Dairy Industry Labour Agreement (DILA) | Australian Migration Lawyers

At a glance: key facts

5 yearsAgreement term

1/3Maximum overseas share of workforce

$79,423CSIT and TSMIT, Category 1 and 2

$71,481Category 3 minimum (90%)

Feature	Detail
Agreement type	Industry labour agreement — published Home Affairs template, fixed conditions
Administering department	Department of Home Affairs
Occupations covered	Senior Dairy Cattle Farm Worker (Code 070499); Dairy Cattle Farm Operator (Code 070499)
ANZSCO code	070499 (administrative code only — no formal ANZSCO classification exists for these occupations)
Visa streams	Skills in Demand visa (Subclass 482) labour agreement stream; Skilled Employer Sponsored Regional visa (Subclass 494) labour agreement stream (Category 2 and 3 only); Employer Nomination Scheme (Subclass 186) labour agreement stream
Agreement term	Five years from execution
Overseas workers cap	No more than one third of the total workforce in any 12-month period
Salary — Category 1 and 2	Full CSIT ($79,423) or TSMIT ($79,423) applies; no salary concession available
Salary — Category 3	Guaranteed earnings of at least 90% of the applicable CSIT or TSMIT ($71,481); full-time employment required; top-up obligation applies
Age concession	Available for SESR and ENS visa applicants in Category 2 and 3 locations only: worker must be under 55 at time of visa application; standard age requirements apply in Category 1
English concession — Category 1	IELTS overall 5.0, minimum 4.0 in each band (SID); IELTS overall 5.0, minimum 4.5 in each band (ENS)
English concession — Category 2 and 3	IELTS overall 5.0, no minimum per band (SID and SESR); IELTS overall 5.0, minimum 4.5 in each band (ENS)
Labour market testing	Compulsory before each nomination; requirements differ by location category
PR pathway	Subclass 186 labour agreement stream (requires three years full-time employment in the nominated occupation in Australia under this agreement)
Relevant award	Pastoral Award 2020 (MA000020) for most of Australia; WA Farm Employees’ Award for WA sole traders, partnerships, and individual-trustee trusts

What is the Dairy Industry Labour Agreement?

Dairy farmer milking cows in a modern facility

The DILA is a formal legal arrangement between an eligible Australian dairy employer and the Commonwealth of Australia, administered by the Department of Home Affairs under the Migration Act 1958 (Cth) and Migration Regulations 1994 (Cth). It sits alongside a small number of other industry template agreements — including arrangements for aged care, advertising, meat, horticulture, and fishing — that the Department has developed with specific industry sectors to address ongoing, documented workforce shortages.

Because the DILA uses a standard template, the fundamental terms — which occupations are covered, what concessions apply, and what obligations the employer takes on — are set by the Department in advance. An employer joining the DILA agrees to those terms rather than negotiating each clause individually. This makes the DILA more accessible than a company-specific labour agreement for many dairy businesses, though it does not remove the need to demonstrate genuine shortage or complete labour market testing.

For a broader overview of how labour agreements work in Australia, see our Labour Agreements page.

Occupations covered under the DILA

The DILA covers two defined occupations. Neither has a formal ANZSCO classification. The Department uses the administrative code 070499 for both for nomination purposes only.

Senior Dairy Cattle Farm Worker

Code 070499

The Senior Dairy Cattle Farm Worker is the higher-level of the two roles. The task list defined in the DILA template is extensive and reflects a worker with genuine operational and supervisory responsibility on a working dairy farm. Under the template, the role includes:

