Permanent Residency in Australia: A Migrant's Plain-English Guide to the Main Pathways

There is a moment most migrants on temporary visas reach, usually somewhere between six months and two years in Australia, where the question stops being "how do I settle in?" and becomes "how do I stay permanently?" The system that answers that question is large, bureaucratic, and changes regularly. Migration agents make careers out of navigating it.

This guide is not a substitute for professional migration advice, and SettleMate is not a registered migration agent. What this guide does is explain — in plain English — how the main permanent residency pathways work, what they generally require, and what is changing in the system right now. The goal is for you to arrive at any conversation with a MARA agent already understanding the landscape, so you can ask better questions and make more informed decisions.

One thing worth saying upfront: the 2026 Federal Budget, handed down on 12 May 2026, included significant changes to how Australia plans to manage its migration program going forward. Those changes affect how you think about your options right now. This guide explains what we know so far.

📋 Overview: What Permanent Residency Actually Gets You

Australian permanent residency gives you the right to live and work in Australia indefinitely. With it, you can:

Work for any employer in any industry without any restrictions, change jobs freely, and live anywhere in the country. Access Medicare for healthcare. Sponsor eligible family members for their own visas. In most cases, travel in and out of Australia for five years on an initial travel facility. After four years of total residence in Australia, including at least one year as a permanent resident, you become eligible to apply for Australian citizenship.

What permanent residency does not give you is an Australian passport. For that you need citizenship, which comes later. And permanent residency is not the same as citizenship for all purposes — some government security clearance roles and voting rights require citizenship.

There are several pathways to permanent residency. The four main ones for skilled migrants are the focus of this guide:

• Subclass 189 — Skilled Independent (points-tested, no sponsor needed)
• Subclass 190 — Skilled Nominated (points-tested, state or territory nomination)
• Subclass 491 → Subclass 191 — Skilled Work Regional (provisional, leads to PR after three years)
• Subclass 186 — Employer Nomination Scheme (employer-sponsored, direct PR)

There are other pathways including the Global Talent visa (Subclass 858), partner visas, and the family stream — but the four above cover the vast majority of skilled migrant PR applications.

🏆 STEP 1: The Points-Tested System — How It Works

SkillSelect and Expressions of Interest

The Subclass 189 and Subclass 190 are both points-tested visas. Before you can apply for either, you need to submit an Expression of Interest (EOI) through a government platform called SkillSelect.

Think of SkillSelect as a ranking pool. You submit your EOI with your details and the points you claim. The Department of Home Affairs then holds invitation rounds — usually monthly — and invites the highest-scoring applicants in each occupation to apply for a visa.

Submitting an EOI is not an application. It puts you in the pool. An invitation is what allows you to actually apply.

The minimum points score to submit an EOI is 65. However, and this is important, the minimum score almost never gets you invited. Because thousands of people are in the pool at any given time, invitation cutoffs are determined by the number of applicants and the demand for each occupation. In competitive fields like IT and engineering, most invitation rounds are seeing cutoffs between 85 and 95 points. Healthcare and construction occupations tend to receive invitations at lower thresholds, often between 65 and 80 points depending on the state and pool density.

The points categories (current system, as at May 2026):

The points you claim in your EOI must be supported by verified documents when you are invited to apply. Claiming points you cannot evidence is a serious error that can result in refusal and visa cancellation.

SettleMate's Tip: SettleMate recommends using the official points calculator at immi.homeaffairs.gov.au to calculate your score before submitting an EOI, and then having a registered migration agent independently verify your claimed points before you lodge your actual visa application. Points disputes — where an applicant claimed points they could not fully prove — are one of the most common reasons skilled visa applications are refused, and a refusal can affect future applications.

🧾 STEP 2: Subclass 189 — Skilled Independent

No Sponsor. No State. Just Your Points Score.

The 189 visa is the cleanest pathway. No employer sponsor. No state nomination. If your points score is high enough and your occupation is in demand, you get invited to apply directly for permanent residency.

General requirements:

• Must be under 45 at the time of invitation
• Your occupation must appear on the Medium and Long-term Strategic Skills List (MLTSSL) — the most selective of Australia's occupation lists
• A positive skills assessment from the relevant assessing authority for your occupation
• Minimum Competent English (IELTS 6.0 in each component, or equivalent)
• Must score at least 65 points, though as noted above the practical threshold is considerably higher in most occupations

Who this realistically suits:

Because the 189 has no state nomination bonus, every point in your score must come from your personal profile — age, qualifications, English, and work experience. For 2026–27, the 189 is extremely selective, with the strongest invitation activity concentrated in healthcare, teaching, and social work. In IT and engineering, which have historically dominated the 189, cutoff scores have pushed many applicants toward the 190 or 491 pathways where nomination bonuses make a meaningful difference.

