5 months
90% processed in10-12 months
Key variablesSponsor compliance history

Comprehensive Cost Comparison

Visa Application Charges (VAC) - As of July 2025

Visa fees are indexed annually on 1 July. The figures below were current from 1 July 2025. Please check the Department of Home Affairs fees page for the latest amounts.

Applicant TypeSID (482)186 (ENS)
Primary applicant$3,210$4,910
Adult dependent$3,210$2,455
Child under 18$805$1,230
Family of 4 (2 adults, 2 kids)$8,030$9,825

Skilling Australians Fund (SAF) Levy

The SAF levy is the most substantial "sunk cost"-a tax on the employer that cannot be recovered from the employee.

Business SizeSID (482) Levy186 Levy
Small (<$10M turnover)$1,200/year (max $4,800)$3,000 (one-off)
Large (≥$10M turnover)$1,800/year (max $7,200)$5,000 (one-off)

SAF levy amounts are set by the Migration (Skilling Australians Fund) Charges Act 2018 and may be subject to legislative amendment.

WARNING

The Mobility Risk: If an employer pays $7,200 for a 4-year SID visa, and the employee leaves after 6 months using the 180-day mobility rule, the employer effectively loses the balance of that levy. Refund provisions exist but are limited and bureaucratic.

Total Cost Summary

PathwayEmployer CostsApplicant Costs (Single)Total Investment
SID Core (4 years, large biz)$7,530 (nom + SAF)$4,015 (visa + assessment)~$11,545
SID Specialist (4 years, large biz)$7,530 (nom + SAF)$3,210 (visa only)~$10,740
186 Direct Entry (large biz)$5,540 (nom + SAF)$5,410 (visa + assessment)~$10,950
186 TRT (large biz)$5,540 (nom + SAF)$4,910 (visa only)~$10,450

The 180-Day Mobility Rule: Strategic Implications

The extension from 60 days to 180 days represents a fundamental shift in employer-employee dynamics.

What Changed

AspectLegacy TSSSkills in Demand
Time to find new sponsor60 days180 days
Work rights during graceLimitedFull work rights (any employer, any occupation)
Maximum grace periodN/A365 days over visa lifetime

For Workers

  • Career Safety: Senior roles face higher volatility. 6 months provides meaningful job search time.
  • Negotiation Leverage: Reduced friction in changing sponsors allows testing the market for better opportunities.
  • Free Agent Status: Executive search firms now aggressively target SID visa holders already in Australia.

For Employers

RiskMitigation Strategy
Employee leaves after 6 monthsContractual clawback clauses for relocation/visa fees (excluding SAF)
Lose SAF levy investmentSponsor 1-2 year terms initially; extend only after retention is proven
Poaching by competitorsRetention bonuses at 18-month mark; initiate 186 TRT as soon as eligible

Strategic Priority: The 180-day window makes retention strategies as critical as recruitment compliance. Initiate 186 TRT nominations as soon as the 2-year eligibility window opens-this is the only effective hedge against mobility risk.


The 186 vs SID Decision Matrix

For Employers

Your SituationBest OptionStrategic Rationale
Need to fill role urgentlySID Specialist7-day processing; "Just-In-Time" deployment
Standard skilled positionSID Core1-year experience opens graduate pipeline
Want to retain proven employee186 TRTPR locks them in; rewards loyalty
Hiring senior offshore talent186 Direct EntryImmediate PR attracts top candidates
Lower budget186 (either)Lower total SAF ($3-5k vs $4.8-7.2k)
High-value hire ($141k+)SID SpecialistNo skills assessment; no occupation list risk

For Skilled Workers

Your SituationBest OptionStrategic Rationale
Salary $141,210+SID Specialist7-day processing; no assessment; future-proofed
On temporary visa 2+ years186 TRTClear pathway; already qualified
Never sponsored before186 Direct EntryImmediate PR; no waiting
Recent graduate (1 year exp)SID CoreOpens pathway previously blocked
Occupation not on MLTSSLSID CoreCSOL has 456 occupations (broader)
Testing the marketSID Core180-day grace period provides flexibility

Need personalised advice? Every migration case is unique. Submit a free visa assessment → and our registered migration agents will review your situation.


Sectoral Strategic Analysis

Healthcare and Social Assistance

Scenario: A hospital group needs 50 Registered Nurses and 10 Specialist Surgeons.

RoleBest StreamWhy
Specialist SurgeonsSID SpecialistSalary >$141k; no occupation list friction; visa in 7 days
Registered NursesSID CoreRNs on CSOL; 1-year experience allows UK/Philippines grad nurses
Aged Care WorkersEssential Skills / Labour AgreementSalaries below $76.5k; union consultation mandatory

Technology and Cyber Security

Scenario: A fintech startup needs a Lead Developer and a Junior Coder.

