Labour agreements are formal arrangements negotiated between an employer and the Australian Government which lets an employer recruit an agreed number of skilled workers from outside Australia.
The agreement must:
- identify the relevant skills shortage in the business and why these vacancies cannot be filled by Australian workers
- specify the number of skilled workers needed from outside Australia
- the age, skill and English language requirements that relate to the nominated occupations. Semi-skilled occupations can be considered for nominated positions if specified in the agreement.
You can use a template labour agreement if there is one for your industry or your worker’s occupation. If the template does not suit your needs it may be possible to negotiate an individual agreement.
A labour agreement comes into effect when it has been signed by all parties involved in the negotiations and is typically valid for five years.
Labour agreements enable approved businesses to sponsor overseas workers when there is a demonstrated need that cannot be met in the Australian labour market and standard temporary or permanent migration arrangements are not appropriate.
Labour agreements are developed between the Australian Government, represented by the Department, and employers. They are generally in effect for five years and might have additional terms and conditions, because labour agreements provide a variation to standard migration requirements.
Employers are required to have made recent, genuine efforts to recruit, employ or engage Australian citizens or Australian permanent residents. They are also required to consult or make genuine efforts to consult industry stakeholders, including relevant trade unions and peak industry bodies when developing their agreement. Labour agreements are the only migration pathway for semi-skilled labour.
There are four types of labour agreements:
- company-specific
- industry
- designated area migration agreements (DAMA)
- project agreements
Labour agreements are used for the Skills in Demand (subclass 482), Skilled Employer Sponsored Regional (subclass 494) and Employer Nomination Scheme (subclass 186) visas. Since December 2024, the age, English, skills and work experience requirements for labour agreement applicants are set in each agreement rather than fixed in the Migration Regulations, which gives employers more room to negotiate settings that suit their workforce.
Related:
How to request a labour agreement
Labour agreement requests are lodged online through ImmiAccount. There is no fee to request an agreement, but the usual nomination fees and Skilling Australians Fund (SAF) levy apply to each nomination made under it. To be considered, the business generally needs to show:
- it has been actively and lawfully trading in Australia for at least 12 months and is financially viable, usually supported by a statement from an accountant
- a genuine need for the occupations requested, including ANZSCO codes and a description of the tasks for each role
- labour market testing, showing recent attempts to recruit Australian citizens and permanent residents
- evidence of consultation with relevant stakeholders, such as the industry body and relevant unions. Stakeholders are usually given 10 working days to respond, plus a further 5 working days after a follow-up. For most industry templates this step is not needed, but the aged care agreement requires a union MoU
- a declaration about any retrenchments or redundancies in the previous 12 months
Once signed, an agreement usually runs for 5 years. Each agreement sets a ceiling on the number of nominations the business can make each year, and the employer must keep records for 7 years and report to the Department when asked.
Industry Specific Labour Agreements
Industry labour agreements are standard templates for industries with ongoing shortages. The terms are set in advance, so employers can usually get an agreement in place faster than a company-specific agreement. The current industry templates are: advertising, aged care, dairy, fishing, horticulture, meat, minister of religion, on-hire, pork and restaurant (premium dining).
All templates share these standard terms: the agreement runs for 5 years; 482 nominations can be for up to 4 years; employers must take reasonable steps to recruit Australians first and aim to keep overseas workers to no more than one third of the workforce; and workers must be given information about their workplace rights within 7 days of starting.
