Two employer-sponsored visas. Between them, one decision shapes the next five years of your life.
The 186 vs 494 question comes down to a single trade-off, and most comparisons miss it.
The Employer Nomination Scheme visa (subclass 186) grants permanent residence from the moment it is decided.
By contrast, the Skilled Employer Sponsored Regional (Provisional) visa (subclass 494) does not.
Instead, it is provisional for five years.
So if you qualify for a 186, the 186 is almost always the better visa.
Therefore the real question is whether you qualify.
This 186 vs 494 guide compares both on eligibility, cost, location, timing and the route to residence.
Key takeaways
- The 186 vs 494 choice is permanent residence now against provisional status for at least three years.
- Both cost AUD $6,140 for the primary applicant from 1 July 2026, up from AUD $4,910.
- You can live anywhere on a 186. A 494 restricts you to a designated regional area.
- Its Temporary Residence Transition stream usually needs no skills assessment, while a 494 always does.
- After three regional years, a 494 leads to permanent residence via the subclass 191 visa.
- That 191 costs only AUD $630 and has no legislated minimum income. You provide tax notices, not a salary figure.
- The 494 has no separate nomination charge, so employer costs are slightly lower than for a 186.
- Employer-sponsored places grew to 58,040 in 2026-27. Regional places fell to 14,110.
The right answer depends on your employer’s location, your visa history and your age. A few minutes on our free assessment will narrow it down.
Take the Free Visa Assessment →What’s in this guide
- 186 vs 494 side by side
- 186 vs 494: what the subclass 186 requires
- 186 vs 494: what the subclass 494 requires
- 186 vs 494 cost comparison
- The 186 vs 494 regional condition explained
- From 494 to 191: the permanent step
- The allocation gap nobody mentions
- 186 vs 494: who each visa actually suits
- Mistakes in a 186 vs 494 decision
- Frequently asked questions
186 vs 494 side by side
First, every row below is populated for both visas, so you can compare like with like.
This is the comparison in full. Everything after it simply explains the rows.
| Factor | Subclass 186 ENS | Subclass 494 Regional |
|---|---|---|
| Visa status | Permanent from grant | Provisional, 5 years |
| Where you can live | Anywhere in Australia | Designated regional area only |
| Route to PR | Immediate | Subclass 191 after 3 regional years |
| Employer location | Anywhere | Designated regional area |
| Streams | Direct Entry · Temporary Residence Transition · Labour Agreement | Employer Sponsored · Labour Agreement |
| Skills assessment | Direct Entry yes · TRT usually not | Yes, always |
| Work experience | Direct Entry 3 years · TRT 2 years with the sponsor | 3 years skilled employment |
| Age limit | Under 45, exemptions apply | Under 45, exemptions apply |
| English | Competent | Competent |
| Salary floor | CSIT AUD $79,423 and market rate | CSIT AUD $79,423 and market rate |
| Regional body advice | Not required | Regional Certifying Body advice required |
| Visa charge, primary | AUD $6,140 | AUD $6,140 |
| Nomination charge | AUD $540 | None |
| Tied to employer after grant | No | Yes, in practice |
All figures correct as at 19 August 2026. Confirm current charges with the Department of Home Affairs before lodging.
186 vs 494: what the subclass 186 requires
The Employer Nomination Scheme visa (subclass 186) has three streams that look similar and are not.
Consequently, which stream you fall into decides most of the answer before you compare anything else.
Temporary Residence Transition
Typically, this is the most common route and the easiest of the two main streams to satisfy.
To use it, you must have worked full-time for the nominating employer for at least two years on a 482 or 457 visa.
That requirement dropped from three years to two on 25 November 2023, which materially widened access.
The same instrument opened the stream to all 482 holders, including the Short-term stream.
Moreover, a skills assessment is usually not required, and the age and experience tests are more flexible.
Applicants aged 45 or over may access an age exemption if they earned the Fair Work High Income Threshold.
That threshold rose to AUD $190,100 on 1 July 2026, so the bar for the exemption moved with it.
Direct Entry
By contrast, Direct Entry suits applicants who have never held a 482, or have not held one long enough.
It requires a positive skills assessment, plus at least three years of relevant work experience.
Importantly, the assessment must be no more than three years old at the date you lodge.
Notably, this is the stream that takes people offshore straight to permanent residence.
Labour Agreement
This is used where a Designated Area Migration Agreement or industry labour agreement applies.
It is comparatively rare. Moreover, it carries its own negotiated concessions on English, salary and skills.