If your score sits at 85 or above, the 189 is worth considering as a primary option. Below 85, the 190 or 491 are likely to offer better prospects.

SettleMate's Tip: SettleMate always recommends checking your occupation against the current MLTSSL at immi.homeaffairs.gov.au before counting on the 189 as a pathway. Occupation lists are updated regularly, and an occupation that was on the MLTSSL when you started planning may have moved or been removed by the time you submit your EOI. Always check the live list, not a screenshot from months ago.

🗺️ STEP 3: Subclass 190 — Skilled Nominated

State Nomination Adds Points and Opens More Occupations

The Subclass 190 adds one step to the 189 process: you need nomination from an Australian state or territory government. In exchange, that nomination gives you 5 additional points toward your EOI score.

Five points might sound modest, but in a competitive pool where many applicants are clustered within a narrow points band, five points regularly determines who receives an invitation and who waits.

How state nomination works:

Each state and territory manages its own nomination program independently. They publish their own occupation lists showing which roles they are actively nominating. An occupation might be open in Queensland but closed in Victoria. A role with a cutoff of 85 points in the main SkillSelect pool might be nominated in South Australia with a much lower threshold because that state has a genuine shortage.

To receive a 190 nomination, you typically need to:

• Have an occupation on that state's current nomination list
• Meet any additional requirements set by the state (minimum score, genuine intention to live in the state, relevant experience)
• Submit a separate Expression of Interest to the state or territory, which is different from your SkillSelect EOI

Each state's nomination program is managed through their own portal. Links to state nomination programs can be found via immi.homeaffairs.gov.au.

The 190 grants immediate permanent residency on approval, the same as the 189. Unlike the 491, you are not required to live in a specific region, though many states expect you to genuinely commit to living there when they nominate you.

SettleMate's Tip: SettleMate recommends monitoring multiple state nomination programs simultaneously rather than focusing on just one state. Nomination rounds open and close, and the occupation you need may be on one state's list but not another's. Following the skilled migration accounts of individual state migration agencies on their official government websites — not third-party aggregators — gives you the most accurate and current picture of what is open.

🌾 STEP 4: Subclass 491 and the Path to Subclass 191

Regional Australia, 15 Bonus Points, and a Pathway to Permanent Residency

The 491 is different from the 189 and 190 in one important way: it is a provisional visa, not a permanent one. You do not receive permanent residency immediately. What you receive is five years of work and residence rights in a designated regional area, with a clear pathway to permanent residency through the Subclass 191 after meeting conditions.

That pathway — and the 15-point bonus that comes with regional nomination — is why the 491 is one of the most popular and accessible pathways to PR for migrants who do not have the points score for the 189 or 190.

How the 491 works:

You are either nominated by a state or territory government for a regional area, or sponsored by an eligible family member living in a designated regional area. You live and work in that designated regional area for the duration of your 491 visa.

After three years of living and working in a designated regional area, and meeting an income requirement (you must have earned above the national median income for at least three of the past five years), you can apply for the Subclass 191 permanent visa.

The income requirement is worth understanding before you commit. The current threshold is approximately $53,900 per year in taxable income, assessed over three of the five years of your 491 visa. This is not a high bar for most full-time workers, but it matters if you plan to study, work part-time, or take extended leave during your 491 period.

Regional areas are larger than most people assume. The list includes Geelong, Hobart, Gold Coast, Townsville, Newcastle, and many other substantial cities — not just remote outback locations. Check the current list of designated regional areas at immi.homeaffairs.gov.au because it has been updated and expanded multiple times.

The 491 gives you 15 bonus points in SkillSelect, which is the single largest points bonus available. For an applicant sitting at 70 points on their personal profile, a 491 nomination takes them to 85 — which is genuinely competitive in many occupations.

SettleMate's Tip: SettleMate's observation on the 491 is that many migrants dismiss it because "regional" sounds like a compromise. In practice, cities like Geelong and Hobart are genuine, liveable places with real job markets, lower costs of living than Sydney or Melbourne, and often less competition for roles in your field. The three-year commitment is real, but the outcome — permanent residency, then citizenship eligibility — is the same as any other pathway. For many people, the 491 is the most realistic and fastest route to PR they have.

🏢 STEP 5: Subclass 186 — Employer Nomination Scheme

Your Employer Sponsors You Directly to Permanent Residency

The 186 is the main employer-sponsored pathway to permanent residency and it works completely differently from the points-tested system. There is no EOI, no SkillSelect pool, and no waiting for invitation rounds. If your employer nominates you and your application is approved, you receive permanent residency directly.

