The Northern Territory (NT) Designated Area Migration Agreement (DAMA) is an employer-sponsored visa program that enables businesses anywhere in the Northern Territory to sponsor skilled and semi-skilled overseas workers for positions that they are unable to fill with local workers.
A DAMA operates under an agreement-based framework, which provides flexibility for regions in Australia to respond to their unique economic and labour market conditions, as compared with the standard employer skilled migration programs which are prescriptive. The NT DAMA also provides concessions to certain requirements for both the sponsoring employer and the sponsored foreign worker, which is not a feature of the standard employer sponsored visa programs.
Under the NT DAMA, once endorsed by the Department of Industry, Tourism and Trade (Migration NT), Northern Territory employers can sponsor eligible foreign workers under the NT DAMA for a four-year Subclass 482 Skills In Demand (SID) visa under the Labour Agreement stream, which provides a pathway to permanent residency via a Subclass 186 Employer Nomination Scheme (ENS) visa after two years.
Alternatively, employers in the Northern Territory may sponsor eligible workers for a five-year Subclass 494 Skilled Employer Sponsored Regional (Provisional) visa under the Labour Agreement stream, with an independent pathway to permanent residency after three years via a Subclass 191 Permanent Residence (Skilled Regional) visa.
It is important to point out that an individual worker cannot apply for a visa independently under the NT DAMA. They must first find a job with an employer in the Northern Territory that is willing to sponsor them.
What Are The Key Features Of The New NT DAMA III?
DAMA III was executed between the NT and Australian governments on 19 March 2025.
The new agreement, which will provide ongoing access for employers in the NT until 30 June 2030, features an expanded range of 325 occupations across various industries and sectors where there are workforce shortages (there were 135 occupations available under the previous NT DAMA II). This will provide increased flexibility for NT businesses to fill important vacancies.
The NT DAMA III allows for up to 1,500 approved nominations per year for the Subclass 482 Skills in Demand (SID) visa and the Subclass 494 Skilled Employer Sponsored Regional (SESR) visa, an increase from the 625 annual nominations facilitated under the previous DAMA. There is also a pathway to permanent residency for overseas sponsored workers under the NT DAMA III.
The new agreement features streamlined application processes for NT employers.
The 5-year term of the NT DAMA III allows businesses to plan forward with arranging places not only in the immediate year, but for the duration of their agreement.
When Will The New NT DAMA Open For Applications?
The program currently remains suspended for new endorsement applications as the program is transitioned to the new NT DAMA III.
The online application portal is expected to open by 31 March 2025 for new endorsement applications under the NT DAMA III.
What Is A Labour Agreement?
Under Australia’s employer sponsored visa system, an employer can sponsor overseas workers under a Standard Business Sponsorship (SBS) or a Labour Agreement. A Designated Area Migration Agreement (DAMA) is one type of Labour Agreement. The NT DAMA is a Labour Agreement.
A DAMA is a formal agreement between the Australian Government and a regional, state or territory authority. It provides access to more overseas workers than the standard skilled migration programs as it operates under an agreement-based framework, providing flexibility for regions to respond to their unique economic and labour market conditions. They allow employers to sponsor foreign workers in occupations that are not included on the skilled occupation lists that apply to the standard visa programs, and they provide concessions to certain requirements, such as age and English language concessions.
Each DAMA covers a defined regional area of Australia. The NT DAMA covers the whole of the Northern Territory. This means that an employer in the Northern Territory can sponsor eligible applicants to fill a position regardless of where in the Northern Territory the position is located.
How Does The NT DAMA Work?
A DAMA operates under a two-tier framework. The first tier is an overarching five-year deed of agreement (head agreement) with the region’s representative. In the Northern Territory, this head agreement is the NT DAMA III, which has been executed between the Department of Home Affairs and the Northern Territory Government (through the Department of Industry, Tourism and Trade).
The second tier comprises of individual labour agreements between Home Affairs and employers under the settings of the head agreement (that is, under the NT DAMA III). Employers can only apply for a Labour Agreement to Home Affairs once they have received endorsement by the NT Department of Industry, Tourism and Trade.
