Last Updated: 19 October 2026
Finding and retaining reliable workers remains a major challenge for many regional businesses across Australia, especially when local recruitment options are limited.
What many employers may not realise is that the Designated Area Migration Agreement (DAMA) could open up additional opportunities to sponsor international workers, even for smaller businesses.
In this guide, we explore how DAMA works, who qualifies and how it could help your business overcome ongoing staffing shortages.
What Is a Designated Area Migration Agreement (DAMA)?
A Designated Area Migration Agreement (DAMA) is a special arrangement between the Australian Government and participating regional authorities to help local businesses address workforce shortages.
Unlike standard employer sponsorship pathways, DAMA can provide businesses with additional flexibility, including:
- Expanded occupation lists: Access to occupations not available under standard skilled visa programs.
- English concessions: Lower English requirements for certain occupations.
- Age concessions: More flexibility for eligible older workers.
- Salary concessions: Reduced migration income thresholds for selected occupations, while maintaining applicable employment protections.
- Permanent residency pathways: Opportunities for eligible employees to transition towards permanent residency.
Eligible regions for DAMA arrangements
DAMA arrangements are available across several regions, including:
- The Northern Territory (Darwin, Alice Springs and Tennant Creek),
- Regional South Australia,
- Western Australia’s Pilbara, Goldfields and South West,
- Far North Queensland, Townsville,
- Victoria’s Goulburn Valley and Great South Coast
- The Orana region in NSW.
Each region has its own occupation lists, concessions and eligibility requirements.
What Types of Businesses Can Qualify for DAMA?
One of the biggest misconceptions is that DAMA is only available to large corporations or agricultural businesses.
In reality, small and medium-sized regional businesses can also qualify.
Depending on the region, eligible occupations may be available across industries such as:
- Hospitality: Cafés, restaurants, hotels and tourism operators.
- Automotive: Mechanics, technicians and automotive workshops.
- Agriculture: Farms, horticulture and food production.
- Construction: Builders, trades and related businesses.
- Other regional services: Selected healthcare, community and service occupations.
For example, a small regional café or automotive workshop facing ongoing recruitment challenges may be able to access DAMA sponsorship, provided the business, occupation and employee meet the relevant requirements.
At Hays Migration & Education, we have worked with small regional businesses across different industries to explore suitable employer sponsorship pathways.
Regardless of how small your business may seem, DAMA could still be an option worth exploring.
Can You Sponsor Existing International Workers Through DAMA?
Yes. DAMA may allow eligible regional employers to sponsor international employees already working for their businesses, including Working Holiday Makers.
For example, a regional restaurant employing an experienced international worker may be able to explore DAMA sponsorship rather than losing that employee when their current visa approaches expiry.
This can help businesses retain experienced staff, reduce recruitment costs and avoid repeatedly training new employees.
However, eligibility depends on the employee’s occupation, skills, experience and visa circumstances. Existing visa conditions, including Working Holiday Maker work limitations where applicable, must still be observed.
How Does the DAMA Application Process Work?
Although DAMA involves additional requirements compared with standard sponsorship, the process can be broken down into six main steps.
Step 1: Assess Your Business and Employee’s Eligibility
Check whether your business location, nominated occupation and prospective employee qualify under the relevant DAMA.
Step 2: Demonstrate Your Recruitment Needs
Provide evidence that your business has genuinely attempted to recruit suitable Australian workers, generally through Labour Market Testing.
Step 3: Apply for Regional Endorsement
Submit an application to the relevant Designated Area Representative (DAR) for endorsement.
Step 4: Obtain an Individual Labour Agreement
Following endorsement, apply to the Department of Home Affairs for approval of an individual DAMA labour agreement.
Step 5: Nominate Your Employee
Once the agreement is approved, nominate the eligible position and employee under the applicable sponsored visa pathway.
Step 6: Lodge the Visa Application
The employee submits their visa application with the required supporting documents for government assessment.
While the process involves several stages, working with an experienced Registered Migration Agent can help businesses understand the requirements and navigate the application process more efficiently.
Common Misconceptions About DAMA Sponsorship
Many regional employers hesitate to consider DAMA because of common misunderstandings.
1. DAMA Is Only for Large Businesses
Not true. Small businesses may also qualify, provided they meet the relevant eligibility, financial and employment requirements.
2. DAMA Is Too Complicated
While additional approvals are required, the process follows a clear structure. Professional guidance can help employers prepare the necessary documents and understand each stage.
3. DAMA Only Covers Highly Skilled Workers
Not necessarily. Depending on the region, DAMA can cover selected skilled and semi-skilled occupations that are unavailable through standard sponsorship pathways.
4. DAMA Guarantees Permanent Residency
Not automatically. Some DAMA arrangements offer permanent residency pathways, but employees must still meet the relevant visa and eligibility requirements.
How Much Does DAMA Sponsorship Cost?
The total cost depends on the DAMA region, visa subclass and number of employees being sponsored.
Potential expenses include:
- Regional endorsement fees, where applicable.
- Nomination application charges.
- Skilling Australians Fund (SAF) levy, where applicable.
- Employee visa application and associated fees.
- Professional migration assistance fees.
There is no Department of Home Affairs fee to request the individual labour agreement itself. Employers must also meet their legal obligations regarding sponsorship costs.
While the initial investment may seem significant, consider the costs of constantly recruiting, training and replacing employees.
For businesses facing persistent staffing shortages, retaining an experienced worker or accessing a broader talent pool could provide much greater long-term value.
Processing times also vary across regional endorsement, labour agreement and visa stages. Businesses should start early, particularly when an existing employee’s visa is approaching expiry.
Explore DAMA Sponsorship With Hays Migration & Education
If your regional business is struggling to fill vacancies or hoping to retain an experienced international worker, DAMA could provide an alternative sponsorship pathway worth exploring.
At Hays Migration & Education, our MARA Registered Migration Agents have over 15 years of experience assisting businesses across different industries, including hospitality, automotive and other skilled occupations.
From assessing eligibility to preparing DAMA endorsement, labour agreement and visa applications, our team can guide you through the process and help identify suitable sponsorship options for your business.
Contact us today to explore whether your business qualifies for DAMA sponsorship and take the first step towards building a more stable workforce.
