Australian dairy farms now have a powerful solution to their skilled worker shortage through the dairy industry labour agreement. Farm owners can sponsor overseas talent for up to 4 years with options for permanent residence. The agreement focuses on two roles that matter most: ‘Senior Dairy Cattle Farm Worker’ and ‘Dairy Cattle Farm Operator’. The DILA stands out from standard visa programmes and other schemes like the meat industry labour agreement by offering concessions that match dairy businesses’ specific needs.
Farm operators should know about the latest changes to the programme. The Temporary Skilled Migration Income Threshold (TSMIT) in Labour Agreements rose to £70,000 per year on July 1, 2023. The existing concessions stay at their current levels – to name just one example, Category 3 positions can still access earnings at 90% of the TSMIT requirement. Regional opportunities have grown substantially. The SA Regional Designated Area Migration Agreement (DAMA) now includes 128 more occupations in sectors of all types and has increased its yearly nomination ceiling from 750 to 2000 places.
This piece walks you through the Dairy Industry Labour Agreement’s key aspects. You’ll learn about eligibility requirements, employer obligations and how to apply. The information here helps both new sponsors and those who want to understand the policy updates. This guide gives dairy farm owners a clear path to building their team through this staffing solution.
Government Introduces Dairy Industry Labour Agreement
The Australian Government created the Dairy Industry Labour Agreement (DILA) in 2019 to tackle workforce shortages in the dairy sector. This programme helps Australian businesses find skilled workers when they can’t hire locally.
What is a labour agreement?
Australian employers and the Government create these formal contracts together. Businesses can sponsor skilled overseas workers through these specialised contracts when they just need workers and can’t find them in Australia’s workforce. Standard visa programmes don’t work in these situations.
These agreements last five years and let employers sponsor workers through these visa options:
- Skills in Demand (SID) visa (subclass 482)
- Employer Nomination Scheme visa (subclass 186)
- Skilled Employer Sponsored Regional (Provisional) visa (subclass 494)
Labour agreements are the only way to bring in semi-skilled workers. The system has five different types: Company Specific labour agreements, Designated Area Migration Agreements (DAMA), Global Talent Employer Sponsored agreements, Industry labour agreements, and Project agreements.
How DILA fits into Australia’s migration framework
DILA works as an Industry Labour Agreement—one of ten agreements that exist among other sectors like aged care, meat, fishing, and horticulture. Industry agreements come with fixed terms and conditions that can’t be changed, unlike Company Specific agreements.
The dairy sector’s input and proof of ongoing worker shortages led to DILA’s development. Dairy Australia explains that this template agreement means “individual employers don’t have to negotiate an agreement from scratch, including defining the type of worker sought”. The programme recognises dairy positions as skilled jobs, making them eligible for skilled migration.
Regional businesses got new concessions for several industry labour agreements since November 1, 2021. These changes help them find workers especially when they have critical skills shortages.
Who can apply for a DILA?
Australian dairy farmers can apply for a DILA if they meet certain requirements. They must prioritise hiring Australians first. The Department wants proof that farmers tried to fill jobs locally over the last 12 months—this is called labour market testing.
Dairy employers need to submit the Labour Agreement Request Form through the Department’s ImmiAccount online portal. The labour agreement application is free, but later stages like nomination come with costs.
DILA lets dairy farmers sponsor overseas workers for specific roles. These positions count as skilled jobs even without Australian and New Zealand Standard Classification of Occupations (ANZSCO) codes. Overseas workers must get the same pay and conditions as Australians in similar roles.
The Department doesn’t set limits on how many overseas workers a dairy farm can hire. They know that percentage-based limits don’t work well for small farms with few staff. Notwithstanding that, the guideline states that “overseas workers hired under a labour agreement must be employed on the same pay, terms and conditions as an Australian working in the same job in your area”.
Visa Options Available Under the DILA
Australian dairy farmers can access three different visa pathways to sponsor skilled overseas workers through the Dairy Industry Labour Agreement. Each pathway offers unique benefits based on the employer’s location and staffing requirements.
Temporary Skill Shortage visa (subclass 482)
Dairy farmers use the TSS visa as their go-to option to fill immediate workforce gaps. Employers can sponsor overseas workers for one to four years. The whole visa process takes about 4-6 months.
The Skills in Demand (SID) visa (Subclass 482) replaced the TSS visa on December 7, 2024. The Dairy Industry Labour Agreement remains the best choice for the dairy sector, and its structure stays mostly the same.
This visa comes with these costs:
- Nomination fee
- Skilling Australia Fund Levy
- Standard Business Sponsorship fee
The TSS visa doesn’t have any age restrictions. Workers must show they can speak English well and have worked 1-3 years in dairy farming.
