How the DAMA (Designated Area Migration Agreement) Works for Regional Employers
A Smarter, More Flexible Way for Regional Businesses to Access Skilled Workers
If you run a business in regional Australia, you’ve probably faced the same challenge — critical jobs going unfilled for months. From aged care and manufacturing to trades, hospitality, and agriculture, local hiring alone often can’t keep pace with business demand.
The Designated Area Migration Agreement (DAMA) was designed for exactly that.
It’s a regional workforce solution that gives employers access to a broader range of skilled and semi-skilled occupations, concessions on English, experience, and salary, and a clearer path to long-term retention through permanent residency.
This guide explains how the DAMA works, what it means for regional employers, and how to start the process if you think it might help your business.
What Is a DAMA?
A Designated Area Migration Agreement (DAMA) is a type of Labour Agreement — a formal contract between the Australian Government and a regional authority (such as a Regional Development Australia (RDA) office, local council, or state department).
Each DAMA allows approved regional employers to sponsor overseas workers in occupations and under conditions that go beyond the standard 482 or 494 visa lists.
In simple terms:
A DAMA is a pre-negotiated framework that gives regional employers access to extra occupations and tailored visa concessions, without having to negotiate their own individual labour agreement.
How the DAMA Works (Employer Step-by-Step)
Because the DAMA operates as a Labour Agreement stream, employers must first be endorsed locally, then approved federally.
1. Regional Authority Negotiates the DAMA
Your region’s Designated Area Representative (DAR) — for example, RDA Orana — establishes an agreement with the Department of Home Affairs (Home Affairs).
This document defines:
The eligible occupations and skill levels for that region
The available concessions (age, English, salary, qualifications)
The endorsement process for local employers
2. Employer Seeks Endorsement from the DAR
Before you can nominate any worker, you must obtain regional endorsement.
The DAR will assess whether:
Your business is financially viable and legally operating in the region
The role is genuine and ongoing
Labour Market Testing (LMT) has been conducted correctly
The occupation is on the local DAMA list
Once approved, you’ll receive a Letter of Endorsement, valid for 12 months, confirming how many positions and which concessions you may use.
3. Apply for a DAMA Labour Agreement (Home Affairs)
With your endorsement in hand, you (or your migration agent) submit a Labour Agreement Request through the Department of Home Affairs portal.
This legally binds your business to operate under the DAMA terms for up to five years — including reporting, salary, and training obligations.
4. Nomination and Visa Application
After the Labour Agreement is approved:
You lodge a Nomination Application for each worker under the Labour Agreement Stream of either the 482 Temporary Skill Shortage visa or the 494 Skilled Employer Sponsored Regional visa.
The worker then lodges their visa application, accessing the specific concessions approved for your region and role.
Key Employer Benefits
1. Access to More Occupations
Standard skilled migration lists exclude many vital regional jobs. DAMAs expand this, allowing you to sponsor for hundreds of additional occupations — including trades, semi-skilled, and service roles such as:
Farm Supervisor, Diesel Mechanic, Café Manager, Aged or Disabled Carer, Truck Driver, Metal Fabricator, Cook, and more.
(For Orana DAMA employers, the full occupation list is available via RDA Orana).
2. Concessions That Reflect Regional Realities
Each DAMA offers targeted flexibility, including:
English concessions (often IELTS 5.0 instead of 6.0)
Qualification and experience concessions for hard-to-fill trades and semi-skilled jobs
Age concessions — some DAMAs allow PR eligibility up to age 55
Salary concessions through Temporary Skilled Migration Income Threshold (TSMIT) flexibility
Example: Many DAMAs allow salaries below the national $73,150 threshold, as long as they meet the regional floor set by the agreement
These concessions can reduce hiring barriers and total wage costs, making sponsorship viable for small regional employers.
3. Improved Retention and Workforce Stability
Workers under a DAMA are required to live and work in the designated area, with PR eligibility usually tied to three years of regional employment.
This creates loyalty and lowers turnover — helping employers build a stable, long-term workforce.
4. PR Pathways for Staff (and Certainty for You)
Unlike many standard 482 occupations, most DAMA frameworks include a pathway to permanent residency via:
The ENS Subclass 186 (Labour Agreement stream), or
The Skilled Regional Subclass 191 visa, after three years in regional employment.
These PR routes increase staff motivation and improve retention.
5. Regional Control and Flexibility
Because each DAMA is managed locally, endorsement decisions are made by people who understand your region’s needs — not by a distant national panel.
This often means faster, more responsive processing and more practical interpretation of “genuine need.”
Costs and Obligations for Employers
Employing workers under a DAMA involves both regional and federal costs.
Ongoing obligations:
Pay at or above the regional DAMA salary floor (TSMIT concession applies)
Maintain records and report annually to both the DAR and Home Affairs
Notify authorities of major changes (role, business structure, early termination)
Provide equitable employment conditions to visa holders
💡 Remember: A DAMA is a formal Labour Agreement — not just a nomination. This means higher compliance expectations than standard sponsorship.
Evidence Employers Must Prepare
Before endorsement, you’ll need to show:
Proof of Labour Market Testing (LMT) — compliant job ads across required platforms, evidence of interviews, and no suitable local candidates.
Business registration and financial statements (showing stability).
Organisational chart and job descriptions showing genuine need.
Proposed salary and employment contract for each role.
This evidence forms the backbone of your endorsement request and later Labour Agreement application.