Industry labour agreements at a glance
| Agreement | Visas | Path to PR | Regional concessions |
|---|---|---|---|
| Restaurant (premium dining) | 482, 494, 186 | 186 after 2 or 3 years | No salary concession |
| Fishing | 482, 494, 186 | 186 after 3 years | 90% CSIT in Category 3, age under 55 |
| Meat | 482, 494, 186 | 186 after 3 years | 90% CSIT in Category 3, age under 55 |
| On-hire | 482 only | No | None |
| Dairy | 482, 494, 186 | 186 after 3 years | 90% CSIT in Category 3, age under 55 |
| Pork | 482, 494, 186 | 186 after 3 years | 90% CSIT in Category 3, age under 55 |
| Minister of religion | 482, 186 | 186 after 2 years (where included) | Not regional based |
Regional categories used in labour agreements
Several industry agreements give extra concessions depending on where the business is located:
- Category 1: Sydney, Melbourne and Brisbane. Standard settings generally apply
- Category 2: major regional centres, such as Perth, Adelaide, the Gold Coast, the Sunshine Coast, Newcastle, Wollongong, Geelong, Hobart and Canberra. Access to the 494 visa, age concessions and some English concessions
- Category 3: all other regional areas. The same as Category 2, plus a salary concession of 90% of the CSIT and lighter labour market testing
Check your postcode on our regional postcodes page.
More info on Industry specific Labour Agreements
VisaEnvoy-dairy-industry-labour-agreement
VisaEnvoy-on-hire-labour-agreement-information-booklet-september
Labour agreement FAQs
What is the difference between a labour agreement and standard sponsorship?
Standard sponsorship lets an approved standard business sponsor nominate workers in occupations on the relevant occupation list, under the normal salary, English, age and experience settings. A labour agreement is a formal agreement with the Australian Government that can allow occupations not on the standard lists, and concessions on English, salary, age or experience, where the business shows a genuine need that standard sponsorship does not meet.
Which type of labour agreement should we choose?
If there is an industry template for your industry, it is usually the quickest option because the terms are already set. If your business is in a region covered by a Designated Area Migration Agreement (DAMA), that may offer wider occupations and concessions. A company-specific agreement is for businesses with a genuine, ongoing need that neither an industry template nor a DAMA covers. Project agreements are for large infrastructure and resource projects.
How long does it take to get a labour agreement?
Industry template agreements usually take a few months from lodging the request, depending on the evidence provided and the Department’s workload. Company-specific agreements usually take longer because the terms have to be negotiated, and stakeholder consultation can add several weeks.
Can a labour agreement lead to permanent residency?
Most industry agreements include a pathway to the 186 visa after a set period working for the sponsor, usually 2 to 3 years. Some regional agreements also give access to the 494 visa. The on-hire agreement has no pathway to permanent residency.
Do workers under a labour agreement need a skills assessment?
It depends on the agreement and the occupation. Some agreements set their own skill requirements, such as a MINTRAC assessment for meat workers or a VETASSESS assessment for some horticulture roles. Others follow the standard ANZSCO requirements.
Are English concessions available?
Many industry agreements accept lower English scores than standard sponsorship, often IELTS 5.0 overall or lower for specific roles, and some regional agreements have further concessions. A few agreements, such as on-hire and advertising, have no English concessions.
What salary must be paid under a labour agreement?
Most agreements require at least the Core Skills Income Threshold (CSIT), currently $79,423, and no less than an Australian doing the same work. Some agreements have concessions, such as 90% of the CSIT in Category 3 regional areas, while others set a higher floor, such as the on-hire agreement (20% above the CSIT) and the advertising agreement ($85,000).
Can an employer recover sponsorship costs from the worker?
No. It is unlawful for a sponsor to recover sponsorship, nomination or recruitment costs from a sponsored worker, and labour agreements also prohibit charging workers recruitment, English testing or training costs.
What happens if we breach a labour agreement?
The Department can cancel the agreement, bar the business from sponsoring, issue infringement notices or seek civil penalties. Breaches can also affect the visas of workers sponsored under the agreement.
Can VisaEnvoy help with a labour agreement request?
Yes. Our registered migration agents can assess which agreement suits your business, prepare the request and supporting evidence, manage stakeholder consultation and lodge the nominations and visa applications. Complete our corporate assessment form or contact us to get started.
Employer sponsored visa guides
- Skills in Demand 482 visa
- 482 Core Skills stream
- 482 Specialist Skills stream
- 482 visa fees
- 482 visa path to PR
- Employer Nomination Scheme (186 visa)
- Regional employer sponsored (494 visa)
- Becoming a standard business sponsor
- Skilling Australians Fund (SAF) levy
- Labour agreements
- Designated Area Migration Agreements (DAMA)
- Employer sponsorship assessment
List of current labour agreements
The Department of Home Affairs publishes a list of current labour agreements. Contact us to check whether an agreement already covers your industry or region.