Planning all aspects of milk production, including managing and coordinating milking shed routines
Coordinating and implementing reproductive programs, including artificial insemination, herd fertility management, oestrous detection, and pregnancy checking
Implementing calving procedures, including conducting unsupervised internal assessments to reduce the incidence of stillbirths or injuries to the cow or calf
Assisting in controlled breeding experiments to develop improved livestock strains
Planning and managing pastures, crops, and livestock feeding programs
Analysing produce to set and maintain standards of quality
Supervising animal health programs and handling sick or injured animals consistent with the Australian Animal Welfare Standards and Guidelines for Cattle
Supervising the work routines and performance of less experienced staff, such as assistant farmhands
Implementing and monitoring quality assurance procedures and ensuring all documentation is current
Operating milking plant and equipment, including reading and recording milk vat temperatures and cow numbers, and matching cow ID to calves
Operating a dairy recycling system, calf feeding, and tubing colostrum
Assisting with or performing irrigation works and inspecting livestock to assess feed effectiveness
Transporting, handling, storing, preparing, and applying chemicals
Operating farm and dairy shed vehicles, plant, and equipment; identifying equipment operating abnormally; and maintaining plant and machinery
Transporting stock, feed, and equipment where appropriately licensed
Maintaining records for stock and inventory control and ensuring food safety regulatory requirements are met
Contributing to and implementing occupational health and safety requirements
Coordinating responses to both occupational health and safety emergencies and animal welfare emergencies

What matters under the DILA is whether the worker’s actual duties match what the template describes, not whether the job title matches.

Dairy Cattle Farm Operator

Code 070499

The Dairy Cattle Farm Operator is the entry-level role under the DILA. It covers a worker who applies knowledge and skills to set procedures on a dairy farm, including milking and attending to livestock, haymaking, and fencing, with an appreciation of overall farm operations and with basic levels of problem solving and decision making within set guidelines. The template describes duties including:

Operating milking plant and equipment
Identifying and reporting equipment not operating normally
Reading and recording instrument information, such as milk vat temperatures and cow numbers
Maintaining machinery and undertaking adjustments and size changes
Operating computerised systems using menu options
Knowing general scientific terminology and assisting with processes such as machine repair, artificial insemination, and fertiliser mix design
Working cooperatively as part of a team and contributing in a specific role

DILA concessions by location

The concessions available under the DILA depend on the location category of the farm. Location category is determined by whether the farm’s postcode is classified as regional under the Department of Home Affairs’ skilled migration regional postcodes list. The three categories are:

Category 1Postcodes not designated as regional areas (metropolitan locations)

Category 2Designated regional areas classified as “cities and major regional centres”

Category 3Designated regional areas classified as “regional centres and other regional areas”

The vast majority of working dairy farms in Australia fall within Category 3, meaning most DILA employers can access the salary concession, the relaxed English language requirements, and the under-55 age concession for SESR and ENS nominations.

Concession	Category 1	Category 2	Category 3
Salary (SID/ENS)	Full CSIT of $79,423 applies; no concession	Full CSIT of $79,423 applies; no concession	At least 90% of CSIT ($71,481)
Salary (SESR)	Not available in Category 1	Full TSMIT of $79,423 applies; no concession	At least 90% of TSMIT ($71,481)
Top-up obligation	Applies in all categories	Applies in all categories	Applies in all categories
Full-time employment	Required in all categories	Required in all categories	Required in all categories
Age (SESR and ENS)	Standard age requirements apply	Under 55 at time of visa application	Under 55 at time of visa application
English — SID visa	IELTS 5.0 overall; minimum 4.0 in each band	IELTS 5.0 overall; no minimum per band	IELTS 5.0 overall; no minimum per band
English — SESR visa	Not available in Category 1	IELTS 5.0 overall; no minimum per band	IELTS 5.0 overall; no minimum per band
English — ENS visa	IELTS 5.0 overall; minimum 4.5 in each band	IELTS 5.0 overall; minimum 4.5 in each band	IELTS 5.0 overall; minimum 4.5 in each band

CSIT and TSMIT figures are current from 1 July 2026 and are indexed annually.

What the location categories mean in practice

Dairy farming in Australia is concentrated in regions including the Goulburn-Murray Valley in Victoria, the Southeast of South Australia, the Southwest of Western Australia, the Northern Tablelands of New South Wales, and parts of Queensland and Tasmania. The postcodes covering these areas are almost universally Category 3, which means the 90% salary concession, the no-minimum-per-band English requirement for SID and SESR nominations, and the under-55 age concession for SESR and ENS nominations are available to the large majority of dairy employers entering the DILA.

