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Designated Area Migration Agreement (DAMA) Australian Immigration Visa

A designated area migration agreement (DAMA) is an overarching labour agreement in place for a particular region of Australia. The process largely sits outside of a legislative framework, with most requirements outlined under policy only. It is a formal agreement between the Australian Government and a regional, state or territory authority.

As of June 30, 2023, there were 237,150 people in Australia on a subclass 457 Temporary Work (Skilled) visa and their dependents. There were also 151,230 people in Australia on a subclass 482 Temporary Skill Shortage visa and their dependents. This is a total of 388,380 people in Australia on either of these two visa subclasses.

Update - Navigating Changes in Australia's Skilled Migration for 2023-24

On this page

  1. Legislative framework
  2. SBS and Nomination Checklist
  3. Sponsorship obligations Labour Agreements
  4. Nomination ceilings

01. Legislative framework

Migration Act 1958 (the Act) and Migration Regulations 1994 (the Regulations) and associated administrative processes.

The Regulations do, however, set out the requirements that are required to be met where TSS, ENS or SESR nomination or visa applications are lodged under a labour agreement.

In addition, there are provisions in the Act and Regulations that define the terms ‘Work Agreement’ (WA) and ‘Labour Agreement’. The Regulations also include limited provisions regarding requirements for entering into a WA.

As outlined in Regulation 2.76, a Work Agreement is a type of LA. It must:

  • be between:
    • the Commonwealth, as represented by the Minister, or by the Minister and one or more other Ministers; and
    • a person*, an unincorporated association or a partnership; and
  • be a LA that authorises the recruitment, employment, or engagement of services of a person who is intended to be employed or engaged as a holder of a TSS visa; and
  • be in effect (i.e. signed by all parties).

It provides access to more overseas workers than the standard skilled migration program. DAMAs operate under an agreement-based framework, providing flexibility for regions to respond to their unique economic and labour market conditions.

Individual DAMA labour agreements are between the Australian Government and endorsed employers/businesses operating within the relevant designated region. They:

  • are generally in effect for five years, and
  • use the subclass 482 Temporary Skills Shortage (TSS), subclass 494 Skilled Employer Sponsored Regional (Provisional), and subclass 186 Employer Nominated Scheme (ENS) visa programs.

There are currently nine DAMAs in place. Below is a list of those DAMAs with links to the respective Designated Area Representative* websites that contain information on how to access each DAMA as well as which regions/locations/shires are covered:

South Australia (SA) Designated Area Migration Agreement (DAMA)

02. SBS and Nomination Checklist

1.  Documents to prove that the business is active and lawfully operating.
 
 Provide the following:

  • ABN/ACN
  • Company Annual Report
  • Detailed Business Plan
  • Bank Statements – look for recent payments/expenditure.
  • Contract of Sale relating to the purchase of the business
  • Evidence of Bank Loans/overdrafts
  • Correspondence with suppliers/industry bodies/advertisers
  • Asset purchases – recent purchases by the business reflects business activity.
  • Contracts/Work orders – reflects ongoing business activity.
  • Evidence of employment of staff
  • Apprenticeship/training agreements – reflects ongoing employment of staff.
  • Advertisements/promotional information
  • Registration with Industry Associations
  • Relevant pages of the trust deed specifying the parties to the trust (if you are a trust or trustee of a trust)
  • current lease agreement
  • Letter of support from the accountant of your business
  • Financial report prepared by an accountant (not in – house MYOB)
  • Audited balance sheet and profit and loss statement for the most recently concluded fiscal year with comparative figures for previous fiscal year, or
  • Business tax returns and associated tax assessment notices for the most recently concluded fiscal year.

Financial evidence

Types of financial evidence include:

  • financial reports (profit and loss statement / statement of performance, annual report);
  • balance sheet / statement of position;
  •  tax return;
  • Business Activity Statements (BAS);
  • bank statements showing business transactions.

Financial documents should be ‘recent’.
2. Contribution to the Skilling Australian Fund (SAF)
 Evidence to show if employer has paid the nomination training contribution charge referred to as the Skilling Australians Fund (SAF) levy.
3. A current labour agreement
 You must

  • currently have a labour agreement in place with the Australian Government
  •  have met any nomination requirements specified in the agreement.

