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DAMA Explained: How Designated Area Migration Agreements Work for Employers and Skilled Workers

Understand how Designated Area Migration Agreements work, who can access them, the employer endorsement process, available visa pathways and why a DAMA is not a visa.

A Designated Area Migration Agreement --- usually called a DAMA ---
can give employers in an approved region access to overseas workers
where the standard skilled migration program does not meet local
workforce needs.

But a DAMA is not a visa, and an individual worker cannot apply for
a DAMA on their own.

It is a regional labour-agreement framework. An eligible employer must
operate in the designated area, obtain endorsement from the relevant
Designated Area Representative (DAR), secure an individual labour
agreement with the Australian Government, and then nominate an overseas
worker under an available visa pathway.

Home Affairs currently lists 13 DAMAs across Australia and is
supporting a transition towards state and territory-led DAMAs.

Here is how the system works.

What is a DAMA?

A DAMA is a formal agreement between the Australian Government and a
state or territory government or regional authority.

It allows a designated region to respond to local labour shortages
through an agreed list of occupations and, where negotiated, concessions
to standard skilled visa requirements.

A DAMA operates through two levels:

  1. a head agreement between the Australian Government and the
    region's Designated Area Representative
  2. an individual DAMA labour agreement between the Australian
    Government and an endorsed employer in that region

Workers do not access the DAMA directly.

They need an eligible employer operating in the designated region to
sponsor them for an occupation covered by the relevant DAMA.

Why do DAMAs exist?

Standard employer-sponsored visa programs do not always cover every
occupation or workforce need in regional Australia.

DAMAs are designed to give designated regions more flexibility to
address their particular economic and labour-market conditions.

Depending on the head agreement, a DAMA may provide access to
occupations not available through the standard skilled migration
program, skilled or semi-skilled occupations identified as regional
shortages, and agreed concessions to some standard visa eligibility
requirements.

The exact occupations, concessions and conditions are not the same
across every DAMA. Employers and workers therefore need to check the
specific head agreement that covers the relevant region.

Is a DAMA a separate visa?

No.

There is no visa subclass called a "DAMA visa".

Individual DAMA labour agreements can use one or more existing
employer-sponsored visa programs:

  • Skills in Demand (subclass 482)
  • Skilled Employer Sponsored Regional (Provisional) (subclass 494)
  • Employer Nomination Scheme (subclass 186)

Which visa pathways are available depends on the terms of the relevant
DAMA and the employer's individual labour agreement.

Being in a DAMA region or having an occupation on a DAMA list does not,
by itself, give a worker a visa pathway.

Can a skilled worker apply directly through a DAMA?

No. An individual cannot directly access a DAMA.

Home Affairs states that a worker needs to be sponsored by an employer
operating in the designated region and for an occupation specified in
the DAMA head agreement.

The process is employer-led. A prospective worker may identify an
occupation that appears on a regional DAMA list, but the worker still
needs an eligible employer willing and able to use that DAMA.

How does the DAMA process work for an employer?

The process generally involves several stages.

1. Check the relevant DAMA

The employer first needs to establish that the business operates within
the designated region, the occupation is covered by the relevant head
agreement, the DAMA is appropriate for the workforce need, and the
business can meet the regional endorsement requirements.

Each Designated Area Representative publishes information about the
locations, occupations and endorsement process for its DAMA.

2. Seek endorsement from the Designated Area Representative

Before requesting an individual DAMA labour agreement from Home Affairs,
the employer must obtain endorsement from the relevant DAR.

The DAR assesses the employer against the regional DAMA requirements. An
endorsement is an important step, but it is not itself a visa grant or a
Home Affairs labour agreement approval.

3. Request an individual DAMA labour agreement

After endorsement, the employer can lodge a labour agreement request
through ImmiAccount.

Home Affairs assesses labour agreements on a case-by-case basis.

If approved and executed, the individual labour agreement sets out
matters such as the occupations the employer may nominate, available
visa programs, nomination ceilings, agreed concessions and the terms the
employer must comply with.

Individual DAMA labour agreements are generally in effect for five
years.

4. Nominate the worker

Once the labour agreement is in effect, the employer can lodge a
nomination for an overseas worker under an available visa pathway and
occupation covered by the agreement.

The labour agreement does not remove the nomination stage.

5. The worker applies for the visa

The employer provides the nomination Transaction Reference Number (TRN)
to the worker.