Visa options under the DILA

Temporary

Skills in Demand visa (Subclass 482) – Labour agreement stream

The Skills in Demand visa (Subclass 482), which replaced the former Temporary Skill Shortage visa on 7 December 2024, is available under the DILA for all location categories. The employer nominates the worker for a period of up to four years. Where the employer is in a Category 3 location, the 90% salary threshold concession and the reduced per-band English requirement apply. All sponsored workers must be employed on a full-time basis throughout the visa period.

Provisional regional

Skilled Employer Sponsored Regional visa (Subclass 494) – Labour agreement stream

The Subclass 494 is available under the DILA for Category 2 and 3 locations only. It is not available for Category 1 employers. Where granted, the visa is for a period of five years. Full-time employment is required and the applicable salary and English concessions for the location category apply. A Subclass 494 holder may be eligible to apply for the Permanent Residence (Skilled Regional) visa (Subclass 191) after meeting the relevant residence and employment requirements.

Permanent

Employer Nomination Scheme (Subclass 186) – Labour agreement stream

The Subclass 186 is the permanent residence pathway under the DILA. To be nominated for a Subclass 186 under this agreement, the worker must have been employed directly by the same sponsor as a primary Subclass 457 or 482 visa holder in the nominated occupation on a full-time basis for at least three years before the ENS nomination is made. Workers who held a Subclass 457 visa before 18 March 2018 may also count that period toward the three-year requirement.

The English concession for the ENS stream requires an IELTS overall of 5.0 with a minimum of 4.5 in each band across all location categories. In Category 2 and 3 locations, the age concession allows nomination of workers who are under 55 at the time of visa application lodgement. Standard age requirements apply in Category 1.

Employer eligibility for the Dairy Industry Labour Agreement

To enter the DILA, a dairy business must be actively and lawfully operating in Australia in a genuine dairy farming operation and must be financially viable.

The employer must demonstrate a genuine need for overseas workers in the nominated occupation that cannot be met through local recruitment. This requires documented evidence specific to the farm’s situation — how many positions are vacant, how long they have been vacant, what recruitment attempts have been made locally, and how the shortage is affecting farm operations.

Labour market testing is compulsory before any nomination is lodged. The specific requirements differ by location category (see below under the process section). The employer must also demonstrate a plan for reducing reliance on overseas workers over the life of the agreement.

The employer must pay each sponsored worker in full-time employment, at a rate no lower than the Pastoral Award 2020 (MA000020) minimum for the relevant classification, and no lower than the applicable income threshold (or the 90% concession amount for Category 3). Where an annualised salary is paid and an Australian worker doing equivalent work at the same location under different salary arrangements is paid more over a 12-month period, the employer must make a top-up payment to the overseas worker equal to the difference, paid in the month after the end of the 12-month period.

Overseas workers may not exceed one third of the employer’s total workforce in any 12-month period of the agreement. The employer must also ensure that any labour hire or recruitment company used to source overseas workers is licensed in accordance with applicable state or territory legislation, and that overseas workers work directly for the employer once engaged.

Stakeholder consultation requirements do not differ from standard sponsorship obligations, but the employer must satisfy all standard sponsorship conditions under the Migration Regulations 1994 (Cth).

Requirements for overseas dairy workers

The qualifications and experience required under the DILA differ by occupation and visa stream, and are set out in Schedule 4 of the official template.

Senior Dairy Cattle Farm Worker

For a Skills in Demand (Subclass 482) visa, the worker must hold at least an AQF Certificate III (or overseas equivalent) and at least two years of recent and relevant dairy work experience, or at least three years of recent and relevant dairy work experience without a formal qualification. For an ENS (Subclass 186) visa, the worker must have at least three years of full-time work experience in Australia in the nominated occupation under this agreement.

Dairy Cattle Farm Operator

For a Skills in Demand (Subclass 482) visa, the worker must hold at least an AQF Certificate II or III (or overseas equivalent), or have at least one year of recent and relevant dairy work experience. For a Subclass 494 (SESR) visa, the worker must have at least two years of recent and relevant work experience, regardless of whether that experience was gained in Australia or overseas. For an ENS (Subclass 186) visa, the worker must have at least three years of full-time work experience in Australia in the nominated occupation under this agreement. A short period of on-the-job training may be required in addition to any formal qualification.

