Marisol runs a meat processing business in regional Victoria. She holds a five year supply contract with a national retailer that fixes weekly volumes. Her boning room cannot reach them with local hires, and the occupation she needs pays below the Core Skills Income Threshold of $79,423. A standard 482 nomination fails on salary before anyone reads the rest. Her answer is a labour agreement. It is also a second contract, with its own term, ceilings and reporting duties. The two contracts must fit each other, or one of them will be breached. This note explains the three kinds of agreement, what they can change, what they cannot, and how we read them beside a client's commercial commitments.
In short: A labour agreement lets an employer sponsor on terms the standard rules refuse, such as an occupation off the list or a salary below $79,423. The Skilling Australians Fund levy still applies, at $1,200 or $1,800 per year for a 482 nomination and $3,000 or $5,000 for a 186.
Why does the standard nomination fail?
What stops the standard 482 for this role?
Three agreements, three routes in
| Type | Terms | Endorsement needed | Suits |
|---|---|---|---|
| Company specific | Negotiated case by case with the Department. | Consultation with the union and any industry body. | A proven shortage that no template covers. |
| Industry | Fixed template for the sector. | Industry body, and in some sectors a union memorandum. | Meat, dairy, aged care, fine dining, on-hire and similar. |
| Designated Area Migration Agreement | Fixed for the region. | The designated area representative. | Regional employers with local shortages. |
Marisol's occupation sits on the meat industry template, so the bespoke route is unnecessary. Where a region and an industry both cover a role, we compare the concessions line by line. Our note on DAMAs covers the regional route in detail.
What the agreement fixes
An agreement is a contract with the Commonwealth. It fixes a term. It sets a ceiling on nominations for each year of that term. It lists the occupations and the concessions for each, and no others. It carries obligations beyond the standard sponsor obligations, including an annual report to the Department. It can be terminated for breach, which strands every worker nominated under it.
Read that beside the supply contract. If the agreement term is shorter than the supply term, there is a gap the retailer will not accept. If the nomination ceiling is lower than the roster the volumes need, the shortfall is a breach of one contract or the other. If the supply contract has a change of control clause and the business is sold, the agreement does not follow the buyer. Our commercial practice reads the two documents together before the request is lodged. The sale scenario is covered in our note on selling with sponsored staff.
Evidence the Department expects
Consultation is where requests stall. The Department expects to see that the union received the proposed terms and had a chance to respond. Silence is not consent. We start the consultation before the evidence bundle is finished, so the responses arrive with it.
Does the training levy still apply under an agreement?
Yes, in full. For a 482 nomination it is $1,200 per year of visa for a business with turnover under $10 million, and $1,800 above that. For a 186 or 494 nomination it is a one off $3,000 or $5,000. Nomination charges of $330 for a 482 and $540 for a 186 still apply. Visa charges of $4,015 for a 482 and $6,140 for a 186 still apply. What falls away is the $420 standard business sponsorship, because the agreement is the sponsorship.
Testing and obligations continue
Labour market testing applies to most nominations under an agreement. That means advertisements for at least 28 days within the 4 months before the nomination, in the format the Department specifies. Our testing note sets out what survives scrutiny. Health, character and genuine position requirements remain. Record keeping and reporting obligations apply, with the annual report on top. An employer who assumed a concession on salary meant a concession on process is usually the employer who receives the first audit letter.
Where the risk sits
Ceilings cap the workers each year. Concessions granted for one occupation do not extend to another. A breach can end the agreement and with it every nomination made under it. The compliance system therefore comes before the first nomination, not after the first letter. For Marisol, that meant a roster plan matched to the ceiling and a training plan the retailer could see. It also meant a sale clause in the supply contract that anticipated the agreement. If you are weighing an agreement against a standard nomination, the migration practice will tell you which route the evidence supports.
Figures verified against Home Affairs visa pricing as at 1 July 2026.
Frequently asked questions
Can we nominate a worker before the agreement is signed?
No. The agreement is the sponsorship, so no nomination under the labour agreement stream exists until it is executed. A worker needed sooner has to fit a standard stream in the meantime.
What happens to the agreement if we sell the business?
It does not transfer with the business automatically. The buyer needs its own agreement or its own standard sponsorship, and the timing of the sale has to be planned around the nominated workers.
Do we still need standard business sponsorship?
No. The agreement performs that role, so the $420 sponsorship application is not made. Every other charge, including the levy, remains.
Does labour market testing apply under an agreement?
Generally yes. Most nominations still need advertisements for at least 28 days within the 4 months before lodgement. Some agreements vary the requirement, so check the executed terms rather than the template.
Is there a limit on how many workers we can nominate?
Yes. The agreement sets a ceiling for each year of its term, by occupation. A nomination above the ceiling fails, so the roster plan has to fit the number the Department agreed.
General information as at 2 September 2026. Not legal advice. Agreement terms and charges change, and your position depends on your facts. Speak to a lawyer before relying on any of it.