This makes the 186 one of the most reliable pathways for migrants who are already working in Australia and have built a genuine relationship with an employer willing to sponsor them permanently.

There are three streams within the 186. The two most relevant to most migrants are:

Temporary Residence Transition (TRT) Stream

This is the most common pathway for 482 visa holders already working in Australia. Once you have worked for your sponsoring employer for at least two years in the same occupation, and your employer is willing to nominate you for permanent residency, you can apply through the TRT stream.

The TRT stream does not require a separate skills assessment in most cases because your track record of working in the role is itself the evidence. Your employer lodges a nomination and you lodge your visa application. Processing typically takes 6–9 months.

Requirements generally include:

• Worked for your sponsoring employer for at least two years in the nominated occupation on an eligible visa (482 or former 457)
• Under 45 at time of application (some exemptions apply for academics, high earners, and certain medical practitioners)
• At least Competent English — IELTS 6.0 in each component or equivalent
• The position must be full-time and ongoing
• Your employer must pay the Skilling Australians Fund (SAF) levy — $3,000 for small businesses, $5,000 for larger businesses

Direct Entry Stream

For skilled workers who have not worked for an Australian employer on a 482 visa, or who are applying from overseas. Requires:

• A positive skills assessment from the relevant assessing body for your occupation, verified against the Core Skills Occupation List (CSOL)
• At least three years of full-time work experience directly relevant to the nominated occupation
• Under 45 at time of application (exceptions apply)
• Competent English
• Your occupation must appear on the CSOL (456 occupations as of 2025)

Processing for the Direct Entry stream typically takes 13–14 months for most applicants.

Government fees for the 186: The primary applicant fee is AUD $4,910. Secondary applicants aged 18 and over pay AUD $2,455 each. Children under 18 pay AUD $1,230 each.

SettleMate's Tip: SettleMate's observation on the 186 is that the relationship with your employer matters enormously. The nomination — which is the employer's responsibility and cost — must demonstrate a genuine, ongoing need for the position. Applications fail not usually because of the worker, but because the employer's nomination documentation was incomplete, the salary did not match the market rate for the role, or the nominated occupation did not align precisely with what the person actually does. If your employer is willing to nominate you, the investment in professional migration help for the nomination component is well worth it.

Get personalised help →

📣 STEP 6: The Points Test Is Changing — What We Know Right Now

The 2026 Federal Budget Confirmed a Major Reform. The Details Are Still Coming.

This is perhaps the most important section for anyone currently planning a PR application, because the rules may look different later in 2026 than they do today.

The 2026–27 Federal Budget officially confirmed plans to reform the permanent skilled migration points test. The government stated the reforms are intended to better select younger, highly educated, and higher-skilled migrants who can contribute to Australia's long-term economic growth and productivity. However, detailed changes to the points test have not yet been announced.

Here is what is confirmed and what is proposed, separated clearly:

What is confirmed (from the Budget papers):

The points test will be "optimised." All that has been stated so far is that the points test will be optimised to select "better educated, higher-skilled, and younger migrants overall." The Department of Home Affairs is expected to publish a draft new test later in 2026. According to early briefings, the new test will place greater weight on age, English language ability, and higher qualifications, while reducing the importance of some existing categories.

What is proposed but not yet confirmed:

Various migration analysts and the Grattan Institute have published proposals that are influencing the direction of the reform. These include:

Younger applicants receiving more points — the current maximum age points go to those aged 25–32. Proposals suggest extending this advantage further toward the lower end of this range, meaning applicants in their late 30s and 40s may find their competitiveness reduced under the new system.

English receiving greater weight — Superior English (IELTS 8 or equivalent) currently carries 20 points. Proposals suggest this category may become even more central to the scoring system.

Employment-based points becoming available — some proposals suggest that having a confirmed Australian job offer above a certain salary threshold (approximately $141,210, the Specialist Skills Income Threshold) could be worth bonus points. This would be a new category that does not exist in the current system.

Some existing categories being removed or reduced — the regional study bonus and the Credentialled Community Language (CCL/NAATI) points are among categories that have been discussed for removal or reduction, though nothing is confirmed.

What this means practically right now:

Whether or not these reforms go ahead in the precise form discussed, the direction is clear. Australia wants skilled migrants who are already working, earning well, and filling genuine workforce gaps.

If you are currently planning a PR application and your points score is strong under the existing system, submitting your EOI before any new rules take effect is worth discussing with a migration agent. The current rules apply to current invitation rounds. Waiting for the new system without knowing whether it will help or hurt your specific profile is a risk. Superior English (20 points) is the single biggest points booster and is unlikely to be devalued in any reform — so if your English test is not yet at Superior level, investing in a retake is almost certainly worthwhile regardless of which direction the reform goes.