All workers must meet the English language requirement applicable to their visa stream and location category as set out in the concessions table above. All workers must meet the health and character requirements under the Migration Act 1958 (Cth). For SESR and ENS visa applications in Category 2 and 3 locations, the worker must be under 55 years of age at the time of visa application lodgement.

How to access the Dairy Industry Labour Agreement

Confirm your location category and eligibility
Before preparing any documentation, confirm which location category your farm’s postcode falls into using the Department of Home Affairs’ regional postcodes list. This determines which concessions apply and whether the Subclass 494 stream is available. Our migration lawyers can assist with this assessment.
Conduct labour market testing
Labour market testing must be completed before lodging any nomination. The requirements differ by location category.
For Category 1 locations, evidence of labour market testing must accompany each nomination and must meet the same standard as required under the standard employer-sponsored visa program.
For Category 2 locations, the employer must demonstrate at least two separate attempts to test the Australian labour market for the nominated occupation in the 12 months before lodging the nomination, each with national reach.
For Category 3 locations, at least two separate attempts are required in the 12 months before nomination. One advertisement must have national reach — through platforms such as Seek, Indeed, or Workforce Australia, or through a relevant industry website, national print media, or national radio. The second advertisement may be local or regional, such as on the business’s own website or in local print media or radio.
Prepare and lodge the DILA request
The employer lodges the request through ImmiAccount, providing evidence of farm operations, the genuine need for overseas workers, labour market testing outcomes, proposed salary arrangements, and any additional information the Department requires. The Department sets nomination ceilings for each year of the five-year agreement term. If the employer needs to increase those ceilings during the agreement, a variation must be requested and updated workforce and recruitment data provided.
Agreement executed
Once the Department is satisfied, the agreement is executed. The employer becomes an approved sponsor under the agreement and can begin lodging nominations within the approved ceilings. The agreement is reviewed after three years and on an annual basis where additional nomination ceilings are sought.
Lodge nominations and visa applications
After the agreement is in place, the employer lodges a nomination for each overseas worker under the applicable visa stream. Once the nomination is approved, the worker lodges their visa application. The Skilling Australians Fund (SAF) levy is payable by the employer at each nomination.

What the Department of Home Affairs expects to see

A strong DILA request includes:

Farm operations data — herd size, milk production volumes, the number and nature of current vacancies, and the farm’s operating structure
Recruitment evidence — copies of advertisements placed, platforms used, applications received, and reasons why suitable local candidates were not appointed
Workforce plan — the current breakdown of Australian and overseas workers and the employer’s plan to reduce reliance on overseas labour over the five-year agreement term
Salary benchmarking — evidence that the proposed remuneration meets or exceeds the Pastoral Award 2020 floor and the applicable CSIT or TSMIT (or 90% concession in Category 3)
Location category evidence — confirmation of the farm’s postcode and its applicable regional classification

Salary, award and workplace obligations

Sponsored dairy workers must be employed on a full-time basis and paid at least the rate required under the Pastoral Award 2020 (MA000020), which is the federal award covering dairy farming for national system employers across Australia. For Western Australian dairy businesses that are sole traders, partnerships, or individual-trustee trusts in the WA state system, the WA Farm Employees’ Award applies instead.
In all location categories, the salary paid must also meet or exceed the applicable income threshold. For Subclass 482 and 186 nominations, this is the CSIT, which is $79,423 from 1 July 2026. For Subclass 494 nominations, this is the TSMIT, also $79,423 from 1 July 2026. In Category 3 locations, the 90% concession reduces the minimum to $71,481 for both thresholds. The Australian Market Salary Rate (AMSR) must also be considered: the worker must always be paid at least the higher of the applicable threshold and the market rate for the role.
Where an annualised salary is paid and an equivalent Australian worker performing the same work at the same location under different salary arrangements receives a higher amount over any 12-month period, the employer must pay a top-up equal to the difference. This top-up must be paid in the month following the end of that 12-month period.
Salary must be paid directly to the worker. The employer must not deduct amounts from the worker’s pay except where authorised in writing by the worker for the worker’s benefit, authorised under an enterprise agreement, authorised by a modern award or Fair Work Act order, or required by law. The employer must not charge the sponsored worker fees for services, including fees for nomination or for securing employment.
All sponsored workers must be provided with written information on their workplace rights within seven days of commencing employment under the agreement.

