Childcare Labour Agreement | Australian Migration Lawyers

At a glance: key facts

Ciri	Detail
Industry Labour Agreement	None published for childcare
Available Routes	Standard Skills in Demand visa (Subclass 482) Core Skills stream; Employer Nomination Scheme (Subclass 186) Direct Entry; company-specific labour agreement; DAMA (if in a designated regional area); Subclass 494 direct employer-sponsored stream for regional centres
Primary Occupation	Child Care Worker (ANZSCO 421111), Skill Level 3. On the CSOL. Accessible via the Subclass 482 Core Skills stream, Subclass 186 Direct Entry, the Subclass 494 employer-sponsored stream (regional), and DAMA (where applicable)
Other Relevant Occupations	Early Childhood (Pre-primary School) Teacher (ANZSCO 241111), Skill Level 1. On the CSOL. Accessible via standard Skills in Demand visa sponsorship. Child Care Centre Manager (ANZSCO 134111), Skill Level 2
Laluan Visa	Skills in Demand visa (Subclass 482) Core Skills stream (standard); Employer Nomination Scheme (Subclass 186) Direct Entry (standard); Skills in Demand visa (Subclass 482) Labour Agreement stream (company-specific agreement); Subclass 494 employer-sponsored stream (DAMA or direct regional); Employer Nomination Scheme (Subclass 186) Labour Agreement stream
Key Concessions Available	English language; salary threshold (Category 3 regional locations only: 10% concession to the applicable TSMIT or CSIT; not available for Category 1 or Category 2 locations); age (negotiated, evidence-dependent, none guaranteed)
Qualification Requirement	Overseas qualifications must be assessed by ACECQA for ratio-counting purposes under the National Quality Framework
Teacher Registration	Required as a condition of employment (not visa grant) in SA, WA, VIC and NSW for Early Childhood Teachers; voluntary in ACT; not yet required in TAS, QLD and NT
Award Coverage	Children’s Services Award 2010. New classification structure applies from 1 March 2026; 4.75% wage increase from 1 July 2026
Agreement Term	Up to five years from execution
Masa Pemprosesan	Not published by the Department of Home Affairs. Contact our migration lawyers for guidance

Is there a childcare industry labour agreement?

No. Childcare is not among the sectors for which the Department of Home Affairs has published a template industry labour agreement. The current published industry labour agreements cover sectors including advertising, aged care, dairy, fishing, horticulture, meat, and pork. Childcare does not appear on this list, and no peak body in the sector holds a co-signed industry template agreement with the Department of Home Affairs.

This is a critical point for any childcare operator who has encountered references to a “childcare labour agreement” online. While it is accurate to say that a childcare centre can obtain a labour agreement, that agreement will be a company-specific arrangement negotiated individually between the employer and the Department of Home Affairs. This places the full evidentiary and negotiation burden on the individual employer, making the process considerably more involved than joining a pre-existing industry template.

For a broader overview of how the different types of labour agreements operate, including industry, company-specific, and DAMA arrangements, see our Labour Agreements page.

Young students learning with their teacher in a classroom

Why childcare centres use labour agreements

Child Care Worker (ANZSCO 421111), classified at Skill Level 3 under the Australian and New Zealand Standard Classification of Occupations (ANZSCO), appears on the Core Skills Occupation List (CSOL). Standard Skills in Demand visa (Subclass 482) Core Skills stream sponsorship and Employer Nomination Scheme (Subclass 186) Direct Entry are available for this occupation where the salary offered meets the applicable income threshold. For centres that can satisfy standard requirements, this is the most straightforward route. A company-specific labour agreement or DAMA becomes relevant where the centre or the prospective worker cannot meet those standard requirements, or where specific concessions are needed. Common reasons include an inability to meet the full income threshold in a Category 3 regional location, a worker who does not meet the standard English language test score, an age-related barrier to permanent residence pathways, or a shortfall in the standard work experience requirement.