SettleMate's Tip: SettleMate's take on the points test reform is straightforward: do not pause your planning waiting for a new system that has not yet been announced. The things that will help you under any version of the points test are the same — better English scores, Australian work experience, and being onshore. Focus on what you can control now and consult a registered migration agent about the timing of your EOI once you understand your current score.

🌟 STEP 7: The Onshore Advantage — Why Being in Australia Right Now Matters

The 2026 Budget Shifted the Numbers Significantly in Favour of People Already Here

One of the most significant and immediate changes from the 2026 budget is the explicit prioritisation of onshore migrants for permanent residency places.

The Budget papers confirm that 129,590 out of 132,240 skilled permanent places will be allocated to migrants already living in Australia, leaving only 55,110 places for offshore applicants.

To put this in plain terms: if you are reading this guide while living and working in Australia on a temporary visa, you are now in a structurally stronger position for permanent residency than someone of identical qualifications sitting offshore waiting to apply. The system has been deliberately designed to favour people who are already here and contributing.

This matters for practical planning because:

Temporary visa holders currently in Australia on 485, 482, 491, and student visas are in the priority cohort for skilled permanent places. The pressure to leave Australia to gather offshore experience before applying for PR has diminished — being here, working in your field, and building your Australian track record is now the strategy the government is explicitly rewarding.

For anyone currently considering whether to stay in Australia or return home while planning a PR application, the answer from a migration program design perspective is to stay if your visa allows it.

SettleMate's Tip: SettleMate recommends that every migrant currently in Australia on a temporary visa use the settlement hub at settlemate.au to understand the specific conditions of their visa and what they can be doing now to strengthen a future PR application — whether that means building Australian work experience, improving English scores, or researching which occupation list their role appears on. The preparation you do while you are here, legally working, is the preparation that matters most.

💡 General Guidance: Things That Help Any PR Pathway

Regardless of which pathway is most relevant to your situation, a few things consistently improve a PR application across all streams:

Australian work experience in your field. For points-tested visas, Australian work experience adds points. For the 186, it is what qualifies you for the TRT stream. For state nomination, many states look more favourably at applicants with Australian experience. Work in Australia in your nominated occupation from as early as possible.

A strong English language test result. Superior English (IELTS 8 in all four components, or equivalent in PTE, TOEFL iBT, OET, or LanguageCert) is worth 20 points in the current system and is likely to matter even more under the reformed test. If you have Proficient English (IELTS 7), upgrading to Superior is the single highest-value action most applicants can take.

A positive skills assessment done early. Skills assessments are required for most skilled visa pathways. They take time — sometimes months. The relevant body for your occupation is set by your ANZSCO code (Engineers Australia for engineers, AHPRA for healthcare professionals, ACS for IT, TRA for trades, and so on). Start this process early, not when you need it.

Keeping detailed employment records. For the 186 TRT, the 491 income requirements, and points-test work experience claims, you will need employment contracts, payslips, tax returns, and reference letters that document exactly what you did, for how long, and at what salary. Start maintaining these records now, even if PR feels years away.

Understanding your occupation's position on the relevant skilled list. Different visa pathways use different occupation lists — MLTSSL for the 189, MLTSSL or STSOL for the 190 and 491, and CSOL for the 186 Direct Entry. Your occupation may appear on one list but not another, which determines which pathways are actually open to you.

📌 Official and Trusted Resources

This guide is informed by:

• Department of Home Affairs — immi.homeaffairs.gov.au (skilled visa subclasses, occupation lists, points tables, invitation data)
• SkillSelect — immi.homeaffairs.gov.au/visas/working-in-australia/skillselect
• Official points calculator — immi.homeaffairs.gov.au/help-support/tools/points-calculator
• 2026–27 Federal Budget migration papers — budget.gov.au
• Migration Institute of Australia — mia.org.au
• Migration Review Tribunal / AAT (for review rights information) — aat.gov.au

Disclaimer

This guide is provided for general informational purposes only and does not constitute legal, migration, tax, or financial advice. SettleMate is not a registered migration agent and is not authorised to provide migration advice. The information in this guide reflects publicly available information about Australia's migration system as at May 2026, and the system changes frequently. Nothing in this guide should be taken as a recommendation to apply for a particular visa or pathway. Always consult a registered migration agent (MARA agent) or immigration lawyer for personalised advice about your specific situation. Visa eligibility, invitation trends, occupation lists, points tables, and fees can change at any time. Always verify current information at immi.homeaffairs.gov.au

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