Australia — Work Authorization & Visas

## Who needs work authorization

Non-citizens require a visa to work in Australia. The Migration Act 1958 (Cth) establishes Australia's universal visa system, governing the entry into and presence in Australia of non-citizens and their right to work. Under the Act, all workers who are not Australian citizens require a visa to enter and work in the country. This requirement applies regardless of the length of stay or the nature of the work arrangement — whether employment, independent contracting, or temporary business activities.

Australian citizens and certain holders of specific visa categories (such as Australian permanent residents holding a permanent visa) generally have an unrestricted right to work. For all other foreign nationals, the right to work is controlled by visa conditions, and working without appropriate authorization exposes both the worker and the employer to administrative penalties, visa cancellation, and potential criminal liability.

## Administering authority

The Department of Home Affairs administers the Migration Act 1958 and the Migration Regulations 1994 (the principal subordinate instrument that prescribes visa classes, subclasses, criteria, and conditions). Visa decisions are made by the Minister for Home Affairs or delegates. Employer sponsorship approvals, nomination decisions, and compliance enforcement fall under the Department's remit.

The Migration Regulations 1994 set out the detailed criteria for each visa subclass, including skill requirements, English language thresholds, health and character standards, labour market testing obligations for sponsors, and the specific work rights (or restrictions) attached to each visa.

## Structure of Australia's work visa system

Australia's work authorization framework is visa-based and stratified by skill level, occupation, duration, and pathway. The system divides broadly into:

• Skilled migration visas — permanent and temporary pathways for workers in occupations on designated skilled occupation lists, typically requiring sponsorship by an Australian employer or nomination by a state or territory government. The principal temporary route is the Skills in Demand visa (subclass 482), which replaced the Temporary Skill Shortage (TSS) visa. Permanent skilled visas include the Skilled Independent visa (subclass 189), which is points-tested and does not require sponsorship, and the Employer Nomination Scheme (subclass 186) for direct employer-sponsored permanent residence.

• Regional skilled provisional visas — temporary visas tied to living and working in designated regional areas, with a pathway to permanent residence after meeting residence and work requirements. Examples include the Skilled Work Regional (Provisional) visa (subclass 491) and the Skilled Employer Sponsored Regional (Provisional) visa (subclass 494).

• Temporary activity and short-term work visas — for specific activities, events, or training (e.g., Temporary Work (International Relations) visa subclass 403, Temporary Activity visa subclass 408).

• Working Holiday and Work and Holiday visas (subclasses 417 and 462) — for young adults from partner countries engaging in tourism with incidental work.

• Student visas (subclass 500) — which carry restricted work rights (historically capped at a certain number of hours per fortnight during term, though recent amendments have varied the cap).

Each visa subclass is defined in Schedule 2 of the Migration Regulations 1994 and carries specific conditions. Condition 8107, for example, restricts the number of hours a student visa holder may work. Condition 8501 requires the holder to maintain adequate health insurance. Breach of a visa condition is a ground for visa cancellation under section 116 of the Migration Act 1958.

## Work without authorization — section 42 prohibition and sanctions

Section 42 of the Migration Act 1958 makes it an offence for a non-citizen to work in Australia while not holding a visa permitting work, or to work in breach of a condition restricting work. The Act also imposes parallel liability on employers: it is an offence under Subdivision C of Division 12 of Part 2 to allow an unlawful non-citizen to work, or to allow a lawful non-citizen to work in breach of their visa conditions, if the employer knows or is reckless as to the worker's status.

Employer sanctions include civil penalties and criminal prosecution for allowing work by unlawful non-citizens or in breach of visa conditions. The Department of Home Affairs conducts compliance investigations and may issue infringement notices, refer matters for prosecution, and cancel or refuse sponsorship approvals for employers found to have breached their obligations.

