NSW DAMA to test One Nation and the Coalition

With regional employers supporting NSW Government plans for a Designated Area Migration Agreement, it will be fascinating to watch how One Nation and the Coalition respond to this DAMA and existing DAMAs, writes Dr Abul Rizvi.

THE NSW GOVERNMENT is currently undertaking consultations on a Designated Area Migration Agreement (DAMA) for regional NSW.

This is designed to expand migration to regional NSW.

If supported by the Coalition and One Nation, it would make it harder for these two parties to hit their respective Net Overseas Migration (NOM) targets (which is already going to be very difficult).

If opposed, there would be a large backlash from employers in regional NSW.

Which option will they choose?

In my view, it is certain they will support the new DAMA as well as existing DAMAs in other states.

One Nation nor the Nationals would be able to cope with the employer backlash.

This will be another part of the steady watering down of the over-the-top language used by both the Coalition and One Nation in their recent policy announcements.

That language is targeted at a specific part of their voter base — not actual policy.

DAMAs use targeted concessions to the standard temporary employer-sponsored subclass 482 visa or the employer-sponsored regional provisional visa subclass 494.

Both these visas provide a pathway to permanent residence.

Strong growth in recent years in the subclass 482 visa (see Chart 1), driven by a strong labour market, is the reason behind the large increase in the employer-sponsored permanent visa of the Migration Program.

The subclass 494 visa is not as popular as it requires the applicant to meet threshold criteria for age, skill and English language ability.

NSW proposes two parts to its DAMA. One covering inland regional areas of NSW (Tier 1) and the other covering coastal regions of NSW (Tier 2).

The NSW DAMA will largely be administered by the State Government in much the same way the SA Government administers its existing DAMA.

That will make the NSW regional development bodies unhappy about their more limited role.

Burke's immigration plan commits to net overseas migration targets

Tony Burke's immigration policy changes are like a Curate's Egg - good in parts, but are they enough to lower NOM to the targets Burke has set for himself?

The approach is unlike that taken in Queensland, where the development and administration of DAMAs has been led by regional development authorities.

In Queensland, there are two DAMAs – one for Far North Queensland centred on Cairns and another for Townsville.

In WA there is a DAMA that covers all of WA, including Perth, administered by the WA state government. That is in addition to four other DAMAs for the Goldfields, Kimberley, Pilbara and South-West run by the respective regional development bodies.

Proposed NSW DAMA

In the proposed NSW DAMA, the range of occupations is much broader than those used in the most recent Skilled Independent category — and also broader than occupations in the Core Skills List.

There are numerous occupations in Skill Level 4 (ie semi-skilled), particularly for coastal areas of NSW such as forklift drivers; miners; drillers; crane operators.

Age concessions are proposed for selected occupations classified at ANZSCO Skill Levels 1 to 3.

These concessions are intended to provide regional employers with greater flexibility in attracting experienced workers where workforce needs cannot be met locally.

Compared with the standard maximum age of 45 years, the proposed age limits are:

Skill Levels 1–2

o Tier 1 (Inland Regional NSW): up to 55 years

o Tier 2 (Coastal Regional NSW): up to 50 years

Skill Level 3

o Tier 1 (Inland Regional NSW): up to 50 years

o Tier 2 (Coastal Regional NSW): up to 47 years

There are no age concessions for semi-skilled occupations such as truck drivers, storepersons, scaffolders, etc.

Coalition and One Nation migration plans built on false assumptions

Coalition and One Nation promises to slash migration rely on unrealistic targets for reducing Australia's massive bridging visa backlog.

Salary concessions are proposed for selected occupations in Tier 1.

These concessions would allow employers to nominate workers who will be paid at least 90% of the applicable Core Skills Income Threshold (CSIT) or Temporary Skilled Migration Income Threshold (TSMIT), while also meeting Award requirements and Annual Market Salary Rate expectations for the specific occupation and location.

The current TSMIT is around $80,000. As this is well above the level it was frozen at under the former Coalition Government for a decade (ie $53,000), it would be difficult for the Coalition to criticise the concession.

The NSW Government states:

'Additional concessions, including concessions relating to English language proficiency and skills requirements, may be considered in future iterations of the NSW DAMA. Any concessions would be subject to evidence of workforce need and approval by the Australian Government.'

One Nation’s migration maths doesn’t add up

One Nation’s plan to slash temporary migration by 750,000 promises dramatic cuts, but its numbers, assumptions and economic consequences don’t add up.

There will be pressure from regional employers for concessions on English language skills. The NSW Government appears to be resisting that at this stage.

Note the major feeder visas to this DAMA will, as in other states, be people already in Australia on Temporary Graduate/Student visas and to a lesser degree on Working Holiday Maker visas.

According to the rhetoric, both the Coalition and One Nation propose to abolish Temporary Graduate visas and force all students to go offshore to apply for a visa.

How will regional employers respond when they realise a major source of their workforce is to be abolished?

It will be fascinating to watch how One Nation and the Coalition respond to this DAMA and indeed other existing DAMAs.

Dr Abul Rizvi is an Independent Australia columnist and former Deputy Secretary of the Department of Immigration. You can follow Abul on Twitter @RizviAbul or Bluesky @abulrizvi.bsky.social.