Labour Agreements for Australian Employers
A labour agreement is a formal arrangement between an employer and the Australian Government that allows overseas workers to be sponsored where standard programs do not fit. They are more involved than a standard sponsorship, so careful planning matters. Southern Stone supports employers with complex or high-volume recruitment needs.
There is more than one kind of labour agreement, and the right one depends on your industry, your location and what you need. Industry agreements cover set industries on terms already agreed with government. A company-specific agreement is negotiated for one business. A DAMA covers a designated regional area, and project and Global Talent agreements cover particular situations. The sections below explain each, so you can see which is likely to fit before we assess it with you.
- ForEmployers outside standard programs
- TypesIndustry, company, DAMA, project
- Visas482, 494 and 186
- EffortMore involved than standard sponsorship
Key facts
- A formal arrangement with the Australian Government for when standard sponsorship does not fit
- Company-specific agreements are negotiated for one business and need strong evidence
- DAMAs support employers in designated regional areas
- Visas under an agreement can include the 482, 494 and 186, depending on the agreement
Employer fees: sponsorship, nomination and levy
- Standard business sponsorship (482 and 494)$420
- Nomination for a Skills in Demand (482) position$330
- 186 nomination, Temporary Residence Transition streamNil
- 186 nomination, Labour Agreement stream$540
$540 for a non-regional position, and nil for a regional position.
- Skilling Australians Fund (SAF) levy, 482$1,200 to $1,800 a year
Charged for each year of the visa period nominated. $1,200 a year if the business turnover is under $10 million, and $1,800 a year if it is $10 million or more.
- Skilling Australians Fund (SAF) levy, 186$3,000 to $5,000
A one-off charge. $3,000 if the business turnover is under $10 million, and $5,000 if it is $10 million or more.
These are the Department of Home Affairs charges paid by the employer. They can change, so confirm the current amounts with the Department before you lodge. The Skilling Australians Fund levy cannot be passed on to the worker. The visa application charge for the worker is separate, and our professional fees are separate.
Benefits of a labour agreement
Fill roles that standard sponsorship cannot, including occupations outside the standard lists
Concessions, for example to English, skills, experience or salary, may be available, depending on the agreement
Industry agreements bring terms already agreed with government, so there is less to negotiate
A pathway to permanent residence for sponsored workers, through the 186 Labour Agreement stream
DAMAs let regional employers address local workforce shortages on terms tailored to the area
Agreed terms set out upfront, which gives your business more certainty when planning its workforce
Industry labour agreements
Industry agreements are templates with fixed terms and concessions already agreed with government, so they are usually quicker than negotiating from scratch. Your business must fall within the industry the agreement covers.
Visa options under each agreement include the 482, 494 and 186, depending on the industry. Terms are fixed, so extra concessions generally cannot be requested.
Company-specific labour agreements
Where no industry, DAMA or project agreement covers your need, a company-specific agreement can be negotiated for your business alone. It takes more evidence and more time, so we confirm first that it is the right route.
- A genuine, demonstrated needYou must show the roles cannot be filled through standard programs or by Australian workers, with recent recruitment efforts.
- An established, viable businessThe business has operated lawfully in Australia for the previous 12 months and is financially viable.
- Tailored termsConcessions, for example to English, skills, experience or salary, may be requested, but each needs a strong business case.
- Workforce limitsThe share of overseas workers in your workforce may be capped, depending on your location.
Designated Area Migration Agreements (DAMA)
A DAMA is a regional agreement between the Australian Government and a Designated Area Representative, usually a state or territory government or regional body. Employers in the region can then request an individual labour agreement under it, with access to the concessions the region has negotiated.
- Victoria
- Goulburn ValleyGreat South Coast
- New South Wales
- Orana
- Queensland
- Far North QueenslandTownsville
- Northern Territory
- Northern Territory
Official Home Affairs DAMA page
- Confirm your business and roles fall within a DAMA region and its occupation list
- Seek endorsement from the Designated Area Representative
- Lodge a labour agreement request, showing genuine efforts to recruit Australian workers first
- Nominate workers under the agreement on the 482, 494 or 186 visa
Head agreements run for five years, and each region has its own occupation list and concessions. We check the current terms for your region before advising.
Other agreements
- Project agreementsFor project companies managing the construction phase of large resources or infrastructure projects, with a deed at project level and individual agreements for the employers on it.
- Global Talent Employer SponsoredFor startups and established businesses recruiting highly skilled, specialised roles, including STEM-related fields, with a pathway to permanent residence.
How we help
- Assess which agreement type, if any, suits your business
- Gather the workforce and business evidence a request needs
- Prepare the request and manage communication through the process
- Nominate workers under the agreement, including through the 186 Labour Agreement stream
Common pitfalls
- Pursuing an agreement when a standard visa would be faster
- Weak evidence of local recruitment efforts
- Underestimating the time an agreement takes to negotiate
Not sure whether this applies to your business? Ask us
Frequently asked questions
Is a labour agreement right for us?
Only after we review your roles and numbers. Many employers are better served by a standard visa, and an agreement can take longer to negotiate. We give you an honest view of whether it is worth pursuing.
Can workers get permanent residence?
Yes, through the 186 Labour Agreement stream, where the agreement permits it. Terms vary between agreements, so we check what yours allows before you make promises to the people you want to hire.
What is the difference between industry, company-specific and DAMA agreements?
Industry agreements are templates with fixed terms for a defined industry. Company-specific agreements are negotiated for one business. A DAMA is a regional agreement under which local employers can request individual agreements and access the concessions the region has negotiated.
Can we ask for extra concessions under an industry agreement?
Generally not, because industry agreement terms are fixed. That is also why they are usually quicker than negotiating from scratch. If you need tailored terms, a company-specific agreement may be worth considering.
What do we need to show for a company-specific agreement?
You must show a genuine need that cannot be met through standard programs or by Australian workers, with recent recruitment efforts. The business must also be established and viable. Any concessions requested need a strong business case.
How does a DAMA request work?
You confirm your business and roles fall within a DAMA region and its occupation list, seek endorsement from the Designated Area Representative, then lodge a request. Each region has its own terms, so we check the current position first.
Talk to us about your sponsorship
Tell us about your business and the role you need to fill. We will review your circumstances and explain the suitable pathway and next steps.