The situation is different for Early Childhood Teachers. Early Childhood (Pre-primary School) Teacher (ANZSCO 241111) is on the CSOL and the Medium and Long-term Strategic Skills List (MLTSSL), which means centres seeking to sponsor a degree-qualified early childhood teacher can do so through standard Skills in Demand visa sponsorship without needing a labour agreement, provided the salary meets the applicable income threshold.

Beyond the occupation list position, Australia’s early childhood education and care sector has faced sustained and documented workforce shortages, particularly in regional areas and rapidly growing urban corridors. The qualification requirements attached to educator-to-child ratios under the National Quality Framework mean that not all workers who might fill a vacancy can be counted toward the ratios that permit a centre to operate at full capacity. A labour agreement or DAMA that enables the centre to sponsor a suitably qualified overseas educator addresses both the staffing and the regulatory compliance dimensions of the problem.

Choosing the right route to sponsor an early childhood educator

Four pathways exist for early childhood education centres looking to sponsor an overseas worker in ANZSCO 421111. Which one fits depends on where the centre is located, whether a DAMA covers that area, and whether any concessions are needed.

Route 1

Standard Skills in Demand visa (Subclass 482) or ENS (Subclass 186) sponsorship

For centres anywhere in Australia that can meet the standard CSIT of $79,423 from 1 July 2026, standard 482 Core Skills stream sponsorship is the simplest and fastest route. No labour agreement or DAMA is required. Standard 186 ENS Direct Entry is also available. Skills assessment is through ACECQA, which assesses overseas qualifications against a Certificate III or higher level early childhood education and care qualification that it recognises as nationally approved. No caveat applies to this occupation on the CSOL.

Route 2

Your centre is in a DAMA-designated area

Where the centre is in a DAMA area and the DAMA lists ANZSCO 421111, the DAMA may offer concessions on English language, salary, or age that standard sponsorship does not. This makes it a stronger option where the worker or the centre cannot meet standard requirements. There are currently 13 DAMAs in place across Australia. Our migration lawyers can confirm whether your postcode falls within a designated area and whether ANZSCO 421111 is listed under the applicable DAMA, or you can check the Department of Home Affairs DAMA page and contact the relevant Designated Area Representative directly.

Route 3

Your centre is in a regional area but not in a DAMA

The Subclass 494 is available for ANZSCO 421111 in designated regional areas where the centre is not within a DAMA. No concessions apply, but the visa provides a five-year work right and a pathway to permanent residence through the Subclass 191.

Route 4

Your centre needs concessions that standard sponsorship and a DAMA do not provide

A company-specific labour agreement gives the most flexibility, including salary concessions for centres in Category 3 regional locations only (a concession of up to 10% to the applicable TSMIT or CSIT). It requires a full negotiation with the Department of Home Affairs and takes considerably longer than the other options.

Quick reference

Ciri	Standard 482/186	Subclass 494 Regional	DAMA	Company-specific LA
Konsesi	Tidak	Tidak	ya	Yes (negotiated)
Negotiation required	Tidak	Tidak	DAMA endorsement only	Extensive
Regional location required	Tidak	ya	Yes (within DAMA area)	Tidak
Laluan PR	186 TRT or Direct Entry	Subclass 191	186 LA stream or Subclass 191	186 LA stream
Best for	Any centre meeting standard salary	Regional centres outside DAMA areas	Centres in a listed DAMA area	Where concessions needed and no DAMA applies

Childcare occupations you can sponsor

ANZSCO 421111

Pekerja Penjagaan Kanak-kanak

This occupation is classified at Skill Level 3 under ANZSCO and covers workers who provide care and supervision for children in programs such as long day care and occasional care in childcare centres. “Early Childhood Worker” is an alternative title for the same ANZSCO code. The occupation appears on the Core Skills Occupation List (CSOL) and is accessible through standard Skills in Demand visa (Subclass 482) Core Skills stream sponsorship and the Employer Nomination Scheme (Subclass 186) Direct Entry stream. It is also accessible via the Subclass 494 employer-sponsored stream for regional centres, and via a company-specific labour agreement or DAMA where concessions on salary, English language, age, or work experience are required.

