Australia Work Visa (Subclass 494)

What is the Subclass 494 Visa?

The Subclass 494 visa is a temporary, employer-sponsored visa valid for up to 5 years. It facilitates the entry of skilled workers into regional Australia, enabling them to fill vital roles and contribute to local economies. This visa is a cornerstone of Australia’s regional migration strategy, aiming to ensure a more even distribution of skilled talent across the country.

There are two main streams under the Subclass 494 visa:

• Employer Sponsored Stream: For skilled workers nominated by an approved regional employer.
• Labour Agreement Stream: For skilled workers whose employer has entered into a Labour Agreement with the Australian Government, offering specific occupations and concessions not available under standard lists.
• Subsequent Entrant Stream: For family members of Subclass 494 visa holders who wish to join the primary applicant in Australia.

Key Benefits of the Subclass 494 Visa

• Regional Opportunities: Live, work, and study in designated regional areas, which now encompass all of Australia except Sydney, Melbourne, and Brisbane.
• Pathway to Permanent Residency: A clear pathway to permanent residency through the Subclass 191 Permanent Residence (Skilled Regional) visa after holding the 494 visa for at least three years and meeting specific conditions.
• Family Inclusion: Eligible family members can be included in the visa application.
• Medicare Access: Visa holders are eligible for Medicare, providing access to Australia’s public healthcare system.
• Travel Rights: Freedom to travel to and from Australia multiple times while the visa is valid.

Eligibility Requirements for Subclass 494 Visa

Both the employer and the visa applicant must meet specific criteria for a successful Subclass 494 visa application.

For the Employer/Sponsor:

• Regional Location: The business must be lawfully operating in a designated regional area of Australia.
• Genuine Need: Demonstrate a genuine need for the nominated occupation within the business.
• Labour Market Testing (LMT): Evidence that the position was advertised and could not be filled by an Australian citizen or permanent resident (though recent changes may simplify this for some roles, employers no longer need to advertise on Workforce Australia).
• Skilling Australia Fund (SAF) Levy: Pay a contribution for each nominated employee (e.g., AUD 3,000 for businesses with turnover less than AUD 10 million, or AUD 5,000 for higher turnover).
• Salary Requirements: Pay the Australian market salary rate, which must be at or above the Temporary Skilled Migration Income Threshold (TSMIT).
  • Update (Effective July 1, 2025): The Core Skills Income Threshold (CSIT) is set to increase to AUD $76,515, and the Specialist Skills Income Threshold (SSIT) to AUD $141,210.
• Regional Certifying Body (RCB) Advice: Obtain certification from an appropriate RCB.
• Full-time Position: The nominated position must be full-time and likely to be available for at least five years.

For the Visa Applicant:

• Age: Generally, be under 45 years of age at the time of application (exemptions may apply, e.g., for certain medical practitioners or academics).
• Nominated Occupation: Be nominated to work in an occupation on the relevant skilled occupation list (Medium and Long-term Strategic Skills List or Regional Occupation List).
• Skills Assessment: Hold a positive skills assessment for the nominated occupation from the relevant assessing authority, demonstrating qualifications, skills, and work experience.
• Work Experience: Have at least three years of full-time, relevant work experience in the nominated occupation at the required skill level, generally gained within the last five years. (Equivalent part-time work may be considered; casual work is not).
• English Language Proficiency: Demonstrate at least competent English (e.g., IELTS 6.0 in each band or equivalent).
• Health and Character: Meet Australia’s health and character requirements (medical examinations and police certificates).
• Australian Values Statement: Sign the Australian Values Statement.

Subclass 494 Visa Application Process

The application process for the Subclass 494 visa typically involves coordinated steps between the employer and the applicant:

1. Employer Sponsorship: The employer must be an approved Standard Business Sponsor or apply to become one.
2. Employer Nomination: The employer lodges a nomination application for the specific position and the skilled worker. This includes proving the genuine need for the role, undertaking labour market testing, and obtaining RCB advice.
3. Visa Application: Once the nomination is approved, the skilled worker (and any accompanying family members) can then lodge their Subclass 494 visa application. This requires submitting all necessary personal documents, skills assessment, English test results, and health/character clearances.

Required Documents

While not an exhaustive list, key documents generally include:

• Valid passport and identity documents.
• Proof of English language proficiency.
• Positive skills assessment for the nominated occupation.
• Evidence of work experience and qualifications.
• Health examination results.
• Police clearance certificates from all countries lived in for 12 months or more.
• Marriage certificates or de facto relationship proof (if applicable).
• Birth certificates for dependent children.

Processing Times and Costs

• Processing Times: These can vary significantly based on individual circumstances, stream (Employer Sponsored vs. Labour Agreement), and the completeness of the application. As of recent updates, the processing times for 90% of Employer Sponsored Stream applications are around 14 months, and for Labour Agreement Stream, around 6 months.
• Visa Application Fees: The base application fee for the primary applicant is set to increase from July 1, 2025. Additional charges apply for dependent applicants and for dependent applicants aged 18 or over who do not have functional English. For the most current fees, refer to the Department of Home Affairs website.

Recent Changes and Updates (2025)

The Australian migration landscape is dynamic, with several significant reforms impacting the Subclass 494 visa in 2025:

• Condition 8607 Flexibility (Effective March 2025): Subclass 482 and Subclass 494 visa holders can now continue working for prospective sponsors while awaiting nomination approval, provided a new nomination application is lodged within 180 days of ceasing employment with their previous sponsor. This prevents income gaps and ensures business continuity.
• Income Threshold Adjustments (Effective July 1, 2025): The Temporary Skilled Migration Income Threshold (TSMIT) will see annual indexation, with the Core Skills Income Threshold (CSIT) rising to AUD $76,515 and the Specialist Skills Income Threshold (SSIT) to AUD $141,210. This ensures sponsored workers receive competitive salaries.
• Simplified Pathways and Regional Focus: Ongoing government reforms aim to streamline visa processes and prioritize regional migration to address skilled labour shortages in these areas. The 494 visa remains a key instrument in this strategy, with regional visas receiving priority processing.
• Reduced Employer Advertising Burden: Employers are no longer required to advertise positions on Workforce Australia, simplifying the sponsorship process.

Life in Regional Australia on a Subclass 494 Visa

Holders of the Subclass 494 visa are subject to specific conditions designed to support the visa’s regional focus:

• Designated Regional Area: You must live, work, and study only in a designated regional area of Australia.
• Nominated Occupation and Employer: You must only work in your nominated occupation and for your nominating employer or an associated entity in regional Australia. Failure to comply can lead to visa cancellation.
• Commencement of Employment: You must commence employment within 90 days of entering Australia (if outside Australia at visa grant) or within 90 days of the visa grant date (if in Australia).

Pathway to Permanent Residency (Subclass 191 Visa)

The Subclass 494 visa is a provisional visa that offers a clear pathway to permanent residency. After holding the 494 visa for at least three years, and complying with all visa conditions (including living and working in a designated regional area and meeting income requirements for three years out of the five-year visa validity), you may be eligible to apply for the Permanent Residence (Skilled Regional) visa (Subclass 191).

This permanent visa provides long-term stability and continued opportunities in Australia, making the Subclass 494 an attractive option for skilled professionals seeking a future in regional Australia.