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Introducing the New Aged Care Labour Agreement

As an Australian aged care provider, you should be aware of the recent legal changes allowing you to sponsor workers. From 5 May 2023, Australian aged care providers can request an Aged Care Labour Agreement to recruit and sponsor experienced direct care workers in the following occupations:

  • Nursing Support Worker (Assistant in Nursing) (ANZSCO 423312);
  • Personal Care Assistant (Personal Care Worker) (ANZSCO 423313); and
  • Aged or Disabled Carer (ANZSCO 423111).

Employers can sponsor overseas workers on the following visas:

  • Temporary Skill Shortage visa (TSS) (subclass 482) for up to 4 years; and
  • Employer Nomination Scheme (ENS) visa (subclass 186) after a two-year transition period.

This article will explore the new Aged Care Labour Agreement option for aged care providers.

Why is the Aged Care Labour Agreement Necessary?

The Australian Government’s Department of Home Affairs (DOHA) has recognised the acute skills shortage in this area and the ineffectiveness of previous migration programs in addressing the challenges faced by the aged care industry. Mounting pressure from stakeholders, businesses, and employers across the aged care sector has resulted in the introduction of the Aged Care Labour Agreement (ACLA). 

Before this welcomed change, Australian aged care providers only had two options available if they wanted to sponsor direct care workers in the above ANZSCO occupations. They could:

The above options can be restrictive for some Australian aged care providers. For example, a DAMA labour agreement requires the aged care provider to be in a key designated regional area. 

Likewise, a CSLA can often be onerous, time-consuming and contain limited pre-approved concessions. For instance, under the CSLA, Australian aged care providers had requirements and concessions, including that:

  • providers could only select one ANZSCO occupation, Aged or Disabled Carer (ANZSCO 423111), which included the following positions – Aged or Disability Carer, Aged or Disabled Care Worker, Personal Carer or Personal Care Worker;
  • the duties, tasks and responsibilities of the Aged or Disabled Carer were very specific;
  • the pathway to PR (ENS) was conditional on nominees having been employed for at least three years on a TSS visa;
  • the age concession allowing ENS visa nominees to be up to 55 years old; 
  • a lower English language proficiency requirement equivalent to the short-term stream of the TSS visa with International English Language Testing System (IELTS) component scores of at least 4.5 and an overall IELTS score of at least 5.0;
  • AQF Cert II or III (skill level 4) plus minimum one year experience; and
  • in some instances, relevant experience and/or on-the-job training may be required in addition to the formal qualification.
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Terms and Conditions Under the ACLA

The specific terms and conditions under the ACLA are outlined below.

Memorandum of Understanding

Aged care providers who have entered a Memorandum of Understanding (MOU) with a relevant union will have satisfied the labour marketing testing (LMT) requirements.

Accessing ANZSCO Occupations

Employers can access three ANZSCO occupations:

  • Nursing Support Worker (Assistant in Nursing) (ANZSCO 423312);
  • Personal Care Assistant (Personal Care Worker) (ANZSCO 423313); and
  • Aged or Disabled Carer (ANZSCO 423111).

Subclass 482 Requirements

For subclass 482, overseas workers must have:

  • a relevant AQF Certificate III or equivalent or higher;
  • 12 months of relevant full-time work experience or part-time equivalent; or 
  • a positive skills assessment if the applicant obtained qualification overseas or is claiming work experience in lieu of a relevant qualification.

Subclass 186

For the ENS subclass 186, the overseas workers must have the following:

  • a relevant AQF Certificate III or equivalent or higher;
  • at least two years of full-time work experience in Australia in a relevant direct care occupation. The two years of work experience is not tied to a particular employer or visa subclass;
  • must be under 45 years of age; and
  • an IELTS 5.5 (or equivalent) with no component minimum.

In addition, there are certain conditions on the employment you offer the applicant, including:

  • employment must be on a full-time permanent basis (38 hours per week); and
  • minimum salary of $51,222 AUD (guaranteed annual earnings) or the Australian Market Salary Rate for the position, whichever is higher.

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Benefits of the ACLA

There are several benefits of the ACLA, including:

  • occupations are not assessed under ANZSCO but under the specific concessions of the labour agreement;
  • the two-year pathway to permanent residence through the Employer Nomination Scheme;
  • a streamlined visa nomination and priority visa application processing; and
  • no post-qualification work experience requirement for the subclass 482 visa.

Process in Requesting the ACLA

1. Enter an MOU

The first step for all Australian aged care providers is to enter into an MOU with the relevant union, being the:

Approaching an appropriate union will depend on the occupation and the location of the sponsored workers. 

It is typical to expect a response for the MOU within 10 business days following the initial contact. Following contact, a face-to-face meeting will be organised. Here, you and the union will meet to discuss terms and conditions. This stage will produce an executable MOU, which will allow you to progress to the second step.

2. Submitting a Request

The next step involves submitting a request for an ACLA to the DOHA and providing an extensive business case for why the business requires it.  

It is extremely important to plan ahead for the first two steps of this process. Processing times are currently undetermined so we recommend good preparation beforehand.

3. Submitting Nomination and Visa Applications

Lastly, you must submit the associated nomination and visa application for the sponsored worker. 

Effectiveness of the ACLA

The ACLA has caused some improvement in immigration for aged care workers. Since the first signed ACLA on 15 May 2023, there have been 65 agreements signed as of today, with the most recent commencing on 9 April 2024. As of 26 April 2024, there are also 954 visa applications lodged. The number of HealthCare and Social Assistance visas has increased by 18% to roughly 6,000 from this time last year in the TSS 482 category. However, this does not solely represent aged care, as this statistic is incumbent on all health care and social assistance workers. 

Additionally, Northern Territory, South Australia, Queensland and Tasmania all had the number of aged care visas granted in aged care among their top 15 most granted visas. Whilst from the outset this statistic looks impressive, this equates to an increase of 10 visas in each of the previously stated states and territories.

Overall, the MOU process may have created some issues, as the relationship between some unions and businesses is tenable at best. The 954 visa applications seem to be a drop in the bucket compared to the estimated 11,000 more aged care workers needed. Therefore, whilst the ACLA scheme is an improvement, it still requires further work.

Key Takeaways

The new Aged Care Labour Agreement is designed to address the significant skills shortage of qualified care workers across Australia, streamline their sponsorship and assist aged care providers struggling to service their clients/patients. As Australia’s population continues to age, so will the demand for appropriate aged care facilities and associated care.  

If you would like advice and more information about the Aged Care Labour Agreement, our experienced immigration lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.

Frequently Asked Questions

What is the ACLA?

The Aged Care Labour Agreement is a pathway for aged care providers to recruit and sponsor direct care workers for Nursing Support Worker (Assistant in Nursing) (ANZSCO 423312); Personal Care Assistant (Personal Care Worker) (ANZSCO 423313); and Aged or Disabled Carer (ANZSCO 423111).

What options did aged care providers have for sponsoring foreign workers before the introduction of the ACLA?

Aged care providers could enter into a DAMA labour agreement or request a Company Specific Labour Agreement (CSLA). 

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Kaku Caro

Kaku Caro

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