For overseas workers to be counted toward the staff-to-child ratios required under the National Quality Framework, their qualifications must be assessed and recognised by the Australian Children’s Education and Care Quality Authority (ACECQA). Relevant Australian qualifications include the Certificate III in Early Childhood Education and Care (CHC30121 or CHC30125) and the Diploma of Early Childhood Education and Care (CHC50121 or CHC50125). Overseas qualifications must be assessed against ACECQA’s approved qualifications list before an educator can count toward ratios in a regulated service.

ANZSCO 241111

Guru Awal Kanak-kanak (Pra-sekolah rendah)

This occupation is classified at Skill Level 1 under ANZSCO and applies to degree-qualified teachers working in early childhood settings. It appears on both the CSOL and the MLTSSL, which means it is accessible through standard Skills in Demand visa (Subclass 482) Core Skills stream sponsorship and through the Employer Nomination Scheme (Subclass 186) without requiring a labour agreement, provided the salary offered meets the applicable income threshold.

For migration purposes, skills assessments for this occupation are conducted by ACECQA, which took over from the Australian Institute for Teaching and School Leadership (AITSL) in December 2024 for early childhood teacher assessments. In addition to the ACECQA skills assessment, workers must obtain teacher registration as a condition of employment in the state or territory where they will work. Registration is mandatory for Early Childhood Teachers in New South Wales, Victoria, South Australia, and Western Australia. It is voluntary in the Australian Capital Territory and is not yet required in Tasmania, Queensland, and the Northern Territory, although Tasmania has formally committed to introducing it following a legislative review.

ANZSCO 134111

Pengurus Pusat Jagaan Kanak-kanak

This occupation applies to those responsible for managing the operations, staff, and regulatory compliance of a childcare facility, and is classified at Skill Level 2. Depending on the salary offered and the current occupation list status, this role may be accessible through standard employer-sponsored visa pathways. Where it is not, it can be included in a company-specific labour agreement if the employer can demonstrate a genuine need and that local recruitment has not produced a suitably qualified candidate.

Visa options under a childcare workers

Sementara

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 the temporary visa pathway for overseas workers sponsored under a company-specific labour agreement. Once the agreement is executed and a nomination is approved, the overseas worker applies under the Subclass 482 Labour Agreement stream. Salary requirements and any concessions are governed by the terms of the executed agreement rather than the general income thresholds that apply to the Core Skills stream.

Serantau

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

For childcare centres in a regional area, the Skilled Employer Sponsored Regional (Provisional) visa (Subclass 494) is available for Child Care Worker (ANZSCO 421111) through the employer-sponsored occupation stream. Where the centre is also in a DAMA area, additional concessions may be available through the DAMA rather than through standard Subclass 494 sponsorship. The Subclass 494 provides a pathway to permanent residence through the Permanent Residence (Skilled Regional) visa (Subclass 191).

Permanent

Employer Nomination Scheme (Subclass 186) - Labour agreement stream

Workers sponsored under a company-specific labour agreement may be eligible to transition to permanent residence through the Labour Agreement stream of the Employer Nomination Scheme (Subclass 186). Eligibility depends on the specific terms of the executed agreement, the worker’s English language proficiency, relevant work experience, and the employer’s continued compliance with sponsorship obligations throughout the temporary visa period.

Concessions you can request and justify

One of the primary reasons childcare centres pursue a company-specific labour agreement rather than direct Subclass 494 sponsorship is to access concessions that standard visa programs do not provide. Concessions are not automatic. Each must be specifically requested, supported with evidence, and approved by the Department of Home Affairs during the negotiation of the agreement.