The worker then lodges the relevant visa application and must satisfy
the visa requirements that apply under the labour agreement.

A DAMA pathway therefore involves more than simply finding an occupation
on a list.

What concessions can a DAMA provide?

A DAMA head agreement can contain negotiated concessions to standard
skilled visa settings.

The concessions available depend on the particular DAMA, occupation and
visa pathway. They should never be assumed.

A regional DAMA may, for example, contain agreed variations relating to
occupation access, English requirements, age requirements, salary
settings, skills, qualifications or work experience, and pathways
associated with temporary or permanent employer sponsorship.

Not every occupation receives every concession. An employer and worker
need to check the exact settings that apply to the relevant occupation
under the specific DAMA.

Does a DAMA guarantee permanent residency?

No.

Some DAMA arrangements can provide access to permanent
employer-sponsored pathways, including the subclass 186 visa where the
relevant agreement allows it.

The subclass 494 program also has its own regional permanent-residence
pathway under the migration framework.

But being employed under a DAMA does not automatically grant permanent
residency. The available pathway, timing and eligibility requirements
depend on the relevant labour agreement, visa subclass and the worker's
circumstances.

Do employers still need to recruit Australians first?

Yes.

DAMAs are intended to address genuine workforce shortages, not replace
Australian recruitment.

Home Affairs states that employers seeking access to a DAMA must
demonstrate genuine attempts to recruit Australian citizens and
permanent residents first.

Labour market testing requirements can also apply at the nomination
stage according to the relevant labour agreement and visa pathway.

Employers should keep appropriate recruitment evidence rather than
treating a DAMA occupation list as proof that local recruitment is
unnecessary.

Is every business in a DAMA region eligible?

No.

Operating in a designated region is only one part of the process.

The employer still needs to meet the requirements of the relevant DAR
and Home Affairs. The exact endorsement requirements can differ between
DAMAs.

What if an Industry Labour Agreement already covers the business?

A DAMA is not necessarily the correct labour-agreement pathway for every
employer.

Home Affairs states that a DAMA will not be endorsed where the industry
is covered by an Industry Labour Agreement.

Industry Labour Agreements operate under fixed settings for particular
industries, while DAMAs respond to the needs of a designated geographic
area.

Employers should therefore identify the appropriate labour-agreement
type before starting the DAMA endorsement process.

How many DAMAs are currently operating?

Home Affairs currently lists 13 DAMAs in place across Australia.

They include arrangements covering areas in South Australia, Western
Australia, Queensland, Victoria, New South Wales and the Northern
Territory.

The Department also states that it is currently supporting a
transition to state and territory-led DAMAs.

That makes it particularly important to check current Home Affairs and
DAR information rather than relying on an old occupation list or
regional guide.

What should an employer check before considering a DAMA?

A useful starting point is to check:

  • whether the business operates in a current DAMA region
  • whether the required occupation is included in that DAMA
  • whether standard employer sponsorship is available first
  • whether an Industry Labour Agreement applies
  • what endorsement requirements the DAR imposes
  • what concessions, if any, apply to the occupation
  • which visa pathways are available
  • whether the business can demonstrate genuine local recruitment
    efforts
  • whether the proposed worker can meet the applicable visa
    requirements

A DAMA can create options that are not available through the standard
skilled migration program, but it is still a structured
employer-sponsored process.

What should a skilled worker check?

If you are a worker considering a DAMA pathway, start with the employer
rather than treating the DAMA as an independent visa application.

Check:

  • whether the employer operates in the designated region
  • whether your occupation is covered by that DAMA
  • whether the employer is endorsed or prepared to seek endorsement
  • which visa subclass the employer intends to use
  • what concessions actually apply to your occupation
  • what skills, experience, English, age and other requirements you
    still need to meet

An occupation appearing on a DAMA list is not, by itself, an offer of
sponsorship or a visa entitlement.

Considering a DAMA pathway?

For employers, the first question is whether a DAMA is the right
sponsorship framework for the position and region.

For skilled workers, the key question is whether there is an eligible
employer that can access the relevant DAMA for your occupation.

Hans Immigration Services can review the proposed role, location and
sponsorship pathway and help you understand whether a DAMA or another
employer-sponsored option may be appropriate.

Book a consultation with Hans Immigration Services to discuss your
employer-sponsored migration options.

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