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
| NO | DESCRIPTION |
|---|---|
| 1 | The Designated Area Representative performs ongoing monitoring of labour market conditions in the designated area |
| 2 | The Designated Area Representative endorse employers |
| 3 | The Designated Area Representative allocates occupations and numbers of positions to employers |
| 4 | The Department of Immigration assesses the employer for suitability to enter in a labour agreement |
| 5 | The Department of Immigration sign labour agreements assesses nomination request from employer |
| 6 | The Department of Immigration processes visa request |
| 7 | The Designated Area Representative may request adjustment to number of positions allocated to an employer (if required) |
| 8 | The Designated Area Representative will evaluate DAMA (following 2nd year anniversary) |
| 9 | DAMA operational meetings will be held by NT government, the Department of Immigration, and the Designated Area Representative |
| 10 | The Department of Immigration will also conduct operational integrity |
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?
+How businesses are assessed as being eligible?
+How to show unable to employ locally? ie. Labour Market Testing (LMT)
+What qualifications and experience do the foreign worker need to show?
+Can English language & salary requirement be lowered?
What are the Steps to Apply for DAMA?
| STEP | DESCRIPTION | |
|---|---|---|
| 1 | Contact Us | |
| 2 | We will ask you a series of questions and fill up a questionnaire. This is an initial assessment. | |
| 3 | If you fail the initial assessment, we will provide you a guide on setting your business up to be eligible. We will also provide you with a variety of other pathways. However, if you pass the initial assessment, we will commence making a request for endorsement with the Department of Trade, Business and Innovation (NT) | |
| 4 | Our office will request a list of documents and comprehensive information in preparation for t he request to access a labour agreement under the NT DAMA | |
| 5 | On receiving the information you provide, we will assist you with refining them. This process involves going back and forth numerous times. | |
| 6 | We will write to the relevant stakeholders and seek to attend a meeting with them to discuss your business' needs. | |
| 7 | Our office will perform a 3-point check. Human Error, Legal Check, and Final Check (which involves a Senior Lawyer decline the application using subjective criticism) | |
| 8 | Your request for endorsement will be submitted to the NT government | |
| 9 | If you business is eligible to access NT DAMA, a letter of endorsement and copies of the supporting documenst will be sent to the Australian Government | |
| 10 | On being notified, we will subsequently apply for a labour agreement through the Department of Immigration | |
| 11 | If the Labour Agreement is approved, you may begin to sponsor foreign workers by submitting a nomination application for your business identifying the foreign worker that is suitably skilled and experienced for the occupation that has NT DAMA approval. You must provide each worker with a settlement package (which will be provided to you) before the worker lodges their visa application. | |
| 12 | Under some occupations the department must verify whether the overseas worker, that the businesses intends to nominate, has qualifications and / or experience that match those required for the nominated NT DAMA occupation. When the verification is completed the department will issue a skills verification letter to be included with the overseas workers visa application. | |
| 13 | The Visa application is usually lodged once the nomination application is approved. But in urgent cases, it may be possible to lodge the Nomination Application and Visa application at the same time. | |
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