Skilled Employer Sponsored Regional visa (subclass 494)
The SESR visa gives regional employers a five-year provisional pathway. Dairy businesses can use this option to fill labour gaps in regional areas where they can’t find Australian workers.
This visa’s biggest advantage is its path to permanent residence. Visa holders can apply for permanent residency after working in a regional area for three years.
Small businesses with less than AUD 15.29 million turnover pay AUD 4586.97 for the SESR visa. Larger businesses pay AUD 7644.95. Northern Territory employers must get certification from the regional certifying body for their nomination to succeed.
Employer Nomination Scheme visa (subclass 186)
The ENS visa leads straight to permanent residency in Australia after a three-year transition period. Skilled workers nominated by dairy employers can live and work in Australia forever.
Applicants must meet these requirements:
- Be under 45 when applying, with some exceptions
- Score at least 5 in IELTS overall and 4.5 in each part
- Have their job listed on the Core Skills Occupation List
- Show three years of relevant work experience
The main applicant pays AUD 4,910, plus extra fees for family members. Visa holders can travel in and out of Australia for five years before they need a Resident Return visa.
Age limits change based on location. Standard age rules apply in Category 1 regional areas. Applicants in Category 2 and 3 regional areas must be under 55 when they apply.
These three DILA visa pathways give dairy employers flexibility to handle both immediate staff shortages and long-term hiring needs in regional areas of all sizes.
What Occupations Are Covered Under the DILA?
The Dairy Industry Labour Agreement (DILA) recognises two specific occupations that Australian dairy farmers can sponsor. These positions help fill the most important workforce gaps in the dairy sector. Recent data shows 48% of dairy farmers struggle to recruit skilled staff.
Senior Dairy Cattle Farm Worker: Key responsibilities
The Senior Dairy Cattle Farm Worker role matches ANZSCO Skill Level 3 and typically fits the Pastoral Award classification of FLH7 (senior dairy operator grade 1). This position coordinates farm processes and areas of expertise.
The main responsibilities include:
- Planning milk production processes and coordinating milking shed routines
- Implementing reproductive programmes, including artificial insemination and herd fertility management
- Conducting unsupervised internal assessments during calving to minimise still births
- Managing pastures and developing livestock feeding plans
- Supervising animal health programmes and staff performance
- Operating sophisticated dairy equipment and maintaining quality assurance procedures
Applicants must have either an AQF Certificate III (or equivalent) with at least two years of recent, relevant experience or three years of recent, relevant experience without formal qualifications. Note that “recent” refers to the last few years, and “relevant” specifically means dairy farm experience.
Dairy Cattle Farm Operator: Core duties
The Dairy Cattle Farm Operator position matches ANZSCO Skill Level 4, equivalent to FLH3 (Dairy operator Grade 1B) or FLH5 (Dairy operator grade 2) under the Pastoral Award. This role focuses on executing set procedures rather than management tasks.
The core duties involve operating milking plants and equipment, identifying equipment issues, working with teams, and reading/recording instrument information like milk vat temperatures. On top of that, operators maintain machinery, solve problems within guidelines, operate computerised systems, and often work independently.
The qualification requirements are simpler than those for Senior Workers. Applicants need either an AQF Certificate II or III (or equivalent) or at least one year of recent and relevant experience for TSS visas. SESR visas require two years of experience.
Why these roles are vital to the dairy sector
The dairy industry faces growing workforce challenges. Survey data reveals 86% of dairy farms now employ staff—a 33% increase since 2007. The data shows 12% of farms have more than seven employees, and this number could reach 20% by 2025.
Unlike sectors such as horticulture, dairy farming needs higher skill levels because of the complex capabilities required in modern dairy systems. The industry needs over 170 skills across 11 areas, including specialised knowledge in animal handling and operating complex machinery.
These roles support an industry that employs about 46,200 people directly on farms and in dairy companies. The DILA provides a targeted solution for a sector that creates significant employment across regional Australia.
What Are the Requirements for Sponsored Workers?
The DILA’s eligibility criteria for overseas workers cover language skills, qualifications, and compliance with Australian standards. These requirements help ensure sponsored workers have the skills to work effectively in dairy operations.
English language proficiency standards
Workers from overseas must show they can speak English well through recognised tests. TSS visa applicants in Category 1 areas need an IELTS score of 5.0 overall and at least 4.0 in each component. The rules are slightly different for Category 2 and 3 areas – you still need 5.0 overall but there’s no minimum score for individual components. The bar is set higher for permanent visas, with ENS visas requiring a minimum IELTS score of 5.0 overall and 4.5 in each component.
You can also meet the English requirements if you’ve studied in English-speaking schools for at least five years.
Skills, qualifications, and experience needed
Each position has different requirements. Senior Dairy Cattle Farm Workers should have either an AQF Certificate III plus two years of recent relevant experience, or three years of relevant experience without formal qualifications.