186 vs 494: what the subclass 494 requires
The 494 replaced the old subclass 187 Regional Sponsored Migration Scheme on 16 November 2019.
In short, it lets regional employers sponsor skilled workers where no suitably skilled Australian is available.
Notably, the requirements are closer to the 186 Direct Entry stream than to the transition stream.
- A positive skills assessment in your nominated occupation
- At least three years of skilled employment in that occupation
- Competent English
- Under 45 at application, with limited exemptions
- A nominating employer operating in a designated regional area
- Advice from a Regional Certifying Body confirming the position and salary
- Salary meeting both the Core Skills Income Threshold and the annual market salary rate
The Regional Certifying Body step is the one applicants consistently underestimate.
Specifically, it adds a separate body, a separate timeline and a separate chance for the nomination to fail.
In practice, Millennium Migration builds that approval into the timeline from day one.
186 vs 494 cost comparison
Cost is where the 186 vs 494 comparison surprises people most. After all, the two are almost identical.
Notably, visa application charges rose on 1 July 2026, by roughly 25% across most subclasses.
| Charge | Subclass 186 | Subclass 494 |
|---|---|---|
| Primary applicant | AUD $6,140 | AUD $6,140 |
| Previous charge, to 30 June 2026 | AUD $4,910 | AUD $4,910 |
| Additional applicant 18 or over | AUD $3,070 | AUD $3,070 |
| Additional applicant under 18 | AUD $1,535 | AUD $1,535 |
| Sponsorship application, employer | AUD $420 | AUD $420 |
| Nomination charge, employer | AUD $540 | None |
| SAF levy, turnover under $10m | AUD $3,000 one-off | AUD $3,000 one-off |
| SAF levy, turnover $10m or more | AUD $5,000 one-off | AUD $5,000 one-off |
| Later: subclass 191 | Not applicable | AUD $630 |
Correct as at 19 August 2026. Sponsorship approval lasts up to five years and covers multiple nominations, so that fee is not a per-hire cost.
Importantly, the charge that applies is the one in force on the day you lodge and pay.
So an application lodged on 30 June kept the old charge, even if it is decided months later.
On headline cost the two visas are close to identical, which surprises people expecting the regional visa to be cheaper.
In fact, for the employer the 494 is marginally cheaper, because it carries no nomination charge.
What the second application really costs
The obvious objection is that the 494 needs a second application later. Indeed, that is true.
However, the subclass 191 costs AUD $630 through the Regional Provisional stream.
As a result, that is roughly a tenth of the charge you already paid. The extra step is cheap in money terms.
Consequently, the real cost of the 494 is not dollars.
It is three years of restricted location and a delayed start to citizenship.
Finally, budget separately for skills assessment and English testing.
Health checks, police certificates and professional fees sit on top of that.
Employer in a regional area, or not sure?
Send us the postcode and we’ll tell you which visas are open.
The 186 vs 494 regional condition explained
Here is where 186 vs 494 stops being a paperwork question and becomes a life question.
In practice, designated regional Australia is broader than most people assume.
Specifically, it covers everywhere in Australia except Sydney, Melbourne and Brisbane.
For example, Perth, Adelaide, Hobart, Canberra, Darwin, the Gold Coast and Newcastle all count.
So a 494 does not necessarily mean a small country town.
It often means a capital city that is simply not one of the big three.
Still, postcode lists change by legislative instrument, so verify your location before relying on this.
Millennium Migration checks the current instrument against the employer’s postcode before advising either way.
Separately, a 494 carries a condition requiring you to live, work and study only in a designated regional area.
Breaching it puts both your visa and your later 191 application at risk, and the Department does check.
From 494 to 191: the permanent step
The Permanent Residence (Skilled Regional) visa (subclass 191) is where a 494 becomes permanent.
By contrast, there is no equivalent second step on the 186 side. That is the whole difference.
First, you must have held the 494 for at least three years and complied with its conditions.
Importantly, that three-year clock runs from the grant date of the 494, not from your arrival.
You must also have lived and worked in a designated regional area throughout that period.
Then you provide ATO notices of assessment for three income years out of your five-year visa period.
The $53,900 figure you may have read is wrong
A great deal of online content still states that the subclass 191 visa carries a minimum taxable income of around AUD $53,900. That figure was the old Temporary Skilled Migration Income Threshold, borrowed operationally and never enacted for this visa.
The regulation permits the Minister to specify an amount by legislative instrument. No such instrument has been made, and the Minister’s office confirmed in writing in June 2023 that there is no requirement to meet a minimum amount. There is therefore no prescribed minimum income for the 191. You provide the notices of assessment; there is no salary figure to hit.