## Employer sponsorship and nomination obligations

For most temporary and permanent skilled work visas, an approved sponsor must nominate the position and the individual. Sponsorship approval requires the employer to demonstrate a genuine need for the overseas worker, meet training benchmarks (historically the "Skilling Australians Fund" levy or nomination training contribution charge), and commit to a suite of ongoing obligations under the Migration Regulations 1994, including:

• Paying market salary rates and ensuring equivalent terms and conditions of employment (regulation 2.79, 2.79A).
• Not recovering costs associated with sponsorship or migration from the worker (regulation 2.87).
• Notifying the Department of changes in circumstances, including early cessation of employment.
• Cooperating with Department inspectors.

Breach of sponsorship obligations can result in sponsor bar periods (preventing new approvals for up to five years), civil penalties, and referral to the Fair Work Ombudsman or other agencies.

## Cross-reference

For detailed analysis of visa condition breach and cancellation under section 116, see the termination-and-severance guide. For payroll, tax, and permanent establishment considerations when hiring foreign nationals in Australia (including the threshold at which a foreign employer triggers an Australian taxable presence), see the hiring-and-payroll-setup guide. For the independent contractor vs. employee tests that determine superannuation and payroll tax obligations, see the worker-classification guide.

Source: Migration Act 1958 (Cth) Source: Department of Home Affairs — Working in Australia Source: Department of Home Affairs — Skilled Migration Program

## Overview

The Skills in Demand (SID) visa (subclass 482) is Australia's principal temporary employer-sponsored work visa. It replaced the Temporary Skill Shortage (TSS) visa on 7 December 2024, retaining the subclass 482 number but fundamentally restructuring eligibility criteria, occupation lists, and processing pathways. The visa permits skilled overseas workers to live and work temporarily in Australia when an approved Australian employer cannot source a suitably skilled Australian worker for the nominated position. It operates through three distinct streams: Core Skills, Specialist Skills, and Labour Agreement.

The SID visa is governed by the Migration Act 1958 (Cth) and the Migration Regulations 1994, with detailed criteria in Schedule 2 and sponsor obligations in Division 2.19 of the Regulations. Occupations eligible for the Core Skills stream are prescribed in the Migration (Specification of Occupations—Subclass 482 Visa) Instrument 2024, which introduced the Core Skills Occupation List (CSOL) to replace the former Medium and Long-term Strategic Skills List (MLTSSL) and Short-term Skilled Occupation List (STSOL).

## Core Skills stream — occupation list and income threshold

The Core Skills stream is the primary route for skilled workers in occupations on the CSOL, which contains occupations across trades, healthcare, engineering, construction, and technology sectors, classified according to the Australian and New Zealand Standard Classification of Occupations (ANZSCO) framework.

To be eligible, the nominated worker must:

• Hold an occupation listed on the Core Skills Occupation List at the time of nomination (prescribed in the Migration (Specification of Occupations—Subclass 482 Visa) Instrument 2024);
• Receive guaranteed annual earnings of at least the Core Skills Income Threshold (CSIT). The Department of Home Affairs publishes the current threshold on its salary requirements page; as of May 2026 the threshold was AUD $76,515 for the 2025–26 program year (effective until 30 June 2026), indexed annually to Average Weekly Ordinary Time Earnings (AWOTE) under regulation 5.42A of the Migration Regulations 1994;
• Meet the Annual Market Salary Rate (AMSR) for the occupation and location — whichever of the CSIT or AMSR is higher is the effective salary floor. The Department assesses AMSR by reference to labour-market data, industry awards, enterprise agreements, and comparable Australian roles;
• Meet English-language requirements prescribed in the Migration (Language Test Requirements for Subclass 482 Visa) Instrument 2024;
• Hold any mandatory skills assessment prescribed for the occupation; and
• Be nominated by an approved sponsor under regulation 2.72 of the Migration Regulations 1994.

The visa may be granted for up to four years and is renewable if the sponsor and worker continue to meet the criteria. Certain occupations on the CSOL may be subject to caveats limiting eligibility to specific employment contexts.

## Specialist Skills stream — high-salary, occupation-flexible route

The Specialist Skills stream is designed for highly compensated executives, senior professionals, and technical specialists who command salaries well above the standard skilled-migration threshold. It does not rely on a fixed occupation list. Instead, eligibility is determined by the worker's guaranteed annual earnings and the occupation's ANZSCO classification.

