A regional aged care provider needs personal care workers. The occupation is not on the Core Skills Occupation List, and the award rate sits below the Core Skills Income Threshold of $79,423. A standard 482 nomination is refused before it starts. The provider has not done anything wrong. The standard rules simply were not built for that workforce. Labour agreements exist for exactly this gap.
This guide explains the three kinds of agreement employers use in 2026-27 and the concessions they can deliver. It also covers what still applies regardless, and what a business has to prove to get one.
Short answer: A labour agreement lets an employer sponsor workers on terms the standard 482, 494 and 186 rules would refuse, such as a salary below $79,423. The Skilling Australians Fund levy still applies, at $1,200 or $1,800 per year for a 482 nomination.
Three types of agreement
| Type | Who negotiates it | Best suited to |
|---|---|---|
| Company specific | One employer with the Department | A business with a proven shortage that no template covers |
| Industry | Industry body, then each employer signs | Aged care, dairy, fishing, meat, horticulture, on-hire, fine dining and similar sectors |
| Designated Area Migration Agreement | Regional body, then each employer signs | Employers in a designated region with local shortages |
Industry agreements are template deals. The terms, occupations and concessions are fixed for the sector, and an employer either fits them or does not. DAMAs work the same way for a region, with the designated area representative endorsing each employer first. Company specific agreements are bespoke and take the most work, because the employer has to prove the case from scratch.
Project agreements and the Global Talent Employer Scheme also exist. They serve large infrastructure projects and high skill technology roles, and they suit a small number of employers.
What an agreement can change
Depending on the agreement, an employer may nominate an occupation that is not on the standard list. The salary floor may sit below the $79,423 threshold, provided the market rate is still paid. English requirements may be lower than the standard stream. Age limits for the 186 stream may be relaxed above 45. Skills and experience requirements may be adjusted. Some agreements include a permanent residence pathway that the standard rules would not offer.
The Skilling Australians Fund levy applies to every nomination. Nomination charges still apply, at $330 for a 482 and $540 for a 186. Visa application charges still apply, at $4,015 for a 482 and $6,140 for a 494 or 186 main applicant. Labour market testing continues for most nominations. Health, character and genuine position requirements remain. Sponsor obligations, record keeping and reporting apply in full, with an annual report to the Department on top.
Because the agreement itself is the sponsorship, no separate standard business sponsorship application is needed. Every other cost line stays. Employers who assume a concession on salary means a concession on levy are caught out at lodgement.
The levy in numbers
The Skilling Australians Fund levy is the largest single employer charge. For a 482 nomination it is paid per year of visa requested, at $1,200 for smaller businesses and $1,800 for larger ones. For a 494 or 186 nomination it is a one off payment of $3,000 or $5,000. The levy cannot be recovered from the worker. Nor can the nomination charge.
The calculator covers a 482 labour agreement nomination. For a 186 nomination, substitute the $540 nomination charge, the one off levy and the $6,140 visa charge. Our employers page sets out both streams side by side.
What a company specific agreement has to prove
The Department does not grant bespoke concessions on a business case alone. It wants evidence on five fronts. First, a genuine and ongoing shortage that the local labour market cannot fill. Second, a real recruitment history, with advertising, applicant numbers and reasons candidates were unsuitable. Third, financial viability and lawful operation, including compliance with workplace law. Fourth, a plan to train and upskill Australian workers over the life of the agreement. Fifth, consultation with relevant stakeholders, usually the union covering the occupation and any industry body.
Stakeholder consultation is where most applications stall. The Department expects to see that the union was given the proposed terms and a chance to respond. Silence is not consent, so the consultation needs to start early and be documented.
How the process runs
- Check coverageConfirm whether an industry agreement or DAMA already covers the occupation and region. If so, the bespoke route is unnecessary.
- Build the evidenceRecruitment records, financials, training plan and the occupations sought, with the concessions justified one by one.
- ConsultSend the proposal to the union and industry body, record responses, and address objections.
- Request the agreementLodge the request. The Department may negotiate terms, ceilings on nominations, and the concessions it will accept.
- NominateOnce the agreement is signed, nominate workers under the labour agreement stream of the 482, 494 or 186.
- ReportMeet the annual reporting and training obligations for the term of the agreement.
Should a regional employer choose a DAMA or an industry agreement?
If both cover the occupation, compare the concessions and the endorsement steps. A DAMA typically offers broader occupation lists and regional salary concessions, but it needs endorsement from the designated area representative first. An industry agreement is usually quicker to sign because the template is settled. The choice turns on which concessions the business actually needs, not on which document looks more flexible.
Risks employers underestimate
An agreement is a contract with conditions. Nomination ceilings cap how many workers can be sponsored each year. Concessions granted for one occupation do not extend to another. Breaches of sponsor obligations can lead to sanctions and loss of the agreement, which strands every worker nominated under it. Therefore, the compliance system must be in place before the first nomination, not after the first audit letter.
If you are weighing a labour agreement against a standard nomination, contact us with the occupation, location and salary. We will tell you which route the evidence supports.
Figures verified against Home Affairs visa pricing and published levy and threshold settings as at 1 July 2026.
Frequently asked questions
Does the Skilling Australians Fund levy apply under a labour agreement?
Yes. Every nomination under a labour agreement attracts the levy. It is $1,200 or $1,800 per year of visa for a 482, and a one off $3,000 or $5,000 for a 494 or 186. Concessions on salary or English do not reduce it.
Do we still need to advertise the role?
Usually, yes. Labour market testing applies to most nominations under a labour agreement unless the agreement or the Regulations exempt the role. Keep the advertisements and applicant records in the same way as for a standard nomination.
Can an agreement cover an occupation that is not on the Core Skills list?
It can. Nominating an occupation outside the standard lists is one of the main reasons employers pursue an agreement. The occupation must be justified by shortage evidence, and the Department can decline to include it.
Is permanent residence available under a labour agreement?
Only if the agreement provides for it. Many industry agreements and DAMAs include a pathway through the labour agreement stream of the 186 or 494 visa, sometimes with age or English concessions. Check the signed agreement rather than assuming.
Can we nominate workers while the agreement is being negotiated?
No. Nominations under the labour agreement stream can only be lodged once the agreement is signed. Workers who cannot wait may fit a standard 482 nomination in the meantime, if the occupation and salary allow it.
General information as at 2 September 2026. Not legal advice. Agreement terms, levy settings and thresholds change, so obtain advice on your own workforce before acting.