Understanding the Dairy Industry Labour Agreement (DILA)

The Dairy Industry Labour Agreement (DILA) is a sector-specific migration program that allows Australian dairy businesses to sponsor skilled overseas workers to address workforce shortages on dairy farms, particularly in regional and rural areas.

The DILA was introduced to provide a structured pathway for employers in the dairy sector to access overseas labour while maintaining strong worker protections under Australian migration and workplace law. The agreement recognises that many dairy farms struggle to attract and retain experienced workers domestically due to the specialised nature of dairy operations and the regional locations where farms are typically based.

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What is the Dairy Industry Labour Agreement & why did Australia introduce this?

The Dairy Industry Labour Agreement is a formal arrangement between the Australian Government and eligible dairy employers under the Migration Act 1958 (Cth) and the Migration Regulations 1994 (Cth).

It was introduced to:

• Address ongoing labour shortages in the dairy sector
• Support the sustainability of regional agricultural businesses
• Provide a regulated pathway for overseas dairy workers
• Maintain compliance with Australian employment and migration standards

The agreement allows employers to sponsor overseas workers for specific dairy farming roles, sometimes with limited concessions relating to English language, age, salary thresholds, or qualifications.

Eligible Occupations Under the Dairy Industry Labour Agreement

DILA allows sponsorship for specific roles critical to dairy farm operations. Skilled overseas workers must meet both the occupation requirements and any additional criteria specified under the DILA.

Senior Dairy Cattle Farm Worker

This role typically involves:

• Supervising dairy farm workers
• Managing herd health and feeding programs
• Overseeing milking operations
• Operating farm machinery and equipment

Dairy Cattle Farm Operator

A Dairy Cattle Farm Operator may be responsible for:

• Managing daily farm operations
• Monitoring herd productivity
• Implementing breeding programs
• Supervising farm staff and operations

ANZSCO Classifications and Skill Level Requirements

Relevant occupations under DILA generally correspond to classifications within the Australian and New Zealand Standard Classification of Occupations (ANZSCO) framework.

Employers must demonstrate that the nominated role aligns with the skill level and duties defined for the relevant classification.

Skill and Experience Concessions

Under the Dairy Industry Labour Agreement, concessions may be available for:

• Formal qualifications
• Years of experience
• Bilans de compétences

These concessions recognise that many experienced dairy workers gain practical expertise through hands-on work rather than formal education.

Visa Pathways Available Under DILA

Subclass 482 – Labour Agreement Stream

The Subclass 482 Skills in Demand visa (temporary skill shortage visa) (Labour Agreement stream) allows dairy employers to sponsor overseas workers on a temporary basis.

This is a temporary visa that enables workers to live and work in Australia for an approved employer in a nominated dairy occupation. There is no age limit for the Temporary Skill Shortage visa (subclass 482).

The Dairy Industry Labour Agreement allows employers to sponsor skilled overseas workers for up to four years under the Temporary Skill Shortage visa (subclass 482).

Subclass 494 – Labour Agreement Stream (Regional)

The Subclass 494 Skilled Employer Sponsored Regional visa may be available where the dairy business operates in a designated regional area.

This visa allows workers to live and work in regional Australia with a pathway to permanent residency after meeting eligibility requirements.

Subclass 186 – Labour Agreement Stream (Permanent Residence)

The Subclass 186 Employer Nomination Scheme (employer nomination scheme visa) – Labour Agreement stream may provide a permanent residency pathway for eligible dairy workers.

Applicants for the Employer Nomination Scheme visa (subclass 186) must be no more than 45 years of age at the time of application.

Access to this pathway depends on the specific terms of the agreement and the worker meeting all legislative requirements.

Transition Pathways to Permanent Residency

Workers may become eligible for permanent residency after:

• Meeting minimum employment periods
• Maintaining lawful visa status
• Continuing to meet skills and age requirements (subject to concessions)

Permanent residency is not automatic and requires employer nomination and visa approval.

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Concessions Available Under the Dairy Industry Labour Agreement

One of the key features of DILA is the potential availability of negotiated concessions to the standard visa criteria requirements. The Dairy Industry Labour Agreement includes concessions for English language, salary thresholds, and age limits, especially for employers operating in regional areas.

Concessions relatives à la langue anglaise

Lower English language requirements may apply where justified by the nature of the role and supported by the agreement.

Concessions d'âge

In certain circumstances, concessions may be available to allow older workers to access permanent residency pathways.

Salary (CSIT) Concessions

Salary concessions, including those related to the core skilled income threshold, may apply where permitted under the agreement, particularly for regional agricultural roles.

The earnings of the skilled overseas worker in Category 3 regional locations must be equal to, or greater than, 90% of the Temporary Skilled Migration Income Threshold (TSMIT) for subclass 494 visas, or equal to, or greater than, 90% of the Core Skilled Income Threshold (CSIT) for subclass 482 and 186 visas.

From 1 July 2025, the Temporary Skilled Migration Income Threshold (TSMIT) was raised to $76,515.

However, workers must still be paid at least the Annual Market Salary Rate and comply with Australian workplace laws.