To qualify, the worker must:

• Receive guaranteed annual earnings of at least the Specialist Skills Income Threshold (SSIT). As of May 2026, the Department's salary requirements page stated the SSIT was AUD $141,210 for the 2025–26 program year;
• Be nominated for an occupation classified in any ANZSCO major group except groups 3 (Technicians and Trades Workers), 7 (Machinery Operators and Drivers), and 8 (Labourers) (as prescribed in section 8 of the Migration (Specification of Occupations—Subclass 482 Visa) Instrument 2024); and
• Meet standard health, character, and English-language requirements.

The SSIT and CSIT are indexed annually on 1 July under regulation 5.42A of the Migration Regulations 1994. Nominations lodged on or after 1 July are assessed against the new threshold; applications lodged before that date are assessed under the prior year's figure. The visa may be granted for up to four years.

## Labour Agreement stream

The Labour Agreement stream is for workers nominated by employers who hold a labour agreement with the Australian Government, negotiated through the Department of Home Affairs under Subdivision 2.18.1 of the Migration Regulations 1994. Labour agreements are bespoke arrangements developed for industries, regions, or individual employers facing persistent skill shortages that cannot be met through the standard skilled-visa pathways. They permit concessions on salary thresholds, occupation lists, English-language requirements, or age limits, tailored to the specific labour-market need.

Labour agreements are used in aged care, agriculture, hospitality, and resource-sector operations. The terms of each agreement govern eligibility; there is no universal set of criteria for this stream.

## Employer obligations — salary, training contribution, and compliance

An Australian employer seeking to sponsor a worker under the SID visa must first obtain sponsorship approval as a Standard Business Sponsor under Division 2.12A of the Migration Regulations 1994, then lodge a nomination for the specific position and worker under regulation 2.72.

Ongoing sponsor obligations under Subdivision 2.19.1 include:

• Equivalent terms and conditions (regulation 2.79): The sponsor must ensure the worker receives the same terms and conditions of employment (including salary, leave, superannuation, and workplace entitlements) as would apply to an Australian citizen or permanent resident in an equivalent role. Salary must meet or exceed the higher of the CSIT (or SSIT) and the AMSR.
• Nomination Training Contribution Charge (NTCC): The Migration Regulations 1994 prescribe a nomination training contribution charge payable at the time of nomination. As of May 2026, the Department's guidance indicated the charge was AUD $1,200 for businesses with annual turnover under AUD $10 million, or AUD $1,800 for larger businesses, per nomination.
• Notification obligations: The sponsor must notify the Department within specified timeframes of any change in circumstances, including cessation of employment, change in duties, or a reduction in the worker's salary below the threshold.
• Prohibition on cost recovery (regulation 2.87): The sponsor may not recover from the worker any costs associated with sponsorship, nomination, or migration.
• Cooperation with inspectors (regulation 2.78): Sponsors must permit departmental inspectors to enter premises, interview workers, and examine employment records.

Breach of sponsorship obligations may result in civil penalties under Part 2, Division 12 of the Migration Act 1958, sponsor bar periods (preventing new approvals), or referral to the Fair Work Ombudsman.

## Pathway to permanent residence — subclass 186 Temporary Residence Transition stream

The SID visa provides a pathway to Australian permanent residence through the Employer Nomination Scheme (subclass 186) Temporary Residence Transition (TRT) stream. A worker who has held a subclass 482 visa and worked full-time for the sponsoring employer in the nominated occupation for at least two years may be eligible to apply for the subclass 186 TRT visa, subject to meeting age, English-language, health, character, and occupation-list criteria set out in Schedule 2 of the Migration Regulations 1994.

The two-year work requirement is prescribed in the subclass 186 criteria. Practitioners should note that the interpretation of what constitutes "qualifying employment" when a worker changes sponsors or experiences a gap in employment can be complex; the Department's policy guidance and the Migration Regulations 1994 should be consulted on a case-by-case basis.