The occupation you are nominating must be listed in the labour agreement as an occupation you can nominate.

Permanent residence is only available through the subclass 186 Labour Agreement stream if it has been included as an option in the subclass 457 or subclass 482 negotiated labour agreement
4. Proof you have a genuine need for a paid employee.
 Businesses seeking to nominate overseas workers for a permanent employer-sponsored visa are required to demonstrate that there is a genuine need to employ a person in the position.

Provide:

  • a detailed organisational structure chart
  • the name of the occupation and its ANZSCO code
  • a detailed position description, including specified tasks and duties of the position.

Also, provide these where applicable:

  • evidence that the position has existed and been previously occupied but has become vacant through attrition.
  • evidence that the position is currently occupied by a temporary resident.
  • evidence of an increase in business activity (e.g. new contracts won) requiring workers in the nominated occupation
  • evidence of overtime work or increase in overtime work for employees currently in the nominated occupation.
  • if your business is diversifying, evidence of appropriate market research, business plans detailing proposed expansion and timelines, financial budgets covering expenditure and anticipated revenue and evidence of availability of funding (such as own funds or bank loans)
5. Statutory Declaration about adverse information.
 Adverse information

Adverse information is unfavourable information that could impact on your suitability as an approved sponsor.

Adverse information is information that could affect your suitability to:

  • be an approved sponsor, or
  • nominate someone for a visa.

Adverse information could be about:

  • you
  • your organisation
  • someone associated with you or your organisation.

How adverse information affects sponsorship.

Anything adverse we learn about you affects our decision on your sponsorship if it:

  • raises doubts about whether you are suitable to be a sponsor.
  • relates to something that happened in the previous 3 years.

What we might do about adverse information

We might:

  • refuse your application to become an approved sponsor.
  • refuse your application to sponsor or nominate a visa applicant.

If you are already an approved sponsor, we might:

  • cancel your approved sponsorship.
  • apply administrative sanctions.

What we consider adverse

We consider it adverse if you or your organisation has become insolvent under the Bankruptcy Act 1966 and the Corporations Act 2001.

We also consider it adverse if, in relation to a Commonwealth, state or territory law, you or your organisation:

  • has been found guilty by a court of an offence.
  • has been found to have contravened the law by a competent authority.
  • has been the subject of administrative action, including being issued a warning, by a competent authority.
  • is being investigated.
  • has been subject to disciplinary or legal action.

The Commonwealth, state or territory law must relate to:

  • discrimination
  • immigration
  • industrial relations
  • occupational health and safety
  • people smuggling or related offences.
  • slavery, sexual servitude, and deceptive recruiting
  • taxation
  • terrorism
  • people trafficking or debt bondage.

Some adverse information is unlikely to affect our decision. For example, it is not relevant if we learn your business was fined for operating an unregistered vehicle on a public road. But it would be relevant if we learn your company director is being investigated for people trafficking offences.
6. Applicant’s employment contract
 You must include the applicant's employment contract, including information about their salary.

If the overseas worker will be paid an annual salary less than AUD250,000 you need to show:

  • you have determined the AMSR correctly.
  • the overseas worker will not be paid less than the AMSR, that is, less than an Australian worker would be paid
  • both the AMSR and what the overseas worker will be paid, excluding any non-monetary benefits in both cases, is no less than the Temporary Skilled Migration Income Threshold (TSMIT).

The Annual market salary rate (AMSR) is determined by looking at:

  • what an equivalent Australian worker is paid
  • enterprise agreements or industrial awards
  • job outlook information
  • advertisements for the last 6 months in the same location
  • remuneration survey or advice from unions or employer associations.

Determining the AMSR

Where there is an equivalent Australian worker

The AMSR is what you are paying this worker.

If the worker's salary is based on an enterprise agreement or industrial award, you provide:

  • the name of the agreement or award as recorded by the Fair Work Commission, where applicable and
  • the salary level or occupation group that applies to the nomination.

If there is no relevant agreement or award, or you are paying your Australian employees above the award rate, provide:

  • copies of relevant employment contracts and
  • pay slips for this employee.

