DAMA – Designated Area Migration Agreements

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Overview

The Designated Area Migration Agreement (DAMA) scheme is an agreement between the Australian government and a regional state, territory authority. Features of the DAMA include:
 
  • DAMAs are a type of Labour Agreement that offers a pathway to engage migrant workers through the TSS or ENS program
  • They offer increased flexibility in terms of occupation lists, whereby employers can potentially engage a larger range of skilled and semi-skilled workers. 
  • DAMAs may also provide a range of concessions to employers and visa applicants, such as concessions to the minimum salary, English proficiency and age.
  • There are currently 7 DAMAs in place.
 
 

Steps in the process

1. Employer seeks endorsement.

The interested employer must seek endorsement from one of the current regional state/territory authorities that have entered into a DAMA agreement (head agreement) with the Australian government. Requirements may vary from region to region; however, the employer will commonly need to meet these criteria:
 
  • Be lawfully operating in the applicable region for a given period (usually at least 12 months)
  • Conducted suitable labour market testing. The employer must demonstrate that there have been genuine attempts to secure local labour.
  • No adverse business history particularly with regards to meeting its industrial relations, occupational health and safety obligations towards its employees.
  • Demonstrate the business have and will meet terms and conditions for migrant employees that are in line with Australian workplace standards
 

2. The employer applies for Labour Agreement

Once the employer is endorsed by the regional authority, it can apply for a Labour Agreement with the Department of Home Affairs. 
 

3. The nomination of position and visa application

These steps are the same as those for a Temporary Skills Shortage (TSS) subclass 482 visa, namely:
 
  • A suitable candidate is identified
  • The nomination of position is lodged, including payment of the Skilling Australians Fund (SAF) levy
  • Apply for TSS visa (subclass 482)

Click here for more information on TSS Visa. 

 

Our view

The DAMA scheme offers some solid incentives for regional employers facing genuine skills shortages. It will be interesting how the scheme fits in with the upcoming regional visa options in November 2019. 
 
There are some questions that are yet to be answered:
 
  • Will the new regional visas (subclasses 491 and 494) in November have occupation lists that are as broad as the options available on the DAMAs?
  • If so, considering that the Skilling Australians Fund (SAF) levy is applicable to DAMAs and the new regional visas, will the other DAMA concessions (e.g. salary and/or English proficiency) be attractive enough to employers and applicants?
 
More information on the seven current DAMAs can be found at:
 
 
 
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Published on: 24/10/2019

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