For a full list of ongoing sponsor obligations, see our Sponsorship Obligations page.

Common DILA mistakes

Claiming regional concessions for the wrong location category

A farm whose postcode falls within Category 1 or 2 cannot access the Category 3 salary concession of 90% of the applicable threshold. Checking the farm’s postcode against the Department’s regional postcodes list before lodging a request is essential, not optional.

Worker duties that do not match the defined occupation

The DILA defines the task lists for each occupation in precise detail in the template. A nomination will not succeed if the work the sponsored worker will actually perform does not genuinely match those task descriptions. A worker nominally titled “Dairy Cattle Farm Operator” who performs duties clearly consistent with the Senior Dairy Cattle Farm Worker definition should be nominated under the higher-level role. Getting the match right from the start matters.

Weak labour market testing

Providing only a single advertisement, using channels with reach that does not meet the requirements for the location category, or advertising outside the required 12-month window before nomination will result in the nomination being refused. The standard required differs by category and must be met precisely.

Paying below the award or applicable threshold

The salary concession for Category 3 locations allows nominations at 90% of the applicable income threshold, but it does not permit the employer to pay below the Pastoral Award 2020 minimum wage for the relevant classification. Both floors must be satisfied simultaneously. Failing to apply the top-up obligation where an equivalent Australian worker is paid more is a separate compliance breach under the agreement.

Poor compliance history

Businesses with adverse compliance histories, including findings under workplace health and safety legislation, Fair Work Act obligations, or previous migration sponsorship conditions, face heightened scrutiny at the request stage. A DILA request from a business with unresolved compliance issues is unlikely to be approved.

Information for overseas dairy workers

Overseas dairy workers cannot apply for a DILA independently. The agreement must be held by an Australian dairy employer, who lodges the nomination and takes on the associated obligations. Only after the employer’s nomination is approved can the worker apply for their visa.

If you are an overseas worker with dairy experience seeking sponsorship in Australia, the first step is finding an eligible Australian dairy employer willing to sponsor you. Experienced dairy workers with supervisory or herd management experience consistent with the Senior Dairy Cattle Farm Worker task list are in genuine demand in regional dairy regions across Victoria, South Australia, Western Australia, New South Wales, Queensland, and Tasmania.

Permanent residence is available through the Subclass 186 labour agreement stream after at least three years of full-time employment in the nominated occupation with the same sponsoring employer, subject to meeting all agreement and visa requirements. Subclass 494 holders also have a potential pathway through the Permanent Residence (Skilled Regional) visa (Subclass 191) after meeting the relevant residence and employment requirements for that visa.

How our migration lawyers can help

Our migration lawyers assist dairy employers in confirming their location category, assessing DILA eligibility, preparing labour market testing documentation, drafting the agreement request, and managing nominations and visa applications. We also advise on the top-up and reporting obligations that apply throughout the agreement term, and on compliance with the Pastoral Award 2020 and applicable income thresholds. Overseas dairy workers can seek our advice on the visa requirements and experience standards that apply to their occupation and background.

Book a consultation to check your farm’s DILA eligibility

Whether you are a dairy farmer looking to sponsor your first overseas worker or an established operation with a recurring workforce gap, our migration lawyers can assess your farm’s eligibility, location category, and the most appropriate visa stream. Book a consultation to discuss your situation.

This page provides general information about the Dairy Industry Labour Agreement and does not constitute legal or migration advice. The DILA template terms are set by the Department of Home Affairs and are subject to change. The CSIT and TSMIT are indexed annually. Confirm the current figures before publishing and before making any decisions.