Note:

  • An Australian worker who is more or less experienced than the nominee and does similar work at a different pay grade is not considered equivalent to the nominee.
  • If you intend to pay the nominated overseas worker less than the equivalent Australian worker, we will refuse the nomination.
  • If you provide only generic market salary data or salary surveys, we will refuse the nomination.

Where there is no equivalent worker but there is an enterprise agreement or industrial award;

Provide:

  • the name of the agreement or award as recorded by the Fair Work Commission, where applicable and
  • the salary level or occupation group that applies to the nomination.

Where there is no equivalent worker, agreement or award

You must determine and then show us what the AMSR is.

Explain how you used relevant information to determine what you will pay the equivalent worker. Relevant information could include at least two of the following:

  • Job Outlook information
  • advertisements from the last six months for equivalent positions in the same location (e.g. state, urban vs regional area)
  • remuneration surveys completed by a reputable organisation
  • written advice from unions or employer associations.

Notes on employment contract

1.  the successful applicant should not be chosen before the 4 weeks of adds expire. No decision on who the successful applicant is, should be made until the end of 4 weeks from the date of first publication. Otherwise, Immigration may argue that the advertising was not genuine.

2. The contract of employment must specify that the employment subject of the visa will commence after the visa is granted.  After that 4 weeks expires the successful applicant could start work before the visa grant on an informal basis but the formal contract should provide that the employment pursuant to that contract does not commence until after the visa is granted.

Checklist – Other cont….

Item

Description
1.      Recruitment summary and evidence of advertisement for each nominated position
 Evidence can include:

  1. samples of advertisements, receipts for advertisements and results of advertisements in newspapers, online platforms, professional journals, industry newsletters etc (we have 4 online platform advertisements)
  2. contracts with recruitment agencies
  3. evidence of participation in job search programs/activities (if any). (Community Consulting Australia Doc)

Must meet Australian Government Labour market testing requirements.

The advertising of the nominated position must meet all of the requirements below:

  • the advertisement was in Australia, in English and included the following information:
    • the title or a description of the position
      Note: multiple positions in one advertisement is acceptable.
    • the skills or experience required for the position.
    • the name of the approved sponsor or the name of the recruitment agency being used by the sponsor.
    • the salary for the position - if the annual earnings for the position are lower than AUD96,400
      Note: it is acceptable to publish a salary range (for example, AUD80,000 to AUD90,000).
  • at least 2 advertisements were published in any of the below:
    • on a prominent or professional recruitment website with national reach that publishes advertisements for positions throughout Australia
      • industry specific recruitment websites relevant to the occupation that are in significant use by the industry are an acceptable method of LMT advertising (Industry specified advertisements require)
      • a general classifieds website or an advertisement solely through social media notification (such as Twitter or Instagram) are not acceptable methods. LinkedIn's online recruitment platform is acceptable for LMT purposes. Job vacancies restricted to LinkedIn profile members only are not acceptable for LMT purposes.
    • in national print media (that is, newspapers or magazines with national reach that are published at least monthly and marketed throughout Australia)
    • on national radio with national reach
    • on the business' website if the sponsor is an accredited sponsor.
  • advertisements, including on websites, are expected to have run for at least 4 weeks (start and end dates of advertisement required)
  • applications or expressions of interest for the advertised position must have been accepted for at least 4 weeks.

Note:

  • the nominated position may be advertised in the same medium (such as newspaper advertisements, on two separate occasions) or in any two different mediums simultaneously, or on two separate occasions
  • advertising may have been undertaken by a third party if authorised to do so by the sponsor (for example, an associated entity or a contracted party, such as a recruitment agency) - there is no requirement that the sponsor placed the advertisement themselves.

In addition to meeting minimum evidentiary requirements outlined below, under policy, the following factors would add weight to an assessment that such efforts have been made (Required):

  • evidence of significant domestic recruitment activities has been provided which demonstrates that the organisation has advertised for a long period with significant coverage;
  • the organisation has used Job active and or participated in DESE programs;
  • the organisation has provided evidence of staff development and/or retention strategies, and explained issues with staff turnover;
  • Detailed information regarding the reasons why any applications received from Australian workers were rejected/not suitable.