RoleBest StreamConsiderations
Lead Developer ($160k)SID SpecialistNo need to fit specific ANZSCO; "Blockchain Architect" eligible
Junior Coder ($85k)SID CoreMust fit "Developer Programmer" ANZSCO; 21-day wait

Retention Warning: Pay retention bonuses at 18-month mark to prevent the Lead Developer from leveraging the 180-day mobility rule to jump to a bank.

Construction and Infrastructure

Scenario: A Tier 1 builder needs Civil Engineers and Electricians.

RoleBest StreamCritical Bottleneck
Civil EngineerSID CoreStraightforward; professional stream
ElectricianSID CoreMandatory TRA skills assessment adds 2-3 months before visa lodgement

Trade Reality: Skills assessment from Trades Recognition Australia (TRA) creates a bottleneck that makes "rapid" deployment of trades impossible compared to professionals.


Key Differences: Legacy 482 TSS vs New Skills in Demand

FeatureLegacy 482 TSSSkills in DemandStrategic Implication
Experience Requirement2 years1 yearOpens access to graduates; reduces reliance on senior hires
Mobility Window60 days180 daysCreates "free agent" market; increases retention risk
Path to PRRestricted (Medium-Term only)Universal (all streams)Ends "permanently temporary" status
Income ThresholdsSingle TSMIT (~$70k)Tiered: $141k / $76.5kBifurcates market; expedites high earners
Occupation ListsRigid (STSOL/MLTSSL)Negative list (Tier 1) / CSOL (Tier 2)Removes ANZSCO friction for high earners
Processing TimeStandard (months)7 days (Tier 1) / Standard (Tier 2)Enables agile workforce planning

Common Compliance Pitfalls

For Employers

MistakeConsequencePrevention
SBS expiry gapEmployee's TRT time resetsTrack 5-year SBS expiry; renew early
Paying below market rateNomination refusedObtain salary surveys / comparables
Missing Labour Market TestingNomination refused4 weeks on 2+ platforms; include salary
Recovering SAF levy from workerSponsorship cancellation; serious breachNever pass costs to employee
Not notifying cessation (28 days)Sanctions; possible sponsor barImmediate notification system
Late 186 TRT nominationLose employee to competitorsInitiate at 2-year mark

For Workers

MistakeConsequencePrevention
Assuming bonus counts toward $141kVisa refusedOnly guaranteed salary counts
Changing occupation without new nominationVisa breachNomination must match actual duties
Working for different employerImmediate visa breachSponsored work only
Waiting too long after job lossBecoming unlawfulAct within 180-day window
Not checking employer's SBS statusTRT time may not countRequest confirmation of SBS validity

Strategic Recommendations

For Employers

  1. Audit Sponsorship Status Now Immediately verify the expiry date of your Standard Business Sponsorship. Ensure there is no gap between expiry and renewal.

  2. Leverage the Specialist Stream For any role paying over $141,210, abandon the Core stream. The Specialist stream removes occupation list risk and skills assessment delays.

  3. Contractual Clawbacks Update employment contracts to include enforceable repayment clauses for relocation and visa application fees (excluding SAF) if the employee leaves within 12-24 months.

  4. Early PR Transition Do not wait for the 4-year visa to expire. Initiate 186 TRT nominations as soon as the 2-year window opens. This is the only effective hedge against retention risks.

  5. Minimize SAF Exposure Consider sponsoring 1-2 year terms initially rather than 4 years to reduce levy exposure until retention is proven.

For Workers

  1. Negotiate Guaranteed Salary If targeting the Specialist stream, ensure your base salary (excluding bonus/commission) meets the $141,210 threshold.

  2. Track Your Employer's SBS Status Your 2-year count toward 186 TRT only counts if your employer was an Approved Sponsor continuously.

  3. Leverage the 180-Day Window If considering a move, you have 6 months with full work rights. Use this negotiating leverage wisely.

  4. Push for 186 TRT at 2 Years Request your employer nominate you for 186 TRT as soon as you hit the 2-year mark-before you become a target for competitors.


How First Migration Can Help

The 2026 Australian migration system is a high-stakes environment. The Skills in Demand visa offers unprecedented speed and access to talent, but it transfers significant risk to both employers and workers. Success requires treating immigration policy as a core component of competitive advantage.

At First Migration Service Centre, our registered migration agents specialise in employer-sponsored visas and can help you navigate this complex landscape:

For Employers:

  • SBS compliance audits and renewal management
  • Strategic pathway selection (Specialist vs Core vs 186)
  • Compliant nominations with salary benchmarking
  • Retention-focused 186 TRT timing strategies
  • SAF levy optimization

For Skilled Workers:

  • Occupation eligibility assessment across CSOL/MLTSSL
  • Specialist Skills threshold analysis
  • PR pathway timeline planning
  • Employer compliance verification
  • 186 TRT nomination coordination

Ready to take the next step? We invite you to submit a free visa assessment so we can understand your situation and provide tailored advice.

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