To use the NT DAMA program, businesses must first be endorsed by the NT Department of Industry, Tourism and Trade and then enter into a five-year labour agreement with Home Affairs. The labour agreement will outline the number of workers that the NT business can nominate each year in specified occupations, as well as available concessions.
Which Visas May Be Sponsored Under The NT DAMA III?
Employers in the Northern Territory may sponsor foreign workers under the NT DAMA for the following visas:
Subclass 482 Skills In Demand (SID) Visa
The Subclass 482 SID visa is a temporary employer sponsored visa that allows the sponsored worker to live and work in Australia for up to four years. It also provides a pathway to permanent residency after the sponsored worker has worked for their sponsoring employer on a full-time basis for at least two out of the last three years (before being nominated for the Subclass 186 ENS permanent residence visa).
Subclass 494 Skilled Employer Sponsored Regional (SESR) (Provisional) Visa
The Subclass 494 SESR visa is a provisional visa which provides a pathway to permanent residence with the Subclass 191 Permanent Residence (Skilled Regional) visa after three years if your sponsored worker meets specified requirements at that time. The SESR visa requires the sponsored worker to live and work in a designated regional area (which includes the whole of the Northern Territory). The term of the subclass 494 SESR visa is five years.
Subclass 186 Employer Nomination Scheme (ENS) Visa
Under the NT DAMA III, overseas workers who were initially sponsored for a Subclass 482 SID or Temporary Skills Shortage (TSS) visa (which was the predecessor to the current SID visa) and who have worked in an eligible occupation in the NT for at least two out of the last three years full-time can be nominated by their employer for permanent residency through the Subclass 186 Employer Nomination Scheme (ENS) visa under the Temporary Residence Transition (TRT) stream.
In addition to the TRT permanent residency pathway noted above, the NT DAMA provides access to a subclass 186 visa under the Labour Agreement stream if the overseas worker has lived and worked in the NT for two years.
How Can A NT Business Sponsor Overseas Workers Under The NT DAMA III?
To sponsor a foreign worker for a Subclass 482, 494 or 186 visa under the NT DAMA III, the following process applies:
Step 1: Enter Into A Labour Agreement
The sponsoring employer must first enter into a labour agreement with the Department, but before doing so, it must apply for endorsement by the NT Department of Industry, Tourism and Trade.
Businesses with existing labour agreements under NT DAMA II can continue to lodge nomination applications with their approved ceilings under the new NT DAMA III.
Businesses with existing labour agreements under NT DAMA II who require additional ceiling places or would like to access new occupations/concessions available under NT DAMA III, will need to lodge a new endorsement application for a NT DAMA III labour agreement.
Step 2: Lodge A Nomination Application
Once the labour agreement has been executed, the sponsoring employer must apply to nominate the foreign worker for the position that it is seeking to fill.
Step 3: Lodge a Visa Application
The proposed sponsored foreign worker must separately apply for a visa under the Labour agreement stream.
To qualify for a visa under the NT DAMA, employees must be nominated for an occupation on the current NT DAMA list.
Please note that depending on the occupation being sponsored, specified age, skill and English language requirements may apply under the NT DAMA III.
Get More Information
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Contact us to book a no-obligation consultation to find out more about your eligibility for sponsorship under the NT DAMA III, or if you are an employer in the NT, to find out more about how you can sponsor workers under the NT DAMA III.
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In conclusion, we note that the above discussion provides an overview of the new NT DAMA III, for both employers and for potential visa applicants whom they are seeking to nominate.
Australia’s migration laws are complex, and each case is different. We recommend that you seek professional advice before you proceed with applying for a labour agreement under the NT DAMA III, or you are an overseas worker who is seeking employer sponsorship under the NT DAMA, as being fully informed about the process and requirements that apply will give you the best chance of achieving a successful outcome on your application, and thus lessen the chance that it will be refused. A migration professional can help you to do this.
For up-to-date advice on how to sponsor overseas workers under the NT DAMA III, book your confidential consultation with our NT specialist Anke Nagel or any of our experienced migration agents in Adelaide. PAX Migration Australia is a leading immigration advice service based in Adelaide.
Sources/Links
https://dtbar.nt.gov.au/workforce-population/northern-territory-designated-area-migration-agreement