Labour Market Testing (LMT) is an important part of Australia’s skilled employer-sponsored visa process. It involves advertising job vacancies in Australia to show that the employer has tried to hire an Australian citizen or permanent resident before nominating an overseas worker.
For sponsors seeking approval for nominating an applicant under the Skills in Demand visa (subclass 482) or the Skilled Employer Sponsored Regional visa (subclass 494), compliance requirements for LMT are scrutinised. If there is an error in a job advertisement, missed timing, or missing evidence, the Department may refuse the nomination. For this reason, understanding LMT requirements is essential.
What Is Labour Market Testing (LMT)?
Labour Market Testing (LMT) is a requirement where employers need to show the Department of Home Affairs that they could not find a suitable local worker for the nominated position. The employer must advertise the nominated occupation for a minimum of four consecutive weeks on approved platforms, such as Workforce Australia and other national job boards.
Why Labour Market Testing Is Required
LMT helps protect job opportunities for Australian citizens and permanent residents by making sure they are given the first chance to apply for roles.
Visas That Require Labour Market Testing
- Skills in Demand (SID) visa (subclass 482)
This visa requires an LMT when a standard business sponsor cannot find an appropriately skilled local worker for the position. - Skilled Employer Sponsored Regional visa (subclass 494)
This visa allows regional employers to sponsor skilled workers and address labour shortages within the region. LMT is mandatory for regional nominations to prove that no appropriately skilled Australian worker was available for a particular position.
When Is Labour Market Testing Required?
LMT must be completed for subclass 482 and 494 visas before you submit the nomination, unless an exemption applies.
Timing Requirements for LMT
The nominated position must be advertised for at least 28 days within the four months before you lodge the nomination.
Who Must Undertake LMT
What Must Be Included in Labour Market Testing Advertisements?
Even if the labour market testing advertisements are for multiple positions, each advertisement must include the following details:
Mandatory Job Advertisement Details
- The name of the sponsor (employer)
- The job title and description
- The salary range (if annual earnings are less than AUD 96,400)
- The skill sets and experience necessary for the job roles
- The job location
- How to apply, and the application closing date
Where Job Ads Must Be Posted
- Workforce Australia
- SEEK
- Indeed
- National radio
- National print media
- On the official website, if the business is an accredited sponsor
- Industry-specific job boards that have a national audience
An advertisement placed internally, or through a social media notification, is not enough. Also, LinkedIn’s online recruitment platform is acceptable for LMT, but job vacancies restricted to LinkedIn profile members are unacceptable for LMT requirements.
Minimum Advertising Period
You must place at least two advertisements for the position on national platforms, each live for a minimum of 28 days, within four months before you lodge the nomination.
[free_consultation]
Book a Consultation
If you are interested in getting more information about a visa, get in touch with Australian Migration Agents for a consultation.
[/free_consultation]
Labour Market Testing Exemptions
LMT exemptions may apply in some cases, such as:
- Transferring from a company operating overseas to an Australian entity
- International Trade Obligations (ITO) apply
- Exceptional talent in sports, research, academia, or a top-talent chef with an internationally recognised record
- Medical practitioners NEC (not elsewhere classified), general medical practitioners, paramedics, and ambulance officers
- Disaster relief/recovery efforts
- Existing visa holders
- Changes in business structure or nominee’s earnings
International Trade Obligations (ITO) and LMT
Some international trade agreements may mean that LMT is not required in certain cases:
What Are International Trade Obligations?
International trade obligations are rules, commitments, or legalities that bind countries to follow the WTO and free trade agreements to ensure fair cross-border exchange of goods and services and encourage global commerce.
Occupations and Workers Exempt Under ITOs
- A citizen of a World Trade Organisation (WTO) member country who has worked full-time in Australia in the nominated position up until the nomination lodgement
- An individual who holds citizenship or national identity of Vietnam, Japan, China, Mexico, or the UK
- The individual is a permanent resident or citizen of Chile, Canada, South Korea, Singapore, or New Zealand.
- The nominated individual is a current employee in a company that is an associated entity of your business in an Association of South-East Asian Nations (ASEAN) country (Brunei, Myanmar, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand, or Vietnam). Canada, Chile, China, Japan, Mexico, South Korea, and New Zealand also come on this list.
- Senior managers who are existing employees in a company in a WTO member country and have been through an intra-corporate transfer.
- Senior managers who handle at least a substantial amount of the company's operations and the expansion of new operations in Australia.
- Senior managers for intra-company transfers from Malaysia, the Philippines, Singapore, Thailand, Vietnam, Indonesia, Cambodia, Laos, Brunei, and Myanmar are exempt from LMT.
Senior Management Exemption from Labour Market Testing
A senior manager occupation involves more strategic oversight than operational duties and may be exempt from LMT.
What Is a Senior or Executive Manager?
A senior or executive manager is a high-level leader, generally responsible for strategic decision-making and aligning organisational goals with business objectives.
Eligible Senior Management Occupations
- Advertising Manager
- Chief Executive or Managing Director
- Chief Information Officer
- Corporate General Manager
- Corporate Services Manager
- Finance Manager
- Human Resource Manager
- Sales & Marketing Manager
- Supply and Distribution Manager
What Is an Associated Entity?
Under Section 50AAA of the Corporations Act, defines an associated entity as a closely connected business or an organisation. This connection may exist where:
- One entity controls another
- One business’s resources, operations, or affairs have a major impact on another
- It can include related corporate bodies where one business controls or owns assets or investments of another
Common Labour Market Testing Mistakes Employers Make
The following circumstances may cause LMT failures:
- Incorrect job advertisements
- Mismatched or insufficient nominated occupation details
- Expired ads
- Missing salary range
- Lack of evidence
- Informal channels
How Migration Agents Can Help Employers
Australian Migration Agents is a registered team well-versed in LMT obligations, exemptions, and compliant advertising. Book a consultation to receive guidance on preparing nomination-ready documentation in line with Australian immigration requirements.
FAQ About Labour Market Testing
Is Labour Market Testing Mandatory for All 482 Visa Nominations?
Yes, LMT is mandatory for all 482 visa nominations unless there’s a valid exemption.
How Long Must Job Advertisements Be Live for LMT Compliance?
Job advertisements should be live for at least 4 weeks (28 days).
Can Labour Market Testing Be Reused for Multiple Nominations?
No, as LMT is position-specific.
What Happens If Labour Market Testing Requirements Are Not Met?
If LMT requirements are not met, the nomination may be refused.
Are Senior Managers Exempt From Labour Market Testing?
A senior manager occupation may qualify for the LMT exemption if the stipulated criteria are satisfied.
[registered_migration_agents] [/registered_migration_agents]
%20A%20Guide%20to%20Top%20Jobs%20%26%20Visa%20Trends.webp)
.png)