Once granted, the subclass 186 visa confers permanent residence, full work and study rights, access to Medicare, and eligibility to apply for Australian citizenship after meeting residency requirements.

## Cross-reference

For the broader Migration Act 1958 framework, universal visa requirements, and employer sanctions for allowing unlawful work, see the Migration Act 1958 framework section in this guide. For permanent-establishment risk when hiring Australian workers remotely from offshore, payroll registration, and social-security withholding obligations, see the hiring-and-payroll-setup guide for Australia. For employee vs. independent contractor tests that determine superannuation obligations, see the worker-classification guide for Australia.

Source: Migration Act 1958 (Cth) Source: Migration Regulations 1994 (Cth), Schedule 2 and Division 2.12A–2.19 Source: Migration (Specification of Occupations—Subclass 482 Visa) Instrument 2024 Source: Department of Home Affairs — Skills in Demand visa (subclass 482) Source: Department of Home Affairs — Salary requirements to nominate a worker

## Overview and comparison with Temporary Residence Transition stream

The Employer Nomination Scheme (subclass 186) visa is Australia's principal permanent employer-sponsored skilled work visa. It confers permanent residence, full work rights, access to Medicare, and eligibility to apply for Australian citizenship after meeting residency requirements. The visa operates through three streams: Direct Entry, Temporary Residence Transition (TRT), and Labour Agreement. This section addresses the Direct Entry stream, which allows an Australian employer to nominate a skilled worker for permanent residence without requiring the worker to have held a prior temporary skilled visa in Australia.

The Direct Entry stream is governed by the Migration Act 1958 (Cth) and the Migration Regulations 1994, with detailed criteria in Schedule 2 and sponsor obligations in Division 2.19. It is distinguished from the TRT stream, which requires the worker to have held a subclass 482 (Skills in Demand) or subclass 457 (Temporary Work (Skilled)) visa and worked for the sponsoring employer in the nominated occupation for at least two years. The Direct Entry stream has no such prior-employment requirement but imposes more stringent skills-assessment, age, and occupation-list requirements.

## Occupation list — Core Skills Occupation List (CSOL)

A worker nominated under the Direct Entry stream must hold an occupation listed on the Core Skills Occupation List (CSOL) at the time of nomination. The CSOL is prescribed in the Migration (Specification of Occupations and Relevant Assessing Authorities—Subclass 186 Visa) Instrument 2024, which came into effect on 7 December 2024 and replaced the Medium and Long-term Strategic Skills List (MLTSSL) that governed subclass 186 applications lodged before that date.

The CSOL contains occupations across healthcare, engineering, construction, ICT, trades, and professional sectors, classified according to the Australian and New Zealand Standard Classification of Occupations (ANZSCO) framework. Each occupation is identified by a six-digit ANZSCO code. Section 7 of the 2024 Instrument sets out the full list; occupations include registered nurses, software engineers, accountants, chefs, electricians, and other roles identified by the Department of Home Affairs as addressing persistent skill shortages in the Australian labour market. Certain occupations on the CSOL may be subject to caveats that limit eligibility to specific employment contexts (for example, restricting an occupation to regional areas, businesses of a certain size, or positions that satisfy an international trade obligation).

Practitioners should consult the latest version of the Instrument at the time of nomination; the Department periodically amends the CSOL by updating the Instrument. An occupation that is removed from the CSOL after a nomination is lodged but before the visa decision is made may affect the application, subject to savings provisions in section 10 of the Instrument.

## Skills assessment requirement

The Direct Entry stream requires the worker to hold a skills assessment from the relevant assessing authority for the nominated occupation. The assessing authority for each CSOL occupation is prescribed in section 9 of the Migration (Specification of Occupations and Relevant Assessing Authorities—Subclass 186 Visa) Instrument 2024. Common assessing authorities include Engineers Australia (for engineering occupations), the Australian Computer Society (for ICT occupations), VETASSESS (for many professional and trade occupations), and Trades Recognition Australia (for selected trades).