Dairy Cattle Farm Operators face lower requirements. They need either an AQF Certificate II/III or one year of recent experience for TSS visas. SESR visas require two years of experience.
It’s worth mentioning that “recent” means experience from the last few years, while “relevant” specifically means dairy farming experience.
Age and salary thresholds explained
Age limits vary based on visa type and location. ENS visa applicants in Category 1 areas must be under 45 years. This limit goes up to 55 years in Category 2 and 3 areas.
The salary requirements are straightforward. Workers must earn at least the Temporary Skilled Migration Income Threshold (TSMIT) of AUD 107,029.32 as of July 2023. Regional locations offer some flexibility, requiring only 90% of TSMIT.
Workplace safety and compliance expectations
Australian workplace laws protect all sponsored workers equally. The Pastoral Award 2020 ensures proper overtime and penalty rates. Workplace Health and Safety rules apply to all workers, regardless of their origin.
What Are the Employer Obligations Under the DILA?
Dairy Industry Labour Agreement sponsors must meet specific obligations to comply with Australian legislation. These rules protect overseas workers and help maintain the programme’s integrity.
Full-time employment and National Employment Standards
Sponsors can only hire skilled overseas workers for full-time positions. Australian National Employment Standards (NES) protect all sponsored employees and include 12 basic employment rights. Workers receive benefits like maximum weekly hours, leave entitlements, and public holiday provisions. When contracts include overtime hours, employers still need to follow all NES requirements.
Record-keeping and reporting duties
Dairy employers need to keep complete employment records for seven years. The records should contain employee information, work hours, payment details, leave tracking, and termination data. The Department requires regular reports from employers within 30 days of making a request. These reports show details about sponsored workers and how well employers follow agreement terms.
How to maintain compliance with immigration law
Employers must follow workplace laws, migration legislation, and immigration regulations. The Department has authority to conduct audits anytime to check compliance. Businesses need to help with these audits and provide requested information. Tax file numbers might be collected to match data with the ATO, which ensures correct salary payments.
Conclusion
The Dairy Industry Labour Agreement stands as a vital solution to Australian dairy farms’ ongoing workforce challenges. This piece explores how farmers can sponsor overseas talent through this specialised agreement to fill key roles that keep the industry running. Modern dairy farming demands workers with specific expertise in animal handling, reproductive management, and complex equipment operation. The DILA recognises these high-skill requirements.
Dairy farmers can choose from three visa pathways based on their needs and location: the Temporary Skill Shortage (subclass 482), Skilled Employer Sponsored Regional (subclass 494), and Employer Nomination Scheme (subclass 186). Each option has unique benefits that help address immediate labour shortages or create paths to permanent residency for valuable workers.
Sponsoring overseas workers comes with important responsibilities for farm operators. They must provide full-time employment and follow National Employment Standards. Proper record keeping and migration law compliance are essential. All the same, these requirements protect worker welfare and maintain the programme’s integrity.
Recent DILA updates show the government’s dedication to improving the programme, especially with changes to the Temporary Skilled Migration Income Threshold and expanded regional opportunities. Dairy farmers should keep up with these changes to get the most from this agreement.
Australian dairy farming employs thousands in regional areas and remains vital to the economy. The DILA creates a framework that values the industry’s significance and unique workforce requirements. This tailored agreement will continue to play a vital role as farms need access to skilled talent for sustainable operations.
FAQs
Q1. What is the Dairy Industry Labour Agreement (DILA) and who can apply for it? The DILA is a specialised agreement that allows Australian dairy farmers to sponsor skilled overseas workers to address labour shortages. Any Australian dairy farmer can apply for a DILA, provided they can demonstrate attempts to fill vacancies from the Australian labour pool over the previous 12 months.
Q2. What visa options are available under the DILA? The DILA offers three visa pathways: the Temporary Skill Shortage visa (subclass 482), the Skilled Employer Sponsored Regional visa (subclass 494), and the Employer Nomination Scheme visa (subclass 186). Each option caters to different employer needs and locations.
Q3. What occupations are covered by the DILA? The DILA covers two specific occupations: Senior Dairy Cattle Farm Worker and Dairy Cattle Farm Operator. These roles involve various responsibilities, from coordinating farm processes to operating milking equipment and managing animal health.
Q4. What are the English language requirements for workers under the DILA? English language requirements vary depending on the visa type and location. Generally, workers need to achieve an IELTS score of 5.0 overall, with minimum component scores ranging from 4.0 to 4.5, depending on the specific visa and regional category.
Q5. What are the main obligations for employers under the DILA? Employers must provide full-time employment, comply with National Employment Standards, maintain comprehensive employment records for at least seven years, and adhere to all relevant workplace laws and migration legislation. They must also cooperate with any audits conducted by the Department.