English language

Standard English language requirements for employer-sponsored visas can be a barrier for overseas childcare workers who hold strong qualifications and practical experience but do not meet the standard test score thresholds. A company-specific labour agreement may allow for a reduced English language requirement, but the employer must provide specific evidence that the concession is appropriate for the role and that worker welfare and communication standards will be maintained.

Ambang gaji

Salary threshold concessions are only available for businesses located in Category 3 regional areas. A salary concession is not available for Category 1 city locations (Sydney, Melbourne, and Brisbane) or Category 2 locations (including Perth, Adelaide, Gold Coast, Sunshine Coast, Canberra, Newcastle, Wollongong, Geelong, and Hobart). The current published company-specific labour agreement template provides for a concession of up to 10% to the applicable Temporary Skilled Migration Income Threshold (TSMIT) or Core Skills Income Threshold (CSIT) for Category 3 locations. Any salary concession approved under a labour agreement does not override the employer’s obligations under the applicable industrial instrument. Sponsored childcare workers must be paid at least the minimum rate set by the Children’s Services Award 2010 under their applicable classification. From 1 March 2026, a new simplified classification structure applies to award-covered employees following a Fair Work Commission determination on gender-based undervaluation, and minimum rates increased further by 4.75% from 1 July 2026. The salary offered must meet whichever is the higher of the award minimum and any rate specified in the executed labour agreement.

Umur

Where standard permanent residence criteria would create a barrier due to a worker’s age, a concession may be negotiable under the terms of a company-specific agreement. Any age concession must be separately approved during negotiation and cannot be assumed.

Work experience

In some cases, a concession on minimum work experience requirements may be negotiable where an overseas worker holds strong formal qualifications but has not completed the standard years of relevant employment. The employer must demonstrate the genuineness of the need and the worker’s capability to perform the role.

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Requirements for childcare employers

To request a company-specific labour agreement and nominate workers under it, the employer must satisfy the following conditions.

The centre must operate a legally registered early childhood education and care service in Australia, approved under the relevant state or territory legislation and subject to the National Quality Framework.
The employer must hold, or be eligible to obtain, approved sponsor status under the Migration Act 1958 (Cth) and Migration Regulations 1994 (Cth). Centres with adverse sponsorship compliance history will face additional scrutiny.
The employer must demonstrate a genuine shortage of suitably qualified local childcare staff through documented evidence of recruitment attempts and their outcomes, not a general assertion about sector-wide difficulties.
Compulsory labour market testing must be completed before any nomination is lodged. The employer must advertise the position through appropriate channels, document all responses, and retain recruitment evidence in a form that can be submitted with the labour agreement request or nomination.
Sponsored workers must be paid at the market salary rate for the role, consistent with the applicable industrial instrument. For most childcare workers, the relevant award is the Children’s Services Award 2010. The new classification structure effective from 1 March 2026 and the wage increases effective from 1 July 2026 must both be reflected in the salary offered.
The employer must also demonstrate a plan to reduce reliance on overseas labour over the term of the agreement. The Department of Home Affairs treats company-specific labour agreements as temporary solutions. Submissions that suggest ongoing dependence on overseas workers with no transition plan are unlikely to succeed. Separately, the Skilling Australians Fund (SAF) levy is payable by the employer at the nomination stage. This replaced the former training benchmark contribution requirement for company-specific labour agreements.

Requirements for overseas educators

Overseas childcare workers seeking to be sponsored under a labour agreement must satisfy the requirements set by both the visa program and the executed agreement.

The worker must hold qualifications relevant to the nominated role. For Child Care Worker (ANZSCO 421111) positions, qualifications are assessed by ACECQA against its approved qualifications list. For an overseas educator to be counted toward the staff-to-child ratios required under the National Quality Framework, their overseas qualification must be assessed as equivalent to an approved Australian Certificate III or Diploma level qualification in early childhood education and care. ACECQA publishes its approved qualifications list on its official website.
The worker must demonstrate English language proficiency at the level required under the agreement, which may be the standard requirement or a negotiated concession.
Health and character requirements under the Migration Act 1958 (Cth) must be met.
For workers nominated as Early Childhood (Pre-primary School) Teachers (ANZSCO 241111), teacher registration must be obtained as a condition of employment in the state or territory where the worker will practise. Registration requirements currently apply in New South Wales, Victoria, South Australia, and Western Australia. Workers in the Australian Capital Territory, Tasmania, Queensland, and the Northern Territory should confirm the current registration position with the relevant state or territory authority before commencing employment.