The skills assessment must confirm that the worker's qualifications, experience, and competencies are suitable for the nominated occupation. Each assessing authority sets its own criteria, which may include specific educational qualifications, minimum years of post-qualification work experience, English-language proficiency, and occupational licensing or registration requirements. The assessment must be valid at the time of visa application; assessments typically remain valid for three years from the date of issue or until the expiry date specified on the assessment, whichever occurs first, as stated in the Department's policy guidance.

Workers applying through the TRT or Labour Agreement streams are generally exempt from the skills-assessment requirement, provided they meet the alternative criteria prescribed in the Migration Regulations 1994.

## Age requirement — under 45 at time of invitation

The Direct Entry stream imposes an age limit of 45 years. The worker must be under 45 years of age at the time the Minister invites them to apply for the visa (or, if no invitation is required, at the time the visa application is lodged), as prescribed in item 186.211 of Schedule 2 to the Migration Regulations 1994.

Exemptions from the age requirement are prescribed in legislative instruments made under subregulation 186.221(1). As of May 2026, exemptions applied to certain high-earning executives (where annual earnings exceeded the Fair Work high-income threshold for each of the prior three years), academics and scientists nominated for positions at Australian universities or research institutions, medical practitioners nominated for positions in regional Australia, and other classes of persons specified in the Migration (LIN 19/216: Exemptions from Skill, Age and English Language Requirements for Subclass 186, 187 and 494 Visas) Instrument 2019 (as amended). The Department's guidance and the relevant legislative instrument should be consulted for the current exemption categories.

## English-language proficiency — competent English

The Direct Entry stream requires the worker to demonstrate competent English, defined in the Migration Regulations 1994 as achieving specified minimum test scores on an approved English-language test (IELTS, PTE Academic, TOEFL iBT, or Cambridge English: Advanced). As of May 2026, the Department's guidance indicated that "competent English" for subclass 186 required an IELTS score of at least 6.0 in each of the four components (Listening, Reading, Writing, Speaking), or equivalent scores on the other approved tests.

The test must have been taken within three years immediately before the visa application is lodged. Workers who hold a valid passport issued by the United Kingdom, the United States, Canada, New Zealand, or the Republic of Ireland are exempt from the English-language test requirement, as they are deemed to be native English speakers under the Regulations.

Additional exemptions from the English-language requirement are prescribed in the Migration (LIN 19/216: Exemptions from Skill, Age and English Language Requirements for Subclass 186, 187 and 494 Visas) Instrument 2019, including for certain high-earning executives and other specified classes. Practitioners should verify the current exemption criteria when advising clients.

## Salary threshold and Annual Market Salary Rate (AMSR)

The nominating employer must guarantee that the worker will receive annual earnings of at least the Annual Market Salary Rate (AMSR) for the occupation and location. The AMSR is assessed by the Department of Home Affairs by reference to labour-market data, award rates, enterprise agreements, and comparable Australian salaries for the occupation. The Department's policy is that the salary offered to the overseas worker must be no less than the salary that would be paid to an Australian citizen or permanent resident performing equivalent work in the same location, as required by regulation 2.79 of the Migration Regulations 1994 (equivalent terms and conditions of employment).

Historically, the Department applied the Temporary Skilled Migration Income Threshold (TSMIT) as a floor for subclass 186 nominations; as of the transition to the Skills in Demand framework in December 2024, the relevant threshold is the Core Skills Income Threshold (CSIT) prescribed in regulation 5.42A of the Migration Regulations 1994. As of May 2026, the CSIT was AUD $76,515 for the 2025–26 program year (indexed annually on 1 July to Average Weekly Ordinary Time Earnings). The employer must demonstrate that the worker's guaranteed annual earnings meet or exceed the higher of the CSIT and the AMSR for the occupation.

The salary guarantee must be included in the nomination application and supported by evidence such as a letter of offer, employment contract, and payroll documentation demonstrating that comparable Australian workers in the business are paid at least the same amount.

