What is Designated Area Migration Agreement (DAMA)?

The Australian government has developed the DAMA programme to supplement the workforce strategies of states, territories and regions to support economic performance and help them adjust to changing economic conditions. Australia’s economy is complex and the circumstances affecting state and territories vary considerably. A DAMA provides flexibility for states, territories and regions to respond to their unique economic and labour market conditions through an agreement-based framework under which employers in areas experiencing skills and labour shortages can sponsor skilled and semi-skilled overseas workers. The over-arching nature of the agreement allows employers streamlined access to a broader range of overseas workers than allowed under the standard temporary skilled migration programme, without the need to individually negotiate terms and conditions.

Currently, there are only 1 DAMA in place, i.e. the new Northern Territory Designated Area Migration Agreement (NT DAMA). It is new because it is Northern Territory government’s renewal to the 1st DAMA. The NT DAMA lets the Northern Territory (NT) employers sponsor skilled and semi-skilled overseas workers for positions they are unable to fill with local workers. It is the 2nd version of the NT DAMA and applies to the whole of the NT and is tailored to address current and emerging labour market shortages and local terms and conditions of employment.

NT DAMA utilises the labor agreement stream of the Temporary Skill Shortage visa (subclass 482), businesses enter into a labour agreement with the Australian Government and workers are then granted a subclass 482 visa.

The key elements of NT DAMA are:

• pathways to permanent residency for NT DAMA visa holders (including transitional arrangements for existing visa holders)

• a broad range of occupations that reflect NT skilled and semi-skilled shortages, with no caveats to apply

• English language concessions for some occupations

• salary concessions that reflect NT market rates, ensuring that worker terms and conditions of employment are not eroded, and NT businesses and consumers are not subjected to inflationary costs

• a range of risk and integrity actions to ensure that the rights of both employees and employers are protected

• a five year agreement to reduce red tape.

Users of the Northern Territory Designated Area Migration Agreement

Businesses can access the NT DAMA if they are actively operating in the NT and:

• are viable and have been operating for at least 12 months

• have no history of not meeting its obligations to employees

• are looking to employ overseas workers to fill full-time positions with duties that align with one of the occupations on the NT DAMA list

• can demonstrate they cannot fill the position locally with Australian citizens or permanent residents

• can provide terms and conditions of employment to overseas workers that are in accordance with those offered to Australian workers employed in the region.

How DAMA works in a nutshell

What is the Application Process?

Employers within the designated area can request the endorsement of the designated area representative to access the DAMA. Once the designated area representative has endorsed an employer, the employer should notify the department of the endorsement and provide information necessary for the department to assess whether the employer meets the requirements to become an approved sponsor and enter into a labour agreement. The designated area representative’s endorsement is a necessary pre-requisite before the department can consider whether an employer meets the requirements to become an approved sponsor under a DAMA labour agreement.

Endorsement Requirements

The department does not prescribe how a designated area representative should assess employers for DAMA endorsement and the designated area representative may determine its own endorsement criteria. The department requires, however, that a decision to endorse an employer should be based on consideration of risk that the employer might pose to the integrity of the programme and whether the employer’s participation in the DAMA will support its objectives. They must also confirm that the employer has genuinely sought to recruit Australian citizens or permanent residents into the requested occupations. Any endorsement should be provided in writing confirming:

• that a labour agreement with the employer would support the objectives of the programme;

• the employer has genuinely sought to recruit Australian citizens or permanent residents into the requested occupations within the previous 6 months;

• that the designated area representative has monitored the labour market, and the requested occupations and number of overseas workers is reasonable in the context of local labour market conditions;

• the occupations the employer can access;

• any concessions the employer can access; and

• the number of nominations (or “ceiling”) the employer can initially access for each occupation.

How Long is Endorsement Valid?

Endorsement to access the Northern Territory Designated Area Migration Agreement (NT DAMA) is for up to five years, however initial allocation of occupation types and number of vacancies are for the first year only. Businesses seeking to access new overseas workers will need to apply to the Department of Trade, Business and Innovation each subsequent year. Most applications are for additional numbers of the same endorsed occupation type(s), however additional occupations included in the agreement can be applied for.

What are the Requirements for DAMA?

What are the Steps to Apply for DAMA?

What We Like About the DAMA?

Statistics accessed under the Freedom of Information Act 1982 shows that back in August 2015, The Northern Territory Department of Business (NT DoB) has endorsed 20 businesses for a labour agreement under the NT DAMA

Of the NT DAMA requests approved/endorsed by the Department of Immigration, these occupations were requested:

• Cook – ANZSCO 351411

• Bar Attendant (Supervisor) – ANZSCO 431111

• General Clerk – ANZSCO 531111

• Chef – ANZSCO 351311

• Hotel Service Manager – ANZSCO 431411

• Waiter (Supervisor) – ANZSCO 431511

• Storeperson – ANZSCO 741111

• Tour Guide – ANZSCO 451412

• Retail Manager (General) – ANZSCO 142111

• Child Care Worker – ANZSCO 421111