What is the difference between a labour agreement and a DAMA?

A labour agreement is negotiated directly between the Australian Government and an individual employer or industry body and can be used anywhere in Australia. A DAMA is a two-tier arrangement negotiated between the Government and a state or territory authority, with individual employers then accessing the DAMA via endorsement from that authority. DAMAs are area-specific and include occupation lists and concessions set by the DAMA instrument, whereas labour agreements are more customised to the individual employer or industry's needs.

Labour Agreements for Employer Sponsorship: Types and Process

What Is a Labour Agreement?

A labour agreement is a formal arrangement between the Australian Government (represented by the Minister for Home Affairs or a delegate) and an employer or industry body that allows the employer to sponsor overseas workers under modified terms that are not available through the standard Subclass 482 (Temporary Skill Shortage) or Subclass 494 visa frameworks.

Labour agreements exist to fill genuine gaps in the standard migration framework. If an employer needs to sponsor a worker in an occupation not on the eligible occupation lists, or if the standard salary thresholds and qualification requirements prevent them from meeting their legitimate workforce needs, a labour agreement may be the pathway.

The legal foundation for labour agreements is Regulation 2.72C of the Migration Regulations 1994, which authorises the Minister to approve labour agreements and determines their effect on visa requirements. Once in force, a labour agreement modifies the operation of the standard Migration Regulations for the employer (or industry) party to the agreement.

The Five Types of Labour Agreements

1. Company-Specific Labour Agreements

A company-specific labour agreement is negotiated between the Department of Home Affairs and an individual employer. It is the most tailored form of labour agreement and is intended for situations where the employer has needs that cannot be met by any industry template or by a DAMA.

To obtain a company-specific agreement, the employer must demonstrate:

A genuine and demonstrated need to sponsor overseas workers in the relevant occupation
That the vacancy cannot be filled from the Australian labour market after genuine recruitment efforts
That the proposed employment conditions (salary, hours, leave entitlements) meet Australian standards — the agreement will not be approved if it undercuts local workers
That the employer has a sound financial position and a good immigration compliance record

Company-specific agreements typically take 12 to 18 months to negotiate and are approved for a set period (usually three to five years). They specify the occupations, salary thresholds, and any modified qualification or English requirements that apply to workers sponsored under the agreement.

2. Industry Labour Agreements

Industry labour agreements are standardised templates pre-negotiated between Home Affairs and industry bodies for sectors with systemic and recurring workforce shortages. Instead of each employer negotiating from scratch, individual employers can apply to “access” an existing industry agreement, which significantly reduces the time and cost of the process.

Industry agreements currently available include:

Accommodation Industry Labour Agreement — for hotels, resorts, and accommodation venues; includes concessions for roles such as restaurant manager, chef, and housekeeper at relevant salary thresholds
On-Hire Industry Labour Agreement — for on-hire (labour hire) companies that place workers with client businesses; structured differently from other agreements because the on-hire company is the nominal employer
Meat Industry Labour Agreement — for abattoirs and meat processing facilities; includes concessions for boners, slicers, and other meat processing occupations not typically on standard eligible occupation lists
Dairy Industry Labour Agreement — for dairy farms and processing operations in regional areas
Fishing Industry Labour Agreement — for commercial fishing vessels and aquaculture operations
Restaurant Industry Labour Agreement — for restaurants (different from the accommodation agreement); includes cook and commis chef occupations with concessions on salary and English

An employer accessing an industry agreement applies to Home Affairs using the standard industry agreement template. Home Affairs assesses the employer’s eligibility (financial health, compliance record, genuine need, evidence of local recruitment) and, if satisfied, approves the employer’s access. The employer can then sponsor workers under the agreement’s terms.

3. Designated Area Migration Agreements (DAMA)

DAMAs are a specialised form of labour agreement negotiated at the regional or state/territory level rather than at the individual employer or industry level. A DAMA creates a framework under which the relevant DAMA authority (the state or territory government body) endorses individual employers, who then sponsor workers under the DAMA’s terms.

DAMAs can modify eligibility criteria for both the Subclass 482 (temporary) and Subclass 494 (provisional regional) visas. The concessions available under DAMAs — including age, English, experience, and skills assessment modifications — are discussed in detail in our separate guide on DAMA concessions.

From a technical standpoint, a DAMA is a two-tier agreement: the head agreement exists between the Australian Government and the DAMA authority (for example, the Government of Western Australia), and individual employers access the DAMA via an endorsement letter from the authority. The employer must hold both the DAMA endorsement and standard standard business sponsorship approval.

4. Project Agreements

Project agreements are labour agreements tied to specific major infrastructure, construction, or resource projects of national or significant regional economic importance. They are typically used where a large project has immediate and well-defined workforce needs that the Australian market cannot satisfy on the required timeline.

Project agreements are the most time-limited of all agreement types — they are usually approved for the duration of a specific project phase rather than for an ongoing period. Sponsors under project agreements must demonstrate that the project is genuine, the occupations are genuinely needed for the project, and that the overseas workers will be employed directly on the project (not diverted to other work).

Project agreements have been used for major LNG facilities, port infrastructure, large-scale renewable energy projects, and critical transport infrastructure. They are not available for general business workforce shortages — the project nexus must be clear and documented.

5. Global Talent Employer Sponsored (GTES)

The Global Talent Employer Sponsored (GTES) arrangement is technically a labour agreement, but it operates as a fast-track pathway for highly skilled technology and innovation sector workers. Unlike other labour agreements, GTES is targeted at individual high-value hires rather than volume workforce needs.