## Employer sponsorship and nomination process

The employer must first obtain sponsorship approval as a Standard Business Sponsor under Division 2.12A of the Migration Regulations 1994. Sponsorship approval is valid for five years and permits the employer to nominate workers for temporary and permanent skilled visas. The employer must then lodge a nomination for the specific position and worker under regulation 5.19, demonstrating that:

• The position is genuine and corresponds to an occupation on the CSOL;
• The employer has a demonstrated need for the overseas worker and has made efforts to recruit locally (labour-market testing is no longer a universal requirement for subclass 186 nominations as of the 2024 reforms, but the Department retains discretion to request evidence of recruitment efforts);
• The worker will be paid at least the AMSR and will receive equivalent terms and conditions of employment to Australian workers;
• The employer is not subject to any sponsor bar or adverse compliance history.

The nomination must be accompanied by payment of the Nomination Training Contribution Charge (NTCC), prescribed in regulation 5.42 of the Migration Regulations 1994. As of May 2026, the charge was AUD $1,200 for businesses with annual turnover under AUD $10 million, or AUD $1,800 for larger businesses. The charge is payable for each nomination and is non-refundable except in limited circumstances set out in regulation 2.73AA.

Once the nomination is approved, the worker may lodge the visa application. The Department assesses the worker's skills, English language, age, health, and character against the criteria in Schedule 2 of the Migration Regulations 1994. Processing times vary; as of May 2026, the Department's published global processing times for subclass 186 applications ranged from several months to over a year depending on the stream and complexity.

## Ongoing sponsor obligations and compliance

Upon grant of the visa, the employer assumes ongoing obligations under Subdivision 2.19.1 of the Migration Regulations 1994, including:

• Equivalent terms and conditions (regulation 2.79): ensuring the worker receives the same salary, leave, superannuation, and workplace entitlements as Australian workers in equivalent roles;
• Prohibition on cost recovery (regulation 2.87): the sponsor may not recover from the worker any costs associated with sponsorship, nomination, or migration;
• Notification obligations: the sponsor must notify the Department within specified timeframes if the worker ceases employment, if the worker's duties or salary change materially, or if other circumstances affecting the nomination arise;
• Cooperation with inspectors (regulation 2.78): the sponsor must permit departmental compliance inspectors to enter premises, interview workers, and examine employment records.

Breach of sponsorship obligations may result in civil penalties under Part 2, Division 12 of the Migration Act 1958, sponsor bar periods (preventing new approvals for up to five years), and referral to the Fair Work Ombudsman or other enforcement agencies. The Department conducts random and targeted compliance investigations; employers should maintain contemporaneous records of salary payments, position descriptions, and compliance with award and enterprise-agreement obligations.

## Pathway to citizenship

Once granted, the subclass 186 visa confers permanent residence with full work and study rights, access to Medicare, and the right to sponsor eligible relatives for family migration. The visa holder may apply for Australian citizenship after residing in Australia for four years (including at least 12 months as a permanent resident), subject to meeting the residence, character, and English-language requirements prescribed in the Australian Citizenship Act 2007.

## Cross-reference

For the Migration Act 1958 framework governing all work visas and employer sanctions, see the Migration Act 1958 framework section in this guide. For the Skills in Demand visa (subclass 482), which provides a pathway to subclass 186 permanent residence through the Temporary Residence Transition stream, see the Skills in Demand visa section. For permanent-establishment risk when hiring Australian workers remotely from offshore, payroll registration, and social-security withholding obligations, see the hiring-and-payroll-setup guide for Australia. For employee vs. independent contractor tests that determine superannuation obligations, see the worker-classification guide for Australia.

Source: Migration Act 1958 (Cth) Source: Migration Regulations 1994 (Cth), Schedule 2 and Division 2.12A–2.19 Source: Migration (Specification of Occupations and Relevant Assessing Authorities—Subclass 186 Visa) Instrument 2024 Source: Department of Home Affairs — Employer Nomination Scheme (subclass 186) visa Source: Department of Home Affairs — Direct Entry stream