How to get a childcare labour agreement

1
Assess your centre’s route
Before preparing any documentation, establish whether your centre qualifies for direct Subclass 494 sponsorship, a DAMA, or a company-specific labour agreement, or whether standard Skills in Demand visa (Subclass 482) sponsorship is the most appropriate route. The route affects the evidence required, the timeframe, and the concessions available. Our migration lawyers can complete this assessment based on your centre’s location, the occupation you need to fill, and the salary you are able to offer.
2
Menjalankan ujian pasaran buruh
Compulsory labour market testing must be completed before lodging a nomination or a labour agreement request. Advertise the position through appropriate channels, document all responses, and retain all recruitment evidence in a form that can be submitted to the Department of Home Affairs.
3
Prepare and lodge the labour agreement request
For a company-specific labour agreement, prepare and lodge a formal request through ImmiAccount. The submission must address the basis for the agreement, the nominated occupation or occupations, proposed salary and conditions, evidence of genuine workforce need, labour market testing outcomes, and any concession requests with specific supporting justification. Stakeholder consultation with the relevant industry body and applicable union must also be completed and documented before the request is submitted.
4
Agreement negotiated and executed
The Department of Home Affairs reviews the request and, if satisfied, negotiates and executes the agreement. This is typically the most time-intensive stage. Once the agreement is executed, it specifies the terms under which the centre can lodge individual nominations.
5
Lodge nominations and visa applications
After the agreement is in place, the centre lodges nominations for each overseas worker under the applicable visa stream. Once a nomination is approved, the worker lodges their visa application. The SAF levy is payable by the employer at the nomination stage.

What the Department of Home Affairs expects to see

A company-specific labour agreement request is a detailed evidentiary submission. The Department of Home Affairs expects:

Current vacancy data and evidence that the position has been genuinely difficult to fill locally
Documentation of recruitment efforts, including advertising evidence and outcomes
A workforce plan demonstrating how the centre will reduce its reliance on overseas workers over the term of the agreement, including how it will develop its Australian workforce
Salary benchmarking confirming the proposed remuneration meets the market rate under the applicable classification of the Children’s Services Award 2010
Details of the centre’s enrolment demand and the impact of the vacancy on service delivery and regulatory compliance
Evidence that the centre meets its obligations under the National Quality Framework
Outcomes of stakeholder consultation with the relevant industry body and applicable union

Obligations after your agreement is approved

Holding a company-specific labour agreement carries ongoing obligations beyond the standard duties of an approved sponsor.

Centres must comply with all sponsorship obligations under the Migration Act 1958 (Cth) and Migration Regulations 1994 (Cth), including paying the sponsored worker at the agreed rate, maintaining employment records, and cooperating with any Department of Home Affairs monitoring or audit.
Any material change to the worker’s employment arrangements or to the centre’s circumstances that affects compliance with the agreement must be reported to the Department of Home Affairs.
In line with the Department of Home Affairs’ published position for company-specific labour agreements, overseas workers must not comprise more than one-third of the total workforce. Reliance on overseas workers must decrease over the life of the agreement. The executed agreement’s terms and any applicable current guidance from the Department of Home Affairs govern how this requirement applies to the centre’s specific circumstances.
Centres must observe any annual nomination ceiling specified in the executed agreement and must not nominate more workers than the agreement permits.
The centre must continue to meet its childcare regulatory obligations, including staff-to-child ratios and qualification requirements under the National Quality Framework, throughout the term of the agreement.

