Everything workers and businesses need to know about the DAMA visa requirements

There are three main types of visas that a worker can apply for under a DAMA visa. Find out more about the DAMA visa requirements for employers and applicants for each visa type below:

A 482 SID visa is temporary and can be granted for up to four years, but the exact terms will depend on the sponsor’s DAMA agreement and its requirements. A SID visa can provide a pathway to permanent residency in Australia via the subclass 186 visa.

To meet 482 DAMA visa requirements, the visa applicant must:

  • Have the relevant skills for the nominated position (e.g. a qualification and/or work experience)
  • Genuinely intend to work in the nominated position
  • Meet any licensing, registration or professional membership requirements
  • Meet health and character criteria and have made necessary arrangements for health insurance for their stay in Australia
  • Have the level of English proficiency specified by the DAMA labour agreement

The employer must: 

  • Have a business that holds a valid DAMA labour agreement
  • Be actively and lawfully operating in Australia
  • Meet all DAMA requirements, such as having a genuine need for skilled employees and an inability to source suitable Australian employees

Unless an exemption applies, the nominated position must:

  • Be a genuine, full-time position included in the DAMA labour agreement
  • Have a salary that is:
    • At least $76,515 per year (excluding non-monetary benefits) (a 10% discount applies to some occupations)
    • At least the annual market salary rate for the nominated occupation – the same that an Australian would earn for performing an equivalent role (note: an exception to this requirement applies if the salary is more than $250,000 per year)
  • Have the same conditions of employment that would apply to Australians doing equivalent work in the same location

A 494 SESR visa can be granted for up to five years, depending on the sponsor’s DAMA conditions. The SESR visa is a provisional visa that can provide a pathway to permanent residency in combination with the 191 Permanent Residence (Skilled Regional) visa.

To meet 494 DAMA visa requirements, the visa applicant must:

  • Be under 45 years of age for a SESR visa (unless a concession applies)
  • Have the relevant skills for the nominated position (evidenced via qualification and/or work experience)
  • Genuinely intend to work in the nominated position
  • Meet any licensing, registration or professional membership requirements
  • Meet health and character criteria and have made necessary arrangements for health insurance for their stay in Australia
  • Have the level of English proficiency specified by the DAMA

The employer must: 

  • Have a business that holds a valid DAMA labour agreement
  • Be actively and lawfully operating in Australia
  • Meet all DAMA conditions, such as having a genuine need for skilled employees and an inability to source suitable Australian employees

Unless an exemption applies, the nominated position must:

  • Be a genuine, full-time position included in the DAMA labour agreement
  • Have a salary that is:
    • At least $76,515 per year (excluding non-monetary benefits) (a 10% discount applies to some occupations)
    • At least the annual market salary rate for the nominated occupation, that is the same that an Australian would earn for performing an equivalent role (note: there is an exemption to this requirement if the salary is more than $250,000 per year)
  • Have the same conditions of employment that would apply to Australians doing equivalent work in the same location

The 186 ENS visa is the second stage of a 482 SID visa, and allows the visa holder permanent residency in Australia. The visa applicant must be nominated by their employer, and generally, the visa applicant will need to have worked in the sponsoring business for at least three years as a 482 visa holder.

To meet 186 DAMA visa requirements, the visa applicant must:

  • Have held the 457 Temporary Work (Skilled) visa or 482 Skills in Demand (SID) visa, issued under the DAMA to work on a full-time basis in the nominated position (or a position closely related) of your sponsoring business
  • Be performing the tasks of the nominated position and working in the role for the period required (as specified in the DAMA)
  • Have competent English (unless a concession applies)
  • Be under 45 years of age
  • Meet any licensing, registration or professional membership requirements
  • Satisfy the relevant health and character criteria

The employer must:

  • Still be actively and lawfully operating in Australia
  • Have a DAMA labour agreement in effect with the Australian Government
  • Genuinely need the applicant to work in the nominated position and have the capacity to employ the worker in this position for at least two years
  • Be compliant with Australian immigration and workplace relations law

Unless an exemption applies, the nominated position must:

  • Be full-time and available for at least two years from the time the visa is granted
  • Be an occupation included in the DAMA
  • Have a salary that is:
    • At least $76,515 per year (excluding any non-monetary benefits) unless exempt
    • At least the annual market salary rate for the nominated occupation
  • Have the same conditions of employment that would apply to Australians doing equivalent work in the same location

Everything employers need to know about DAMA sponsorship

Businesses that sponsor overseas workers for SID and SESR visas under a DAMA labour agreement must follow certain obligations imposed by the Department of Home Affairs (DOHA). These conditions help protect overseas workers and make sure the DAMA program runs smoothly.

A DAMA sponsor must not try to recover any of the costs associated with applying for a DAMA labour agreement or nominations, or any costs related to recruiting overseas workers for nominated positions. However, sponsors may be able to recover GST or claim a tax deduction for the fees associated with applying for a DAMA. We recommend seeking independent tax advice on this matter.