Requirements for nominations lodged on or after 1 October 2020

In September 2020, the Australian Government introduced new labour market testing measures for employer sponsored applications.

In addition to the 2 advertisements mentioned above:

  • the nominated position must be advertised on the Government’s Workforce Australia website
  • the Workforce Australia advertisement must have included all of the information required to be included in the other 2 advertisements mentioned above.
  • Workforce Australia advertisements are expected to have run for at least 4 weeks.
  • applications or expressions of interest for the advertised position must have been accepted for at least 4 weeks.

Note: advertising may have been undertaken by a third party if authorised to do so by the sponsor (for example, an associated entity or a contracted party, such as a recruitment agency) - there is no requirement that the sponsor placed the advertisement themselves.

Evidence of a total of 3 advertisements, including an advertisement published on the Government’s Workforce website, must be provided at the time the nomination is lodged.

4.6.5.1 The period within which LMT is required

within the 4-month period which ends on the day on which the nomination application is lodged as specified in the relevant legislative instrument
2.      Job descriptions for each nominated position
 Must state registration, or licensing requirements (if applicable)
3.      Organisation Chart
 Must be less than 6 months old and requested positions must be displayed. Along with visa status and employment status of all disclosed.
4.      Financial and Business activity evidence
 Must be for the last financial year.

  • Company annual report
  • Contracts/Work orders – reflects ongoing business activity
  • Registration of GST
  • Must be a statement or a letter from an accountant, confirming financial viability of the business. (We have a financial statement from perks)
5.      Statutory Declaration about adverse information.
 Adverse information

Adverse information is unfavourable information that could impact on your suitability as an approved sponsor.

Adverse information is information that could affect your suitability to:

  • be an approved sponsor, or
  • nominate someone for a visa

Adverse information could be about:

  • you
  • your organisation
  • someone associated with you or your organisation

How adverse information affects sponsorship

Anything adverse we learn about you affects our decision on your sponsorship if it:

  • raises doubts about whether you are suitable to be a sponsor
  • relates to something that happened in the previous 3 years

What we might do about adverse information

We might

  • refuse your application to become an approved sponsor
  • refuse your application to sponsor or nominate a visa applicant

If you are already an approved sponsor, we might:

  • cancel your approved sponsorship
  • apply administrative sanctions

What we consider adverse

We consider it adverse if you or your organisation has become insolvent under the Bankruptcy Act 1966 and the Corporations Act 2001.

We also consider it adverse if, in relation to a Commonwealth, state or territory law, you or your organisation:

  • has been found guilty by a court of an offence
  • has been found to have contravened the law by a competent authority
  • has been the subject of administrative action, including being issued a warning, by a competent authority
  • is being investigated
  • has been subject to disciplinary or legal action

The Commonwealth, state or territory law must relate to:

  • discrimination
  • immigration
  • industrial relations
  • occupational health and safety
  • people smuggling or related offences
  • slavery, sexual servitude and deceptive recruiting
  • taxation
  • terrorism
  • people trafficking or debt bondage

Some adverse information is unlikely to affect our decision. For example, it is not relevant if we learn your business was fined for operating an unregistered vehicle on a public road. But it would be relevant if we learn your company director is being investigated for people trafficking offences.
6.      Evidence of market salary rate
 This is to prove the nominee receives terms and conditions no less favourable than those provided to an Australian citizen or permanent resident.

  1. employment contract for an employee in the same position
  2. recent payslips for another employee in the same position or
  3. any other evidence of salary levels for an employee in the same position.

Please provide this evidence for each nominated position.
7.      Employment contract
 Employment contract outlining terms and conditions for each occupation.
8.      A statement from the business
 Business case for permanent residence

A submission outlining the business case for permanent residence is required and explaining the reasons as to why the additional positions are required.