Labour agreement changes
Background (2018): When the TSS visa started in March 2018, the Department progressed changes to existing labour agreement templates to cater for the Temporary Skill Shortage (TSS) program – including:
- revised agreements have now been sent out to fishing industry labour agreement holders for signature and will be sent out to existing company specific labour agreement holders shortly
- remaining labour agreement sponsors will be contacted between late January and mid-February to sign new agreements where required in order to facilitate further nomination applications being lodged where approved ceilings remain available.
Note: further discussions are planned with representatives from the dairy, snow, hospitality and meat industries regarding their labour agreement templates. Interim amendments will, however, be made to existing agreements in the meantime to avoid any negative impacts on businesses as a result of the March 2018 changes – given the short time frames available.
Recent changes to labour agreements
- 1 July 2026: the Core Skills Income Threshold (CSIT) increased to $79,423. The 90% regional concession in Category 3 areas is calculated from this figure.
- 14 December 2024: changes to the Migration Regulations mean the age, English, skills and experience requirements for 482, 494 and 186 labour agreement applicants are now set by each agreement. This includes replacing the under-45 age limit for the 494. Agreements made before the change continue under their existing terms.
- 7 December 2024: the Skills in Demand (482) visa replaced the TSS. Labour agreements now use 482 nominations of up to 4 years, and the CSIT in place of the TSMIT.
New regional concessions for the dairy, fishing, meat and pork industry labour agreements
From 1 November 2021, new regional concessions became available for the dairy, fishing, meat and pork industry labour agreements. These support businesses in regional Australia to address critical skills shortages.
The following new concessions are available for businesses based in Category 2 and Category 3 regional locations:
- Additional work experience concessions. These reduce the level of work experience needed to meet the relevant visa criterion.
- Additional English language concessions. These reduce test score requirements for visa applicants sponsored by businesses.
- Additional flexibility around Labour Market Testing for Category 2 and 3 located businesses. Previously, advertising had to be undertaken within four months of nomination to fill a position with a skilled worker. This was increased to 12 months. Category 3 businesses also have reduced evidentiary requirements.
- An additional salary concession. This consists of a 10% reduction to the Temporary Skilled Migration Income Threshold (TSMIT), now the Core Skills Income Threshold (CSIT), for Category 3 businesses.
- A new age concession of 55 years for Category 2 and 3 businesses. This means businesses can now sponsor older applicants for certain visa subclasses. They may have diverse work experience and/or be willing to migrate to regional areas.
Businesses located in Category 2 and 3 regional locations may also access the above regional concessions under a company-specific labour agreement. You must accompany any concessions requests with strong reasons as to why standard visa criteria should not apply.
In addition to the above:
- A pathway to permanent residency is now available under the fishing industry labour agreement (FILA). This is for all FILA occupations, for the following visas:
- The occupation ‘Seafood Process Worker’ (ANZSCO 831313) is now available under the FILA for businesses in Category 2 & 3 regional locations. This has qualifications and experience requirements equivalent to those under ANZSCO. There is a pathway to permanent residency.
- The occupation ‘Dairy Cattle Farm Operator’ (070499) is now available under the dairy industry labour agreement. This has qualifications and work experience requirements equivalent to ANZSCO Skill Level 4. There is a pathway to permanent residency.
Labour Agreement requirements Sc 186, Sc 482 and Sc 494 visas
The Migration Amendment (Labour Agreement Requirements (Subclass 186, 482 and 494 Visas)) Regulations 2024 amends the Migration Regulations 1994 to make changes to various criteria for the 482, 494 and 186 visas in the Labour Agreement stream, namely English language proficiency, age, qualifications and work experience, skills assessments, pathways to permanent residence, as well as salary, sponsorship obligations and occupations.
