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Regional Australia Skills Shortages – What is a DAMA?

Australia’s workforce needs are constantly evolving over time. However, there are some trends that remain steady. Labour shortages in Australia’s regional areas is one issue that continues to exist, fluctuates in severity, and can be significant due to a variety of reasons. Some reasons for the labour shortage can include the lack of suitability of regional area for the labourer – remoteness of the area can lead to limited access to education and training opportunities, a lack of career pathways, and the pull of metropolitan areas like Melbourne or Brisbane where there are higher paying roles. This pushes the labour force, particularly those in the younger and middle age bracket, to not consider regional Australia as a viable option to live, work and to raise their family.

Regional Australia’s skill shortages sometimes cannot be filled through standard migration programs given the requirements. For example, the employer sponsored subclass 482 visa requires the employer to pay a minimum annual salary of $73,150 excluding superannuation. There is currently no exemption to this, and this will go up to $76,515 from 1 July 2025. Another example is the employer sponsored subclass 186 visa requiring the primary visa applicant to be under 45 years of age unless, depending on which stream they are eligible for, can demonstrate they meet one of the allowable concessions such as earning a yearly salary for at least 2 years being above the Fair Work High Income Threshold (FWHIT). This year the FWHIT was $175,000, a minimum salary that most people do not earn. Depending on which visa is being considered, a business in regional Australia may have a highly suitable candidate, but if they’re over 45, or have a salary slightly under the minimum, cannot employ that candidate.

In recognition of these issues in regional Australia, the Australian Government continues to uphold the framework called the Designated Area Migration Agreement (DAMA). A DAMA is a formal agreement between the Australian Government and a state or territory government or regional authority that allows endorsed businesses to access concessions to the standard migration requirements. This provides regional areas with greater access to overseas workers, allowing regional business owners to respond to their unique economic and labour market conditions with more flexibility.

Some key concessions accessible under a DAMA can include:

  • Occupation Flexibility: DAMAs often include occupations not listed on standard skilled occupation lists, expanding opportunities for both employers and migrants.
  • Concessions: Employers may be able to access concessions to standard visa requirements, such as English language proficiency, age limits, and/or salary thresholds.
  • Pathway to Permanent Residency: Most DAMA visas (typically subclass 482 or 494) provide a route to permanent residency through subclass 186 or 191 visas that they would not otherwise have in some circumstances.

There are currently 13 active DAMAs across Australia, including in regions in Northern Territory, South Australia, Queensland, Western Australia, Victoria and New South Wales. Each DAMA is region-specific, and the occupations and concessions vary depending on local needs. Gaining access to a DAMA can be a complex and confusing process. We help you in making the steps and requirements clear.

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Nevett Ford Lawyers Melbourne

 

Telephone: +61 3 9614 7111

Email: melbourne@nevettford.com.au

Visit our website: www.nevettford.com.au