DAMA vs Standard 482/494 Sponsorship
When a DAMA Makes Sense for Regional Employers
The DAMA pathway is ideal if your business:
Is in a designated DAMA area (check via your RDA or Home Affairs website)
Has long-term roles that are difficult to fill locally
Operates in a sector not well-served by standard occupation lists
Wants to offer workers a clear PR pathway to encourage retention
Has internal capacity to manage compliance and reporting
Industries that benefit most:
Aged care and healthcare
Hospitality and tourism
Agriculture and food production
Construction and engineering
Transport and logistics
Limitations and Cautions
Not all regions have a DAMA — check your local coverage.
Endorsement required — you must apply through your region’s DAR (e.g., RDA Orana).
Increased compliance — as a Labour Agreement holder, you’ll be subject to audits and reporting obligations.
Tied location — you cannot use a DAMA to deploy staff outside the approved area.
Despite these constraints, the commercial and retention benefits for regional employers usually far outweigh the administrative load.
Real-World Example — Orana DAMA (NSW)
The Orana DAMA, managed by Regional Development Australia (RDA) Orana, covers over 300 occupations across central and western NSW.
It includes roles like:
Diesel Mechanic (321212)
Aged or Disabled Carer (423111)
Café or Restaurant Manager (141111)
Agricultural and Horticultural Mobile Plant Operator (721111)
Truck Driver (733111)
Employers seeking endorsement can contact:
📧 [email protected] | 📞 (02) 6885 1488 | 🌐 rdaorana.org.au
Final Thought
The DAMA program offers regional employers a unique opportunity to attract and retain skilled workers that might otherwise be out of reach — while supporting regional growth.
It’s more than a visa program; it’s a strategic workforce framework that gives your business flexibility, access, and stability.
By investing in the DAMA pathway, regional employers can future-proof their operations, reduce turnover, and compete on equal footing with urban businesses.
Actions
If your regional business is struggling to fill skilled roles, our team can help you:
✅ Confirm whether your area is covered by a DAMA
✅ Identify eligible occupations and concessions
✅ Prepare your endorsement and Labour Agreement applications
Related Articles that you may enjoy
Source: AU Visas Employer Guide Series
Disclaimer
The content provided is here is for informational purposes only and does not constitute immigration or legal advice. It is subject to change. Consult an Australian MARA registered agent or lawyer for professional advice before making any application
👉Contact AU Visas today for a Professional Opinion on Your Situation.
Glossary of Key Terms
DAMA – Designated Area Migration Agreement A regional migration framework negotiated between the Australian Government and a local authority that allows employers in that area to sponsor overseas workers in additional occupations and with agreed concessions compared to standard skilled visas.
Designated Area / DAMA Region A specific geographic area covered by a DAMA, such as the Orana region in NSW, the Northern Territory or parts of South Australia. Only employers operating in the designated area can sponsor under that DAMA.
Regional Authority / Designated Area Representative (DAR) The local body (e.g. RDA office, state government unit or council) that manages the DAMA in its region. It assesses employer endorsement applications and liaises with the Department of Home Affairs.
Labour Agreement (DAMA Labour Agreement) The formal agreement between an individual employer and the Department of Home Affairs that sits under the broader DAMA. It authorises that employer to sponsor overseas workers in specific occupations with defined concessions.
Standard Business Sponsorship (SBS) Approval granted by Home Affairs that allows an Australian business to sponsor overseas workers on certain employer-sponsored visas, usually valid for up to five years.
482 Visa – Temporary Skill Shortage (TSS) A temporary employer-sponsored visa used to fill skilled positions when an employer cannot source suitably qualified local workers. Under a DAMA, it is often used in the Labour Agreement stream.
494 Visa – Skilled Employer Sponsored Regional (SESR) A regional employer-sponsored visa that allows skilled workers to live and work in designated regional areas, usually with a pathway to permanent residency. Some DAMAs allow 494 sponsorship within their framework.
186 Visa – Employer Nomination Scheme (ENS) A permanent residency visa that allows approved employers to nominate skilled workers for PR. Many DAMA pathways eventually lead into the 186 ENS Labour Agreement stream.
Skilling Australians Fund (SAF) Levy A compulsory levy paid by sponsors for each nominated worker under most skilled employer-sponsored programs. It funds training for Australian workers and cannot be passed on to the sponsored worker.
Market Salary Rate / Annual Market Salary Rate (AMSR) The typical wage that an equivalent Australian worker would earn for the same role in the same location. Employers must pay at least the AMSR, even where a DAMA allows limited salary concessions against TSMIT.
TSMIT – Temporary Skilled Migration Income Threshold The minimum income threshold that sponsored workers must generally meet. Under some DAMAs, a constrained concession (for example, up to 10% below TSMIT) may apply, provided AMSR is still met.
Endorsement (DAMA Endorsement) The process where the regional authority confirms that the employer, position and proposed concessions meet the DAMA requirements. Endorsement is needed before the employer can apply to Home Affairs for a Labour Agreement.
Skilled Occupation List (SOL) The national list of occupations eligible for standard skilled visas. Many regional roles are not included, which is why DAMAs negotiate their own, broader occupation lists to reflect local needs.
Designated Regional Area (Non-DAMA use) Areas classified by the Government as regional for migration purposes. All DAMA regions are regional, but not all regional areas have a DAMA.
Permanent Residency (PR) Pathway The route that allows temporary visa holders to become Australian permanent residents. Many DAMA arrangements include PR pathways after around three years of regional employment, subject to meeting all criteria.