GTES is designed for employers in the global technology and science sectors who need to bring in an individual with highly specialised skills that genuinely cannot be found in Australia. The arrangement allows the employer to nominate an individual for a Subclass 482 visa without the standard occupation list restriction, at salaries above the applicable threshold for the sector.

GTES is not a pathway for small businesses or for workers in general shortage occupations. It is reserved for genuinely exceptional hires where the employer can demonstrate the individual’s unique skills and the proposed salary reflects market rates for talent at that level.

Regulation 2.72C: The Legal Framework

Regulation 2.72C of the Migration Regulations 1994 is the regulatory provision that gives labour agreements their legal force. It provides that where a labour agreement is in effect between the Minister and an employer (or between the Minister and an industry body on behalf of employers), the terms of that agreement modify the application of the Migration Regulations to visa applications made under the agreement.

In practical terms, this means:

A nomination under a labour agreement must specify which labour agreement applies and how the applicant meets the agreement’s criteria
If a term of the labour agreement conflicts with the standard Migration Regulations, the agreement term prevails (within the limits of what the Minister can lawfully approve)
The agreement’s terms are enforceable as conditions on the employer — if the employer fails to comply with the agreement’s employment or salary requirements, the agreement can be suspended or cancelled

December 2024 Amendments: What Changed

In December 2024, the Australian Government released a legislative instrument (Federal Register reference F2024L01653) amending the framework for labour agreements and employer sponsorship under the Migration Regulations. The key changes introduced by this instrument include:

Tightened Labour Market Testing for Agreement Access

The December 2024 amendments strengthened Labour Market Testing (LMT) requirements for employers seeking to access industry labour agreements. Under the amended provisions, employers must demonstrate recruitment efforts that are more recent and more documented than the previous standard required. Specifically:

LMT evidence must now be no older than four months at the time the agreement access application is lodged (previously six months was accepted in some contexts)
The minimum advertising period for agreement access applications was standardised at 28 days across all industry agreement templates
Salary disclosure in advertisements was made mandatory for agreement access applications, consistent with the IMMI 18/036 requirements already applying to standard 482 nominations

Updated Salary Floor for Industry Agreements

The December 2024 amendments updated salary floors under several industry agreement templates. The Temporary Skilled Migration Income Threshold (TSMIT) — set at $73,150 in 2024, rising to $76,515 from July 2025 — was incorporated as the baseline floor across all industry agreements that previously had their own (often lower) salary thresholds. Employers operating under industry agreements must now meet at least the TSMIT for all sponsored positions unless the agreement’s instrument specifically provides otherwise.

Strengthened Compliance Obligations for On-Hire Agreements

The on-hire industry agreement was amended to require on-hire sponsors to provide Home Affairs with periodic reporting on the end-client employers to which sponsored workers are placed. This change was introduced following compliance reviews that found some on-hire sponsors were placing workers in roles or locations inconsistent with the terms of the agreement. Under the amended provisions, on-hire sponsors must maintain and produce records of each placement within 10 business days of a departmental request.

GTES Threshold Increase

The salary threshold for GTES nominations was increased to $135,000 per annum (total remuneration) from January 2025, reflecting the Government’s intent to keep GTES as a genuinely high-value pathway rather than a general alternative to the standard TSS framework.

How to Choose Between a Labour Agreement and a DAMA

Factor	Labour Agreement	DAMA
Location of employer	Anywhere in Australia	Must be within the designated area (some DAMAs include capital cities)
Employer type	Individual employer or industry body member	Must be DAMA-endorsed by the state/territory authority
Speed to access	Company-specific: 12–18 months. Industry template: 3–6 months.	DAMA endorsement: 1–4 months (varies by authority)
Occupation flexibility	High — can include occupations not on standard lists	Limited to the DAMA’s specific occupation list
Available concessions	Negotiated case-by-case or per industry template	Fixed by the DAMA instrument; may include age 55, English 5.0, 2yr experience
Visa types available	482 (TSS) and 494 Labour Agreement streams	482 and 494 (via DAMA-specific streams)

Frequently Asked Questions

Can a small business access a labour agreement?

Yes, but the bar is higher than for larger businesses. Home Affairs assesses whether the employer has a genuine demonstrated need, adequate financial resources to support the sponsored workers, and a sound compliance track record. A small business with no prior sponsorship history, a complex ownership structure, or marginal financial position will face greater scrutiny. Industry agreements are often more accessible for small businesses than company-specific agreements, because the industry template provides a pre-negotiated framework that reduces the negotiation burden.

Can workers sponsored under a labour agreement apply for permanent residence?

It depends on the agreement and the visa subclass. Workers sponsored on a Subclass 482 under a labour agreement may be eligible for the Employer Nomination Scheme (Subclass 186) permanent residence visa via the Temporary Residence Transition stream after three years of employment. Workers on a Subclass 494 (including those accessed via a DAMA) are eligible for the Subclass 191 permanent residence visa after three years in a regional area, meeting income and English thresholds. The specific path to permanency should be mapped out before lodging the temporary visa application, not after.

What happens if a labour agreement is cancelled while I am sponsored under it?

If the labour agreement is cancelled or lapses while you hold a visa granted under it, your visa itself is not automatically cancelled. You continue to hold the visa and may remain in Australia. However, your sponsor is no longer authorised to sponsor workers under the agreement, so if you need to renew your visa, you would need a new sponsorship arrangement. The practical risk is primarily at renewal time. Where cancellation was due to employer non-compliance (such as salary underpayment), workers may be protected by the “no-worse-off” protections in the Migration Act — take legal advice immediately if this occurs.

Labour Agreements for Employer Sponsorship: Types, Process, and 2024 Amendments