Consequently, this matters for anyone weighing a 494 against a longer wait for a 186.
It removes a risk that many applicants believe exists and plan expensively around.
Even so, confirm the position before you rely on it, since an instrument could be made at any time.
Millennium Migration re-checks this at lodgement rather than trusting a position confirmed months earlier.
Finally, once the 191 is granted, all location restrictions fall away and no sponsor is required.
The allocation gap nobody mentions
Now for the part of the 186 vs 494 decision that most comparisons leave out entirely.
The 2026-27 Migration Program moved the two categories in opposite directions.
Employer-sponsored places rose from 44,000 to 58,040, a gain of 14,040 or about 32%.
Meanwhile regional places fell from 33,000 to 14,110, a cut of 18,890 or about 57%.
Note those figures do not net out. This was a reallocation across the whole program, not a straight transfer.
The 186 sits in the category that grew. The 494 sits in the category that shrank.
Still, that changes no eligibility criterion, and it does not close the 494.
However, it does mean the two pathways are moving apart in government priority.
Millennium Migration treats allocation trends as context for timing, never as a substitute for eligibility.
186 vs 494: who each visa actually suits
The subclass 186 suits you if
- You have worked for your sponsor on a 482 for two years or more
- Your employer is in a major city, or anywhere at all
- You want permanent residence without a provisional period
- You need the freedom to change employer or city after grant
- You hold a positive skills assessment and three years of experience, for Direct Entry
- You are 45 or over but earned the Fair Work High Income Threshold on a 482
The subclass 494 suits you if
- Your employer operates in a designated regional area
- You do not yet meet the two-year requirement for the 186 transition stream
- Your occupation is available for the 494 but not for a 186 pathway you can reach
- You are genuinely willing to live regionally for at least three years
- You would otherwise have no employer-sponsored permanent option at all
Notice the asymmetry. One list is about advantages. The other is mostly about constraints.
In practice, Millennium Migration frames the question that way with clients, because it avoids false hope.
In short, the 494 is rarely chosen over an available 186.
However, it is chosen when the 186 is not available, and on those terms it is a genuinely good visa.
Mistakes in a 186 vs 494 decision
Assuming the regional visa is cheaper. The applicant charges are identical, and the 494 needs a second application later.
Planning around a 191 income threshold that does not exist. Covered above, and still widely repeated.
Treating Perth or Adelaide as non-regional. Both are designated regional, which opens options people discount.
Underestimating the Regional Certifying Body step. Indeed, it is a separate approval with its own timeline.
Lodging just before 1 July. Timing around a fee increase is worth real money in either direction.
Forgetting the salary must clear two tests. The income threshold and the market rate both apply.
Equally, each is cheap to avoid beforehand and expensive to fix after a nomination is refused.
Getting a 186 vs 494 decision reviewed
Millennium Migration works on both visas from offices in Melbourne and Adelaide.
Because it is expensive to reverse, this decision is worth reviewing properly.
Sam Lotfollahi, Registered Migration Agent MARN 0901704, has seventeen years of casework experience.
On an employer-sponsored file the first question is usually whether the 186 is genuinely out of reach.
Often it is not. Indeed, waiting a few months for the transition stream beats five provisional years.
Millennium Migration also works with employers directly on sponsorship and nomination.
There, the most common problem is a job offer made before anyone has checked the rules.
No registered agent can guarantee a nomination or a visa grant. Treat any such promise as a warning sign.
Frequently asked questions
Choosing between 186 vs 494
Is the 186 or the 494 better?
Neither is universally better, but the subclass 186 grants permanent residence immediately while the subclass 494 is provisional for five years and restricts you to a designated regional area. If you qualify for a 186, it is usually the stronger option. The 494 exists for applicants who cannot yet reach a 186.
Can I move from a 494 to a 186?
It is possible in principle, but the 494 is designed to lead to permanent residence through the subclass 191 visa rather than the 186. Holders face restrictions on applying for other skilled visas until they have worked three years in a designated regional area. Get advice before assuming a switch is available.
Which is faster to permanent residence?
The subclass 186, by a wide margin. It is permanent from grant. The 494 requires three years of regional residence and employment before you can apply for the subclass 191, and that 191 application then has its own processing time.
Cost and requirements
How much does each visa cost?