Sponsors must also maintain certain records, including their annual turnover, and records of each Skilling Australians Fund levy paid.

For more information on sponsorship requirements, please contact our office.

The Skilling Australians Fund (SAF) levy is a fee that employers must pay when they sponsor an overseas skilled worker – the levy feeds back into the community by providing funds for training and apprenticeships for local Australians. The levy amount varies depending on the visa being sponsored and the employer’s annual turnover.

Mario Amor, Principal Lawyer at PAX Law and solicitor member of the Law Society of New South Wales

How to apply for a DAMA visa in Australia

DAMA agreements are a two-step process. First, the DAMA head agreement is negotiated between the Australian Government and a Designated Area Representative (DAR) – usually state or territory governments or regional bodies. After this, individual labour agreements can be negotiated between employers and the Australian Government.

Stage one: DAR endorsement request

First, a head agreement is made between the Australian Government and the Designated Area Representative (DAR). DARs collaborate with employers and stakeholders in their region to get a better understanding of both their labour needs and community views. DAMA labour agreements cover a five-year scope, and the DAR reviews them annually.

Stage two: DAMA labour agreement request

After the initial agreement has been made, businesses are able to seek individual DAMA labour agreements under the head agreement. Before a business can get an individual agreement, it must first apply for and be granted an endorsement from the DAR.

If a DAMA labour agreement is approved, a business can nominate and sponsor skilled and semi-skilled overseas workers for occupations agreed upon in the head agreement, and their DAMA is generally in effect for a five-year period.

DAMA regions

There are currently 13 DAMA labour agreements in place across Australia.

South Australia DAMA

There are two DAMAs in South Australia (SA):

Adelaide City Technology and Innovation Advancement, SA DAMA

This agreement focuses on Adelaide’s high-tech growth industries, including defence, space,
technology and advanced manufacturing industries. The Adelaide City Technology and Innovation Advancement Agreement is the DAMA covering metropolitan Adelaide.
The Greater Adelaide Planning Region is the planning region constituting Greater Adelaide (clause 5), established as part of the Planning, Development and Infrastructure Act 2016.

South Australia Regional, SA DAMA

This agreement focuses on South Australia’s regional high-growth industries, including agribusiness, forestry, health and social services, tourism and hospitality, construction and mining. The South Australian Regional Workforce Agreement is the DAMA covering the entire state of South Australia.

Northern Territory DAMA

There is one Northern Territory DAMA labour agreement in place, and it covers the entire region. To take part in the DAMA program, employers need to be endorsed by MigrationNT and enter into a five-year agreement with the Department of Home Affairs.

Source: The Northern Territory Government – About the Northern Territory Designated Area Migration Agreement

DAMA visa occupation list

Each state or territory has their own list of DAMA visa occupations. Find out more below about South Australia (SA) and the Northern Territory’s (NT) DAMA occupation list.

SA DAMA occupation list

Existing DAMA agreements apply to a range of skilled job titles in a variety of industries. To apply for these positions, there are requirements that you’ll need to meet, including formal qualifications or previous professional experience in the relevant industry. 

To find out more about the current opportunities, head to the Government of South Australia’s Skilled Business and Migration website for a full list of approved occupation profiles.

Source: Government of South Australia – Skilled Business and Migration – DAMA Occupation List

NT DAMA occupation list

There are over 300 occupations covered by the NT DAMA agreement across a range of industries. Requirements that apply to the visa applicant will depend on the occupation and visa they’re seeking.

To find out more about the current opportunities available, see the NT DAMA occupations list here.

Source: Northern Territory Government – Department of Trade, Business and Asian Relations – NT DAMA occupations list

FAQs

A DAMA labour agreement enables businesses to hire foreign skilled workers for positions that can’t be filled locally. The Australian Government creates the head DAMA labour agreement, and individual businesses create their own agreements under those conditions.

It can take several weeks to prepare and lodge a DAMA visa application. After lodgement, the DOHA processes up to 90% of DAMA visa applications within 5 months. However, the processing time may vary due to a number of factors, including the complexity of the case, perceived risk factors and processing priorities.

Age limits that apply will depend on the visa. The SESR and ENS visas have an age limit of 45 years old, while the SID visa has no age restriction. Concessions may apply, depending on the specific region and role, so speak to your PAX lawyer if you’d like to explore more options.

Yes, you can get Australian permanent residency via a DAMA visa. The 186 Employer Nominated Scheme (ENS) is one such pathway.

“We typically see DAMA labour agreements processed within 4–12 weeks,” says Mario Amor, Principal Lawyer at PAX Law and a solicitor member of the Law Society of New South Wales. “DAMA labour agreements are given a high priority for processing, but the overall time will depend on your individual circumstances, like the occupation code, designated area, the size of the business, etc. Once a DAMA is approved, you must sign and return it within four weeks.”

Next steps

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