Skill & Qualification Concessions

Where formal qualifications are uncommon within the dairy industry, practical work experience may be accepted instead.

Conditions d'éligibilité pour les employeurs

Employers seeking access to DILA must generally demonstrate:

• Lawful and financially viable business operations
• Genuine labour shortages within the dairy sector
• Evidence of labour market testing requirements
• Compliance with Australian workplace laws
• A commitment to training Australian workers
• Satisfy visa criteria for each nominated worker, including occupational skills, work experience, salary thresholds, and English language proficiency.

Employers must also become approved standard business sponsors before nominating workers.

Eligibility Requirements for Workers

Overseas dairy workers must typically meet the following visa criteria:

• Relevant work experience in dairy farming that meets above occupational requirements
• Skills consistent with the nominated occupation
• English language requirements, including achieving the minimum score required for visa eligibility purposes for the Temporary Skill Shortage visa (subclass 482), Employer Nomination Scheme visa (subclass 186), and Skilled Employer Sponsored Regional (Provisional) visa (subclass 494)
• Health and character requirements for Australian visas

For visa eligibility purposes, workers must demonstrate that they meet specific requirements, including relevant work experience, qualifications, and English language proficiency.

Additional requirements may apply depending on the visa subclass.

Salary, Employment Conditions & Workplace Compliance

Core Skills Income Threshold (CSIT) & Market Salary Rate

Employers must ensure that sponsored workers are paid:

• At least the Annual Market Salary Rate (AMSR) for the role
• At least the applicable migration income threshold unless a concession applies

Salary must reflect what an equivalent Australian worker would receive.

Compliance with National Employment Standards

Sponsored workers are entitled to all National Employment Standards (NES) including:

• Annual leave
• Personal leave
• Maximum working hours
• Public holiday entitlements

Superannuation & Workplace Safety Obligations

Les employeurs doivent :

• Pay compulsory superannuation contributions
• Comply with workplace health and safety laws
• Provide safe working conditions

Fair Work Act Compliance

All workers sponsored under DILA are protected by the Fair Work Act 2009 (Cth), which regulates minimum employment conditions and workplace protections.

Employer Sponsorship Obligations

Sponsors must comply with a range of migration obligations when employing skilled overseas workers sponsored, including:

• Ensuring workers perform the approved occupation
• Paying the correct salary and employment conditions
• Ensuring overseas workers receive the same pay and conditions as Australian workers in similar roles
• Keeping accurate employment records
• Not recovering sponsorship costs from workers
• Notifying the Department of Home Affairs of relevant changes

Failure to comply may result in penalties or sponsorship cancellation.

Procédure de candidature étape par étape

Requesting the Labour Agreement

The employer submits a detailed request to the Department of Home Affairs outlining workforce shortages and business needs.

Negotiation & Approval

The Department reviews the request and negotiates the terms of the agreement, including occupations and concessions.

Nomination Application

Once the agreement is approved, the employer nominates an overseas worker for an approved occupation.

Visa Application

The worker lodges their visa application under the Labour Agreement stream of the relevant visa subclass.

Risks, Compliance Audits & Best Practices

Common Application Mistakes

Some common issues include:

• Inadequate labour market testing
• Incorrect occupation selection
• Insufficient documentation of labour shortages
• Failure to demonstrate business viability

Audit Risks and Penalties

Employers may be subject to compliance audits by the Department of Home Affairs. Breaches can lead to:

• Sanctions civiles
• Annulation du parrainage
• Bannières publicitaires

How to Maintain Ongoing Compliance

To ensure ongoing compliance, routine practices should include:

• Maintaining clear employment records
• Ensuring correct wages are paid
• Regularly reviewing sponsorship obligations
• Seeking professional migration advice where necessary

Our team at Australian Migration Lawyers are here to provide you with ongoing support to to maintain full compliance with migration and employment obligations under the DILA. We assist with internal compliance reviews, sponsor monitoring responses, visa renewals, and permanent residency pathways for sponsored workers.

Inquire today to learn more.

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FAQ

What is the Dairy Industry Labour Agreement in Australia?

The Dairy Industry Labour Agreement (DILA) is a government-approved migration arrangement that allows dairy employers to sponsor overseas workers for specific dairy farming roles where local labour shortages exist.

Who can apply for a Dairy Industry Labour Agreement?

Eligible Australian dairy businesses experiencing genuine labour shortages may apply, provided they meet sponsorship, compliance, and workforce planning requirements.

What visa subclasses are available under the Dairy Industry Labour Agreement?

Common visa pathways include:

• Subclass 482 (Labour Agreement stream)
• Subclass 494 (Labour Agreement stream for regional employers)
• Subclass 186 (Labour Agreement stream for permanent residency)

What are the salary and workplace compliance requirements for sponsored dairy workers?

Employers must pay at least the Annual Market Salary Rate and comply with the Fair Work Act 2009, National Employment Standards, and relevant workplace laws.

Does the Dairy Industry Labour Agreement provide a pathway to permanent residency?

Yes. Eligible workers may transition to permanent residency through the Subclass 186 Labour Agreement stream or through regional migration pathways, subject to meeting eligibility criteria.