Below is a summary of the amendments made by the instrument:
Definition of Labour Agreement
The definition of work agreement and references to this have been revised with a new definition for “Labour Agreement”. A new regulation 2.75C has also been added to provide clear statutory authority for the Minister to enter into a labour agreement and facilitate settings that already exist in the current Labour Agreement program, including:
- who the Minister may enter into an agreement with,
- the matters which may be specified in a labour agreement, and
- a labour agreement may be varied by the parties after the agreement has come into effect.
Amendments to the Skills in Demand (Sc 482) visa – Schedule 1 criteria (Mandatory Skills Assessments)
The instrument restricts the Schedule 1 criteria regarding mandatory skills assessments to primary applicants for a SID visa in the Specialist Skills stream or the Core Skills stream. This is because an applicant in the Labour Agreement stream will be assessed under the skills assessment criteria set out in Schedule 2 cl.482.242A.
Amendments to the Skills in Demand (Sc 482) visa – Schedule 2 criteria
- References to the “Commonwealth” in relation to work agreements is substituted with the “Minister”
- New provision to substitute cl.482.242(b) which allows the primary applicant for a SID or TSS visa in the Labour Agreement stream to satisfy the relevant work experience requirements if they have worked in the nominated occupation or a related field for the period specified by the Minister in the Labour Agreement, for the nominated occupation and for the visa
- The applicant must satisfy any requirements around skills, qualifications and employment background requirements as specified by the Minister in the Labour Agreement. If the Minister specifies that the applicant’s skills must have been assessed as suitable for the nominated occupation, then the applicant’s skills have been assessed by the relevant skills assessing authority, or otherwise the person or body specified by the Minister in the Labour Agreement.
- The applicant must satisfy the English language requirements as specified by the Minister in the Labour Agreement
Amendments to the Employer Nomination Scheme (Sc 186) visa
- The instrument repeals cl,186.212B which previously required an applicant who is the holder of, or the last substantive visa was, a subclass 491 or 494 visa, to have held that visa for at least 3 years at the time of application for the 186 visa. The repeal of this provision from the common criteria effectively allows the Minister to specify alternative requirements and concession regarding the period of stay requirements in relation to Labour Agreements. However, this criterion continues to apply for applicants for the 186 Direct Entry stream.
- The age requirement in the Labour Agreement stream which previously required an applicant to be under 45 at the time of application was replaced with new provisions that enable an applicant to meet the age requirement where they have not reached the age specified by the Minister in a Labour Agreement that is in effect with the employer who is a party to a Labour Agreement. The purpose of this is to strengthen the legislative basis for the Minister to specify alternative requirements to this age requirement in a labour agreement for applicants to the Labour Agreement stream for a Subclass 186 (Employer Nomination Scheme) visa.
- The applicant must satisfy any requirements around qualifications, experience, language test and English language proficiency and skills requirements as specified by the Minister in the Labour Agreement. If the Minister specifies that the applicant’s skills must have been assessed as suitable for the nominated occupation, then the applicant’s skills have been assessed by the relevant skills assessing authority, or otherwise the person or body specified by the Minister in the Labour Agreement.
Amendments to the Skilled Employer Sponsored Regional (Provisional) (Sc 494) visa
- The age requirement in the Labour Agreement stream which previously required an applicant to be under 45 at the time of application was replaced with new provisions that enable an applicant to meet the age requirement where they have not reached the age specified by the Minister in a Labour Agreement that is in effect with the employer who is a party to a Labour Agreement.
- The applicant must satisfy the English language requirements as specified by the Minister in the Labour Agreement
- The applicant must satisfy any skills, qualifications and employment background requirements as specified by the Minister in the Labour Agreement
- The applicant must have worked in the nominated occupation or a related field for the period specified by the Minister in the Labour Agreement
- Advertising Industry Labour Agreement
- Aged care industry Labour Agreement
- Dairy industry Labour Agreement
- Fishing industry Labour Agreement
- Meat industry Labour Agreement
- Minister of Religion Labour Agreement
- On-hire Labour Agreement
- Pork industry Labour Agreement
- Restaurant (premium dining) Labour Agreement





