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Subclass 494

Additional Requirements for Labour Agreement Stream Nominations – SESR Visa Subclass 494

The Skilled Employer Sponsored Regional (SESR) visa (Subclass 494) Labour Agreement stream has strict extra rules. Employers must meet occupation, LMT, nomination ceiling and SAF levy requirements to ensure compliant and successful nominations.

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Employers sponsoring workers under the Labour Agreement (LA) stream of the Skilled Employer Sponsored Regional (SESR) visa subclass 494 must satisfy all of the general nomination requirements covered earlier, plus a number of additional obligations that are specific to this stream. Here is a straightforward breakdown of what those extra requirements involve.

The Nominated Occupation Must Be Specified in the Labour Agreement

The first and most fundamental additional requirement is that the occupation being nominated must be explicitly listed in the executed labour agreement as one that the sponsor is permitted to nominate. This is not a discretionary check — if the occupation does not appear in the agreement, the nomination cannot proceed. Decision makers are required to verify this against the terms of the signed agreement as well as the relevant system information.

Additional Labour Agreement Requirements Must Be Met

Beyond the occupation check, any other specific requirements set out in the labour agreement itself must also be satisfied before the nomination can be approved. Labour agreements are individually negotiated, which means the conditions can vary from one agreement to another. Decision makers are responsible for reviewing both the system records and the specific terms of each agreement to confirm that all conditions have been met.

When it comes to Labour Market Testing (LMT), the same requirements that apply to other SESR streams generally apply to the LA stream as well, unless the agreement states otherwise. For employers operating under a Designated Area Migration Agreement (DAMA), the LMT requirements are the same as those for standalone labour agreements.

However, there are some important distinctions for Category 2 and Category 3 regions under DAMA arrangements. In these cases, LMT must demonstrate at least two genuine attempts to recruit Australian workers, and the advertising must have taken place within the 12 months before the nomination is lodged — rather than the standard four-month window that applies to other nominations.

For Category 3 regions specifically, there is some added flexibility around how LMT evidence can be provided. Sponsors in these regions may satisfy the requirement with:

  • One advertisement with national reach, and
  • One local advertisement — such as on the company's own website or through local media

While Workforce Australia is recommended as an advertising platform in these cases, it is not mandatory.

Nomination Ceilings Must Not Be Exceeded

Another requirement unique to the LA stream is that the total number of approved nominations for a particular occupation cannot exceed the occupation-specific ceiling set out in the labour agreement. In other words, each labour agreement places a cap on how many workers can be nominated in each occupation for any given period, and that cap must not be breached.

In practice, system controls are generally in place to prevent this from happening automatically, but decision makers are still required to verify manually that the ceiling has not been reached before approving any nomination.

Fahad Shamim - Migration & Education Consultant

Fahad Shamim

Migration & Education Consultant

MARA Registered MARN 2619225
QEAC G12906

As a Migration & Education Consultant, I provide expert guidance on Australian visas and international education, helping clients navigate both with ease.

Phone +61 424 295 050
Email fahad@edvisehub.com

Changing Employers or Occupations on an SESR Visa

One area that often causes confusion for existing SESR visa holders is what happens when they want to change employers or move into a different occupation. The rules here are important to understand clearly, as getting it wrong can have serious consequences.

Changing employers is permitted without the need to apply for a brand-new SESR visa — provided the current visa is not close to expiring. However, a new nomination from the new employer must be lodged and approved before the visa holder can begin working for them, unless they work in an occupation that is classified as exempt under the relevant legislative instrument.

For visa holders in exempt occupations, the rules are slightly more flexible:

  • They may work for multiple employers in the same occupation simultaneously
  • They do not need a new nomination each time they change employers, as long as they continue working in the same occupation and their visa remains valid

Changing occupations is a different matter entirely. Regardless of whether the employer stays the same or changes, an SESR visa holder cannot move into a different occupation without first having a new nomination approved and being granted a new SESR visa. Starting work in a new occupation before this process is completed is a breach of visa condition 8608 and can have serious implications — including potentially affecting a future application for the Subclass 191 Permanent Residence visa.

The SAF Levy When Changing Employers or Occupations

Whenever a new nomination is required — whether due to a change of employer or a change of occupation — a new Skilling Australians Fund (SAF) levy must also be paid at the time the nomination is lodged. The amount payable may be reduced depending on how many years of the original visa have already elapsed.

The formula used to calculate the levy in these circumstances is:

Base amount (AUD $3,000 or $5,000) × ((5 − elapsed visa years) ÷ 5)

The base amount depends on the size of the sponsoring business, with the higher amount applying to larger businesses. This formula effectively means that the longer the visa holder has already been in Australia on their current SESR visa, the lower the SAF levy will be for the new nomination.

It is absolutely critical to remember that the visa holder must not commence work with the new employer until the new nomination has been formally approved. Starting work before that point constitutes a breach of visa condition 8608, and any such breach may be taken into account when assessing a future Subclass 191 permanent residency application.

Final Thoughts

Understanding the full nomination process for the Skilled Employer Sponsored Regional (SESR) visa subclass 494 — from sponsorship and genuine position requirements through to Labour Market Testing, employment contracts, and SAF levy obligations — is essential for both employers and prospective visa holders. Each step carries its own specific rules, and overlooking even one detail can lead to unnecessary delays or refusals. Whether you are lodging your first nomination or managing an existing sponsored worker's change of employer or occupation, seeking guidance from a registered migration agent or immigration lawyer will give you the best possible chance of a smooth and successful outcome.

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