Both charge AUD $6,140 for the primary applicant from 1 July 2026, up from AUD $4,910, plus AUD $3,070 for an additional applicant aged 18 or over and AUD $1,535 for a child under 18. Employers also pay the Skilling Australians Fund levy, a one-off AUD $3,000 for businesses turning over under AUD $10 million and AUD $5,000 above that.
Does the 494 have a nomination charge?
No. Unlike the subclass 186, which carries a AUD $540 nomination charge, the subclass 494 has no separate nomination application charge. The employer still pays the sponsorship application fee and the Skilling Australians Fund levy, so total employer cost for a 494 is slightly lower than for a 186.
Do I need a skills assessment for both?
The subclass 494 always requires one. For the subclass 186, the Direct Entry stream requires a positive skills assessment no more than three years old plus three years of experience, while the Temporary Residence Transition stream usually does not, provided you have worked for the sponsor for two years on a 482 or 457 visa.
What salary is required?
Both require the position to pay at least the Core Skills Income Threshold, which is AUD $79,423 from 1 July 2026, and at least the annual market salary rate for that role. Whichever is higher applies. The threshold must be met through guaranteed annual base earnings, not superannuation or benefits.
Regional rules and the 191
Is Perth or Adelaide regional for a 494?
Yes. Designated regional Australia covers everywhere except Sydney, Melbourne and Brisbane, so Perth, Adelaide, Hobart, Canberra, Darwin, the Gold Coast and Newcastle are all included. Postcode definitions change by legislative instrument, so confirm your specific location before relying on this.
Is there a minimum income for the 191 visa?
No. The regulation allows the Minister to specify an amount by legislative instrument, but no such instrument has been made. Applicants provide ATO notices of assessment for three income years out of five, without needing to reach a set figure. Figures such as AUD $53,900 that still circulate online came from the old Temporary Skilled Migration Income Threshold and were never enacted for this visa.
How much does the 191 visa cost?
AUD $630 for the primary applicant through the Regional Provisional stream, which is the route almost all 494 and 491 holders use. That is roughly a tenth of the original visa charge, so the second application is inexpensive relative to the first.
What happens if my 494 employer closes down?
You would generally need to find another approved sponsor within a limited period or apply for a different visa to remain lawfully in Australia. A new sponsor pays a pro-rated Skilling Australians Fund levy based on the time left on your visa. Because the timeframe is short and the consequences are serious, speak to a registered migration agent as soon as the situation arises.
Find out whether the 186 is really out of reach
Most people choose the 494 because they think they have to. Often they do not.
Related reading
- The 2026-27 Migration Program explained
- Skilled visa points test 2026: how to calculate your score
- Software engineer skilled visa: ANZSCO 261313 and the ACS deduction
- All Australian visa pathways we handle
Sam Lotfollahi
Registered Migration Agent · Principal, Millennium Migration · MARN 0901704
Sam has seventeen years of casework experience across skilled, employer-sponsored, family, student and humanitarian visas, and leads Millennium Migration from offices in Melbourne and Adelaide. He works directly on client files rather than passing them down a chain.
Sources
All charges, thresholds and program figures are correct as at 19 August 2026. Visa charges, income thresholds, regional postcode definitions and program settings change — always confirm current requirements before you act.
- Department of Home Affairs — Employer Nomination Scheme visa (subclass 186), Skilled Employer Sponsored Regional (Provisional) visa (subclass 494) and Permanent Residence (Skilled Regional) visa (subclass 191). Verified 19 August 2026.
- Migration Regulations 1994 — subclass 191 income criterion and the instrument-making power; Core Skills Income Threshold from 1 July 2026.
- Department of Home Affairs — visa application charges effective 1 July 2026.
- Migration Legislation Amendment (Expanding Access to Temporary Residence Transition Stream) Instrument (LIN 23/078) 2023, commencing 25 November 2023.
- Exemptions from Skill, Age and English Language Requirements for Subclass 186, 187 and 494 Visas — Instrument LIN 19/216, 2019.
- Department of Employment and Workplace Relations — Skilling Australians Fund levy.
- Fair Work Commission — High Income Threshold from 1 July 2026.
- Department of Home Affairs — Permanent Migration Program planning levels 2026-27.
- Office of the Migration Agents Registration Authority — Register of Migration Agents.
This article is general information only and does not take your personal circumstances into account. It is not legal or migration advice. Visa charges, income thresholds, occupation lists, regional postcode definitions and program settings change frequently — always confirm current requirements with the Department of Home Affairs before you act. Accurate as at August 2026. For advice about your own situation, start with our free visa assessment or speak with Sam Lotfollahi, Registered Migration Agent MARN 0901704.