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ATO FY 2025/26 STAGE 3 ACTIVE
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Employer Nominated PR (Subclass 186) – Stage 3 Rates FY 2025/26

Employer Nomination Scheme (Subclass 186 PR) Tax Calculator

Subclass 186 visa holders transition to permanent residency through employer nomination, receiving standard Australian resident tax status and full Medicare.

Stage 3 Marginal Rates100% Medicare Exemption Check12% Superannuation Guarantee
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Gross Annual Salary (AUD)

Base salary before tax & superannuation

FY 2025/26 Stage 3
AUD $
$20k$100k$180k$300k
Quick Presets:

Visa Subclass & Nationality

Determines tax residency brackets and Medicare eligibility

Non-RHCA (MES Eligible)

Additional Residency & Insurance Toggles

Applied for Permanent Residency (PR)?Subclass 186/189/190/820

Applying for PR with work rights gives you interim Medicare access, removing the MES exemption.

Adequate Private Hospital Cover?Avoids MLS Surcharge

Avoids 1.0% – 1.5% Medicare Levy Surcharge for taxable incomes above $101,000.

Estimated Net Pay

Take-Home Income

Net Take-Home (annual)26.9% Effective Rate
$102,312/ annual
Medicare Levy Payable (2%)Standard

Levy: $2,800/yr (Australian Citizens and Permanent Residents are eligible for full Medicare and must pay the Medicare Levy.)

Gross Salary$140,000
Income Tax (Stage 3)-$33,138
Medicare Levy-$2,800
Medicare Levy Surcharge (Tier 2 (1.25%))-$1,750
Total Tax Withheld$37,688
Employer Superannuation12.0%

Paid in addition to gross salary

$16,800

Total pkg: $156,800

Citizen vs. Visa Holder Comparison

AU Citizen / PR

$102,312

Includes 2% Medicare
Visa Holder (You)

$102,312

Standard Rate

Take-home pay matches standard Australian citizen tax rates (Medicare Levy applies).

Private Hospital Cover Tax Shield

Income of $140,000 triggers Medicare Levy Surcharge (Tier 2 (1.25%))

Penalty: -$1,750/yr
Without Hospital Cover (Tax Penalty)

-$1,750

Paid 100% to the ATO as a surcharge tax with zero healthcare benefit.

With Basic Hospital Cover

~$1150/yr

Saves you $600 in net cash + full private hospital cover!

Compare ATO compliant private hospital health funds (Bupa, Medibank, nib).Compare Tax Shield Policies
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Official ATO & Services Australia Rules for Subclass 186 (Employer Nomination Scheme PR)

How your visa subclass is treated under Australian tax legislation

Tax Residency Treatment

Standard resident Stage 3 tax brackets with 12% superannuation.

Medicare Levy Exemption (MES) Guidance

Permanent residents pay the 2% Medicare Levy and receive public healthcare coverage.

Subclass 186 Employer Nomination Scheme (ENS) Tax Overview

The Subclass 186 visa allows skilled workers nominated by an Australian employer to live and work permanently in Australia.

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1. Transitioning from 482 TSS to 186 ENS

While on a 482 visa you were likely exempt from the 2% Medicare Levy (MES Category 1). Once your 186 application is lodged with work rights (or upon visa grant), you become eligible for Medicare and the 2% Medicare Levy begins.

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2. Stage 3 Brackets & Superannuation

  • Benefit from the expanded 30% tax bracket up to $135,000.
  • Mandatory 12.0% employer Superannuation Guarantee.
  • Frequently Asked Questions

    Tax & Medicare Questions for Subclass 186 (Employer Nomination Scheme PR)

    Q:What changes when transitioning from 482 to 186 PR for tax?

    The primary change is Medicare: on 482 you could claim a 100% Medicare Levy Exemption (MES), whereas on 186 PR you become eligible for Medicare and pay the 2% Medicare levy.