The Skills in Demand visa (subclass 482) has three streams. Most employers work through the Core Skills or Specialist Skills streams. But when a role doesn’t fit the standard occupation lists or salary rules, the Labour Agreement stream is the path forward. It’s designed for situations where standard sponsorship simply won’t work, and it gives both employers and workers access to terms that can be tailored to real workforce needs.

What the Labour Agreement Stream Is

A labour agreement is a formal contract between an Australian employer (or industry/regional body) and the Department of Home Affairs. It allows approved businesses to sponsor overseas workers where the standard skilled migration rules do not fit. Under the 482 Labour Agreement stream, workers can live and work in Australia temporarily for up to four years, with potential pathways to permanent residency through the Employer Nomination Scheme (subclass 186) or Skilled Employer Sponsored Regional (subclass 494) visas, where the agreement provides for it.

There are five types of labour agreements that can underpin this stream:

• Industry agreements (dairy, meat, fishing, horticulture, aged care, and others)
• Designated Area Migration Agreements (DAMAs) for regional employers
• Company-specific agreements negotiated case by case
• Project agreements for major resource or infrastructure projects
• Global Talent Employer Sponsored (GTES) agreements for highly specialised niche roles

How It Works for Employers

Before nominating a worker, the employer must hold an approved labour agreement. The agreement sets out which occupations are covered, any concessions that apply, and the salary and employment conditions that must be met. Employers must also:

• Be lawfully and actively operating in Australia
• Conduct Labour Market Testing (LMT) to demonstrate no suitable local worker was available
• Pay the Skilling Australians Fund (SAF) levy: $1,200 per year for businesses with turnover under $10 million, or $1,800 per year for larger businesses
• Pay the nominated worker at least the Annual Market Salary Rate and, unless a concession applies, the Core Skills Income Threshold of $76,515 per annum from 1 July 2025

Not recover SAF levy costs or migration agent fees from the worker

Cost Item	Small Business (<$10M)	Large Business (>$10M)
SBS application	$420	$420
Nomination fee	$330	$330
SAF levy (4-year visa)	$4,800	$7,200
Worker visa application	$3,210 (primary applicant)	$3,210 (primary applicant)

How It Works for Workers

Workers cannot initiate a labour agreement on their own. The employer must hold an approved agreement first, and then nominate the worker under it. Once nominated, workers generally need to meet these requirements:

• At least 12 months of relevant full-time work experience in the last five years (unless the specific agreement states otherwise)
• English proficiency at the level set in the agreement (concessions may lower standard IELTS requirements for eligible occupations)
• Any skills assessment required by the nominated occupation
• Health and character clearances

Concessions available through labour agreements can also cover age, salary, and work experience thresholds. For example, DAMAs can raise the age limit for permanent residency pathways from the standard 45 to up to 55 years for many occupations. Family members can generally be included as secondary applicants and receive the same visa duration and full work and study rights.

Frequently Asked Questions

Can workers apply for this stream without an employer?

No. The Labour Agreement stream is employer-led. The employer must hold an approved labour agreement and lodge the nomination before the worker can apply for the visa.

Does the Labour Agreement stream lead to permanent residency?

It can. Many labour agreements include a pathway to permanent residency through the subclass 186 Employer Nomination Scheme after a qualifying period of employment. Regional agreements may also lead to subclass 494, which transitions to permanent residency via subclass 191.

How long does a visa granted under this stream last?

Up to four years, with the exact duration set by the terms of the labour agreement. Hong Kong passport holders may be eligible for up to five years.

Are English language requirements lower under labour agreements?

They can be. Labour agreements, particularly DAMAs and industry agreements, may include English concessions for eligible occupations. Standard requirements still apply for occupations where professional registration demands a higher English level.

Can employers recover the SAF levy from the sponsored worker?

No. The SAF levy must be paid by the employer and cannot be recovered from the worker. Attempting to do so is a breach of sponsorship obligations and can result in significant penalties.

Looking beyond the 482 Labour Agreement stream? Read our complete guide to labour agreements in Australia for a clearer view of the different agreement types, concessions, and long-term pathways for employers and workers.

Work With a Team That Knows the Pathway

Labour agreement sponsorship involves multiple steps: getting the agreement right, meeting nomination requirements, and managing ongoing compliance obligations. Getting any one of those wrong can delay your case or put your sponsorship approval at risk.

At Pace Migration, our MARA-registered agents have over 20 years of experience handling employer-sponsored visa applications, including skilled visas, DAMAs, and labour agreement pathways for both businesses and workers. We assess your situation honestly, map out a clear plan, and take care of the application from start to finish.

Book a Consultation with Pace Migration

Tags: Labour Agreement, Labour Agreement Stream

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