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

Common mistakes childcare centres make

Requesting concessions without evidence

Concessions are negotiated, not automatic. A request for a reduced English language requirement or a lower salary threshold without specific, documented justification will not be approved. Each concession request requires its own evidentiary basis addressed separately in the submission.

Assuming salary concessions are available for non-Category 3 centres

Salary threshold concessions under a company-specific labour agreement are not available for Category 1 city locations (Sydney, Melbourne, and Brisbane) or Category 2 locations (including Perth, Adelaide, Gold Coast, Sunshine Coast, Canberra, Newcastle, Wollongong, Geelong, and Hobart). Only centres located in Category 3 regional areas are eligible to request a salary concession, and that concession is limited to 10% of the applicable TSMIT or CSIT. Centres in Category 1 or Category 2 locations must be able to meet standard salary requirements. Proceeding on the assumption that a salary concession will be approved for a non-Category 3 location wastes time and resources.

Labour market testing that is weak or out of date

Testing conducted too far in advance of the request, through inadequate advertising channels, or that does not reflect a genuine recruitment effort is a common basis for refusal or significant delay. The Department of Home Affairs expects advertising that is recent, appropriately targeted, and genuinely conducted.

Nominating roles outside the agreement

Attempting to nominate a worker for a role not included in the executed agreement, or that does not correspond to the agreed occupation and duties, will result in refusal.

Underpaying against the award

A salary concession negotiated into a labour agreement does not override the employer’s minimum obligations under the applicable industrial instrument. Paying a sponsored worker below the minimum rate set by the Children’s Services Award 2010 under their applicable classification from 1 March 2026 is an industrial compliance breach that can also lead to cancellation of sponsorship approval.

Sponsoring workers whose qualifications have not been recognised

Nominating a worker for a childcare educator role before their overseas qualifications have been assessed by ACECQA creates a compliance risk at both the migration and childcare regulatory level. ACECQA recognition must be confirmed before the nomination is lodged.

Information for overseas childcare workers

Teacher and young students holding balloons in a classroom

Overseas childcare workers cannot initiate a visa application under a labour agreement independently. The arrangement must be held by an Australian employer. The centre lodges the labour agreement request, and only after the agreement is executed and a nomination is approved can the worker lodge their visa application.

If you are an overseas childcare professional exploring whether an Australian centre could sponsor you, it is worth confirming whether a prospective employer holds an existing labour agreement or DAMA endorsement, and whether your qualifications appear on the ACECQA approved qualifications list or can be assessed as equivalent. Permanent residence may be available through the Subclass 186 Labour Agreement stream after the worker has met the employment and service conditions specified in the agreement, or through the Subclass 191 regional pathway for workers on a Subclass 494 visa. Our migration lawyers can advise on what the process involves from a worker’s perspective.

How our migration lawyers can help

Our migration lawyers assist childcare centres across Australia in identifying the most appropriate sponsorship route for their circumstances, whether that is standard Skills in Demand visa (Subclass 482) Core Skills stream sponsorship, direct Subclass 494 regional sponsorship, a DAMA, or a company-specific labour agreement. We advise on employer eligibility, confirm which route is available given the centre’s location and the occupation, prepare concession cases and labour market testing evidence, draft and lodge the labour agreement request, and manage nominations and visa applications once the agreement is in place.

We also assist overseas childcare educators in understanding their visa options, qualification recognition requirements, and the permanent residence pathways available under a labour agreement or regional visa.

Book a consultation to find the right sponsorship route for your centre

Whether your childcare centre needs standard employer-sponsored visa advice, a DAMA endorsement, or a company-specific labour agreement, our migration lawyers can identify the most appropriate and efficient pathway for your circumstances. Book a consultation to discuss your centre’s situation and the steps involved.

This page provides general information about sponsorship and labour agreement pathways for childcare centres and does not constitute legal or migration advice. Requirements and Department of Home Affairs policy are subject to change.