Designated Area Migration Agreements (DAMA) – What employers need to know

What is a DAMA?

A Designated Area Migration Agreement (DAMA) is a formal agreement between the Australian Government and a state, territory, or regional authority. Each DAMA runs for up to five years and is designed to address chronic and region-specific labour shortages by allowing employers to sponsor overseas workers under concessional arrangements not available through standard employer-sponsored visas.

DAMA frameworks typically allow access to:

• A broader range of skilled and semi-skilled occupations
• Concessions to English language requirements
• Salary concessions (subject to minimum market and program thresholds)
• In some cases, age concessions for permanent residence
• Clear pathways to permanent residency where ongoing labour need exists

Importantly, a DAMA does not create a visa in itself. It operates alongside existing employer-sponsored visas, primarily:

• Subclass 482 – Temporary Skill Shortage (TSS) visa
• Subclass 494 – Skilled Employer Sponsored Regional (Provisional) visa
• Subclass 186 – Employer Nomination Scheme (TRT stream), where applicable under the DAMA terms

Current DAMA landscape in Australia

Since 2019, the DAMA program has expanded significantly.

There are now multiple DAMAs operating across Australia, each with its own occupation list, concessions, and endorsement criteria. These include (but are not limited to):

• Northern Territory DAMA II (expanded and replaced the original NT DAMA)
• Great South Coast DAMA (south-west Victoria)
• Far North Queensland DAMA (Cairns and surrounding regions)
• Orana DAMA (western New South Wales)
• South Australia DAMA (state-wide, excluding metropolitan Adelaide in some streams)
• Pilbara DAMA (Western Australia)
• Kimberley DAMA (Western Australia)

Each DAMA is administered by a Designated Area Representative (DAR), usually a regional development authority or state body, which:

1. Assesses local labour market need
2. Endorses eligible employers
3. Confirms that the proposed role meets DAMA criteria

While DAMAs differ by region, most now provide clear temporary to permanent pathways, particularly via the Subclass 494 visa and, after meeting residence and employment requirements, permanent residence.

Potential impact on skilled workers

Skilled and semi-skilled workers sponsored under a DAMA must:

• Work only in the designated DAMA region
• Remain employed by the approved sponsoring employer, unless a new sponsor is approved within the permitted timeframe

As with standard Subclass 482 and 494 visas, visa holders who cease employment have a limited period to secure a new approved sponsor or depart Australia. If a visa holder leaves the DAMA region or works outside the approved terms, visa cancellation remains a real risk.

The Federal Government continues to emphasise regional migration as a policy lever to support population distribution and economic growth. However, DAMAs are now clearly positioned as labour market tools, not population policy fixes. Infrastructure capacity, housing availability, and community integration remain key considerations in how DAMAs are structured and renewed.

For workers, DAMAs can offer genuine long-term opportunities, but only where the role is sustainable and the employer is committed to compliance and retention.

How can I get involved?

If your business is struggling to find suitably skilled local staff, a DAMA may provide a practical and lawful solution, but only if it is approached strategically.

DAMA sponsorship involves:

• Endorsement from the regional authority
• Labour market testing and workforce planning evidence
• Ongoing compliance obligations
• Careful alignment between business needs and visa conditions

In addition to DAMAs, the Department of Home Affairs continues to operate other employer pathways, including:

• Labour Agreements
• The standard Subclass 482 and 494 programs
• Permanent residence options for established sponsored workers

Roam Migration Law can assist you to assess whether a DAMA is appropriate for your business, identify the correct regional framework, and manage the process end-to-end – from workforce planning through to sponsorship and permanent residence pathways.

If you are considering overseas recruitment, getting the structure right at the outset is critical. Done properly, a DAMA can be a powerful tool. Done poorly, it can become an expensive compliance risk.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.