A sufficiently strong business case should include the following:

  • A clear, written explanation on why skill shortages cannot be addressed utilising the TSS visa only, noting that the labour agreement stream of the TSS visa provides for visas to be granted for up to four years, with the possibility of a second TSS visa being applied for without the visa applicant having to go off shore.
  • Evidence of plans that the business has to maximise opportunities for Australian citizens and permanent residents to fill skill shortages in the medium to long-term. This may include evidence training and development arrangements and/or evidence of apprenticeship (or like) programs aimed at up skilling Australian employees.
  • Where overseas skilled workers are or will be utilised by the business, evidence of plans to facilitate skills transfer from skilled overseas workers to Australians.
9.      Workforce Plan & Detailed Business Plan
 Workforce Plan, which must outline the current, and where requested, projected future composition of an Approved Sponsor's workforce. It must also include details of the total number of Australian workers (including permanent residents) and temporary visa holders engaged by the Approved Sponsor.

This should also breakdown the total workforce in terms of:

1.      Australian workforce
2.      Subclass 482 visa holders
3.      Other temporary holders
4.      Total workforc

Other details required include:

1.      The business requirement for access to DAMA and reduced reliance on overseas workers
2.      Any requested occupations made redundant in the last six months.
3.      Details for retrenched and occupations
4.      The dates and numbers and occupations of any and all Australian workers who have been retrenched or made redundant in the past 12-month period

For all the mentioned workforce, please disclose employment contracts and evidence of salary payment for the last 12 months.

Also, please disclose any Apprenticeship/training agreements – reflect ongoing employment of staff
10.  Bank Documents
  • Bank statements which show all business-related payments and expenditures for the last 12 months
  • Business tax returns for the last 12 months
  • Contracts of sale relating to the purchase of the business
  • Salary payments to nominated employee and any Australian employee of the same occupation
  • Any evidence of bank loans and overdrafts
  • Leases/ownership – reflects type of premise and business usage
  • Asset purchases – recent purchases by the business
11.  Correspondences
 Any correspondence with suppliers/industry bodies and advertisers.
12.  Business Registration documents
 Registration with Industry Associations

ABN
13.  Contribution to the Skilling Australian Fund (SAF)
 Evidence to show if employer has paid the nomination training contribution charge referred to as the Skilling Australians Fund (SAF) levy

 

03. Sponsorship obligations Labour Agreements

If a Labour Agreement [LA] is approved, the organisation must comply with their sponsorship obligations as outlined in their agreement. These will largely mirror those that apply under the standard business program. Additional obligations may also apply. Go to Sponsorship obligations.

The Migration Act 1958 (the Migration Act) contains the sponsorship compliance framework. The sponsorship obligations and circumstances in which a sponsor may be barred, or a sponsor's approval may be cancelled are prescribed in the Migration Regulations 1994 (the Regulations).

Nomination ceilings

Agreement can include a ‘nomination ceiling’ –a maximum number of TSS and/or ENS nominations that can be approved in each year of an agreement for the next five years.

Ceiling numbers can be agreed upon ‘upfront’.

The Minister must authorise the DAMA agreement. For a DAMA to be approved, efforts must be demonstrated to recruit Australians; first, ceilings must be placed on the numbers of overseas workers employed annually.

Nomination ceilings

Variation to ceiling numbers

Where a variation to ceiling numbers is needed, the sponsor is required to provide the following documentation to the Department so that they consider whether it is appropriate for a Deed of Variation to be prepared and executed:

  • updated workforce plans;
  • evidence of labour market testing that has been undertaken during the last 12 months;
  • evidence of salary arrangements for, and amounts paid to, Primary Sponsored Persons;
  • details of any breaches of immigration or other Commonwealth or State/Territory laws;
  • the dates, numbers and occupations of any and all Australian workers who have been retrenched or made redundant in the past 12 month period; and
  • any additional information requested by the Minister.

Variations to an LA cannot commence until a new written document is executed by or on behalf of all parties. Where a variation has been requested to increase nomination ceilings, nomination applications cannot be lodged until the Deed of Variation has been fully executed.

2 thoughts on “Designated Area Migration Agreement (DAMA) Australian Immigration Visa”

  1. I am Anura , from Genoa,Italy.I’m an Italian passport holder. I would like to apply for the DAMA. My occupation is on the list 322311 Metal Fabricator. How can I apply for it.?

    Reply

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