Company Insolvency While Waiting for a Visa 186: Nominee Rights

What happens when the sponsoring company becomes insolvent?

The Visa 186 is an employer-sponsored visa, which means the whole process — from nomination through to the visa decision — is tied to a specific employer. When the sponsoring company falls into insolvency, liquidation, or stops operating while the application is being processed, this is one of the most complex situations a nominee can face.

As a matter of legal principle: once the company no longer legally exists, the nomination tied to it also ceases to have effect. The DHA cannot keep processing a Visa 186 based on a nomination from an entity that has been dissolved.

Is the nomination cancelled immediately?

A nomination is not automatically cancelled the moment a company begins insolvency proceedings. However:

• If the company is in voluntary administration but still operating, the nomination may technically remain temporarily in effect.
• If the company is wound up and formally ceases to operate, the nomination becomes ineffective and the DHA will usually refuse the nomination or visa application.
• The DHA may proactively make contact to confirm the employer’s status during processing.

Is the nomination fee refundable?

This is one of the most practical questions. The Visa 186 nomination fee (including the Skilling Australians Fund levy) is generally not refundable if:

• The nomination is withdrawn by the employer (even due to circumstances beyond their control, such as insolvency).
• The nomination is refused because the employer is no longer eligible.

In some special cases, the DHA may consider refunding the visa application fee if the nomination is cancelled before the visa application is processed, but this is not a fixed rule and must be requested formally.

The 60-day period and bridging visas

If the nominee is in Australia on a Visa 482 or another valid visa, the employer’s insolvency triggers an important protection.

When a 482 employer ends the sponsorship or becomes insolvent, the nominee generally has 60 days to:

1. Find a new employer and be sponsored again.
2. Apply for another suitable visa.
3. Arrange to leave Australia.

During this 60-day period the nominee may remain in Australia and, in some cases, apply for a Bridging Visa E (BVE) to gain more time to resolve their status. It is important to notify the DHA of the change in circumstances straight away.

Do you have to start again from scratch?

The practical answer: yes, but not entirely. The nominee needs to:

1. Find a new employer willing to sponsor a Visa 186.
2. Have the new employer lodge a new nomination — the nomination process must be done again from the start.
3. Note that the old visa application cannot be transferred to the new employer — the nominee needs to lodge a new application, or in some cases contact the DHA to discuss whether a transfer is possible.

That said, evidence already prepared (a skills assessment, English results, a health examination) still holds value if it remains within its validity period, saving considerable time and cost.

Moving to a Visa 482 as a bridge

A practical strategy many people use in this situation is to move to a Visa 482 (Temporary Skill Shortage) with a new employer as an interim step:

• A Visa 482 may be processed faster than a Visa 186.
• After working long enough with the new employer, the nominee can re-lodge a 186 through the Temporary Residence Transition (TRT) stream.
• This extends the overall timeline but lets the nominee stabilise their lawful status while preparing the path to PR.

An employer’s insolvency is a real risk that cannot be entirely eliminated, but understanding your rights and available options helps you respond quickly and protect your interests.