Australia's new Skills in Demand visa is a four year temporary work visa designed to help Australian employers fill critical labour shortages. Replacing the former Temporary Skill Shortage (TSS) visa, it provides greater flexibility for workers and clearer pathways to permanent residency. The visa is divided into three streams based on occupation and skill level. This guide focuses on the Labour Agreement stream, also known as the Essential Skills Pathway.
Overview of the Labour Agreement Stream
The Labour Agreement stream allows Australian employers to sponsor overseas workers when:
- The occupation is not included on the Core Skills Occupation List (CSOL), or
- There are unique workforce shortages that cannot be addressed through standard employer sponsored visa programs.
This pathway is commonly used by industries experiencing ongoing labour shortages, particularly in regional Australia and specialised sectors.
Key Characteristics of the Labour Agreement Stream
Access to Non Standard Occupations
Employers can sponsor workers in occupations that are not on the Core Skills Occupation List (CSOL), provided those occupations are covered by an approved labour agreement.
Customised Visa Conditions
Labour agreements may include negotiated concessions, such as:
- Lower salary thresholds in approved industries.
- Reduced English language requirements.
- Lower work experience requirements.
Any concessions are assessed individually and must be approved by the Department of Home Affairs.
Employer Led Approval Process
Before sponsoring a worker, an employer must first secure an approved labour agreement. This generally requires demonstrating:
- A genuine labour shortage.
- Evidence of attempts to recruit Australian workers.
- A commitment to training the local workforce.
Pathway to Permanent Residency
Many labour agreements include a pathway to permanent residency, depending on the terms of the agreement and whether the applicant meets the eligibility requirements at the time of applying.
Common Labour Agreement Examples
Aged Care Industry Labour Agreement
One of the most widely used labour agreements supports employers in the aged care sector, allowing sponsorship for roles such as:
- Personal Care Assistants.
- Nursing Support Workers.
Key benefits include:
- Concessions on English language and salary requirements.
- A clear pathway to permanent residency.
- Support for addressing critical workforce shortages in aged care.
Designated Area Migration Agreements (DAMA)
DAMAs are region specific labour agreements negotiated between the Australian Government and regional authorities. Examples include:
- Northern Territory DAMA.
- South Australia DAMA.
- Far North Queensland DAMA.
Key features include:
- Access to broader occupation lists, including some semi skilled occupations.
- Possible concessions for age, salary, and English language requirements.
- A strong focus on supporting regional Australia.
Company Specific Labour Agreements
Some large organisations negotiate individual labour agreements directly with the Australian Government. These are commonly used for:
- Major infrastructure and construction projects.
- Hospitality businesses.
- Agriculture and food processing companies.
Each agreement is tailored to the workforce needs of the employer.
General Eligibility Requirements
To apply under the Labour Agreement stream, you must:
- Be sponsored by an employer with an approved labour agreement.
- Work in an occupation covered by that agreement.
- Meet the required salary, skills, and English language requirements.
- Satisfy Australia's health and character requirements.
Skills in Demand Visa Cost
| Charge | Core Skills stream | Labour Agreement stream | Specialist Skills stream |
|---|---|---|---|
| Base Application | $4,015 AUD | $4,015 AUD | $4,015 AUD |
| Additional Applicant 18 and Over | $4,015 AUD | $4,015 AUD | $4,015 AUD |
| Additional Applicant Under 18 | $1,005 AUD | $1,005 AUD | $1,005 AUD |
| Subsequent Temporary Application | $700 AUD | $700 AUD | $700 AUD |
* Non-Internet Application Charge is not applicable for this visa subclass.
Important Considerations
- Labour agreements are complex and highly regulated.
- Not all employers can access this pathway.
- Conditions vary significantly between agreements.
- Applications involve an additional labour agreement approval stage.
Final Note
The Labour Agreement stream is a powerful but highly specialised pathway, particularly for applicants whose occupations are not available under standard visa streams. Because every labour agreement has its own requirements and conditions, seeking professional advice is strongly recommended.
Next Steps
If you believe you may be eligible under a Labour Agreement, or your employer is considering this pathway, book a consultation with our registered migration professionals. We can assess your circumstances, explain your options, and help determine whether this is the right pathway for you.
Frequently Asked Questions
What is the Labour Agreement stream (Essential Skills Pathway)?
The Labour Agreement stream, also referred to as the Essential Skills Pathway, allows Australian employers to sponsor overseas workers under an approved labour agreement, typically where the occupation isn't on the Core Skills Occupation List or where a genuine, ongoing labour shortage exists.
Who can use the Labour Agreement stream?
This stream is generally used by employers in industries with recognised ongoing shortages, such as aged care, or in regional areas covered by a Designated Area Migration Agreement (DAMA). The employer must first secure an approved labour agreement with the Department of Home Affairs.
What is a Designated Area Migration Agreement (DAMA)?
A DAMA is a region specific labour agreement negotiated between the Australian Government and a regional authority, such as the Northern Territory or Far North Queensland. DAMAs may offer concessions on occupation lists, salary, age, or English language requirements for approved sponsors in that region.
Can occupations not on the CSOL still be sponsored under this stream?
Yes. One of the main purposes of the Labour Agreement stream is to allow sponsorship for occupations that fall outside the Core Skills Occupation List, provided they're covered by the terms of an approved labour agreement.
Does the Labour Agreement stream lead to permanent residency?
Many labour agreements include a potential pathway to permanent residency, though this depends on the specific terms of the agreement and whether the applicant meets eligibility requirements at the time of applying. Conditions vary between agreements, so this is worth confirming early with a registered migration agent.
How is the Labour Agreement stream different from the Core Skills stream?
The Core Skills stream relies on a standard occupation list and fixed income threshold, while the Labour Agreement stream is built around individually negotiated agreements between an employer and the Department of Home Affairs. This can mean different (and sometimes concessional) salary, English, or experience requirements depending on the specific agreement.
