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Reviewed by Mohammad Saghir Khan, Registered Migration Agent (MARN 1170510)Last reviewed:
A labour agreement is a formal agreement between an Australian employer and the Australian Government that allows the employer to sponsor overseas workers when standard visa programs do not meet its needs. There are company-specific agreements, industry labour agreements and Designated Area Migration Agreements (DAMAs). As at October 2026 there are 13 DAMAs, each covering a defined region. Labour agreements are generally in effect for 5 years and use the Labour Agreement streams of the Skills in Demand (482), Skilled Employer Sponsored Regional (494) and Employer Nomination Scheme (186) visas, with possible concessions on age, English, salary or experience.

| What it is | An agreement between an employer and the Australian Government to sponsor overseas workers |
|---|---|
| Types | Company-specific, industry, Designated Area Migration Agreements (DAMAs), project agreements |
| Current DAMAs | 13 (Home Affairs, updated 7 October 2026) |
| Visas used | 482 Labour Agreement stream, 494 Labour Agreement stream, 186 Labour Agreement stream |
| Term | Generally 5 years |
| Possible concessions | Age, English, salary and work experience, depending on the agreement |
| Cost to request | No fee to request a labour agreement. Nomination, levy and visa costs apply |
| Type | Who it is for | How it works |
|---|---|---|
| Company-specific | An employer with a genuine skills need not covered by an industry agreement, a DAMA or the standard occupation lists | The employer makes a business case, consults stakeholders and negotiates concessions |
| Industry labour agreement | Employers in industries with an agreed template: Advertising, Aged Care, Dairy, Fishing, Horticulture, Meat, Minister of Religion, On-hire, Pork and Restaurant (premium dining) | Fixed, non-negotiable terms and concessions set for the whole industry |
| Designated Area Migration Agreement (DAMA) | Employers in a defined region covered by a DAMA head agreement | The employer gets endorsement from the Designated Area Representative, then requests a labour agreement |
| Project agreement | Project companies with skills shortages during the construction phase of resource or infrastructure projects | Limited, including projects under the China-Australia Investment Facilitation Agreement |
Home Affairs lists 13 DAMAs (page updated 7 October 2026):
Home Affairs says it is supporting a transition to state and territory-led DAMAs, so the list and the regions covered may change. Each Designated Area Representative publishes its own occupation list, concessions and endorsement process.
A DAMA has two tiers. The first is a five-year head agreement between the Australian Government and a Designated Area Representative, such as a state or territory government, regional development body, chamber of commerce or council. The second is an individual labour agreement between the Government and each endorsed employer in the region. A DAMA can give access to more occupations than the standard skilled lists, including some semi-skilled roles, and to agreed concessions. Employers must still show they have genuinely tried to recruit Australians first. A DAMA will not be endorsed where the industry is covered by an industry labour agreement.
Concessions depend on the agreement and the occupation. They can include:
Concessions are not automatic. Check the current terms with the relevant Designated Area Representative or the agreement template before relying on them.
For a company-specific agreement, Home Affairs says the business must have operated lawfully in Australia for at least 12 months, be financially viable, have no adverse information, consult relevant stakeholders and show that overseas workers will not be more than one-third of its workforce. Positions are generally at ANZSCO skill levels 1 to 4. All labour agreement sponsors pay the Skilling Australians Fund levy with each nomination, except for ministers of religion and religious assistants in some streams.
We help employers decide whether a labour agreement is needed, prepare DAMA endorsement requests and company-specific business cases, lodge the labour agreement request, and then prepare nominations and visa applications for workers under the 482, 494 or 186 Labour Agreement streams.
Every case is different. Talk to a Registered Migration Agent about your DAMA and Labour Agreements before you lodge.
Book a consultationSources: Home Affairs: Labour agreements · Designated Area Migration Agreements · Company-specific labour agreements · Industry labour agreements · Cost of sponsoring
Plain-English answers to the questions we are asked most often.
A Designated Area Migration Agreement is an agreement between the Australian Government and a regional representative, such as a state government or regional body. It lets employers in that region sponsor overseas workers in more occupations than the standard lists, often with concessions.
Home Affairs lists 13 DAMAs as at its update of 7 October 2026, including Goulburn Valley and Great South Coast in Victoria. Home Affairs says it is supporting a transition to state and territory-led DAMAs, so check the current list.
No. A DAMA is accessed by employers. The employer must be endorsed by the Designated Area Representative, enter a labour agreement and then nominate the worker under the 482, 494 or 186 visa.
Depending on the DAMA and the occupation, concessions can include a higher age limit, lower English requirements, a salary threshold concession and different experience requirements. They are not automatic and are set by each agreement.
Labour agreements use the Labour Agreement streams of the Skills in Demand visa (subclass 482), the Skilled Employer Sponsored Regional visa (subclass 494) and the Employer Nomination Scheme visa (subclass 186).
It can. Many agreements include a pathway to permanent residence through the 186 Labour Agreement stream, and regional workers on a 494 can apply for the 191 after 3 years. The pathway depends on the terms of the agreement.
Labour agreements are generally in effect for 5 years. DAMA head agreements also run for 5 years.
No. Home Affairs says there is no cost to request a labour agreement. Nomination fees, the Skilling Australians Fund levy and visa charges still apply.
Information checked against official Australian Government sources on 15 October 2026. Requirements and charges change often. This is general information, not migration advice: book a consultation with a Registered Migration Agent (MARN 1170510) before you apply.
Sources: Home Affairs: Labour agreements · Designated Area Migration Agreements · Company-specific labour agreements · Industry labour agreements · Cost of sponsoring
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