Labour Market Testing (LMT)

For Subclass 482 and Subclass 494, the nominating employer must show the Department of Home Affairs that you can not find a suitably qualified and experience Australian worker for the position being nominated. For this the nominating business is required to conduct labour market test.

Overview of LMT Requirements

Labour Market Testing generally involves advertising the position being nominated. How and when you conduct the labour market testing depends on the stream you are applying under.

Occupation Based LMT Exemptions

Occupation based exemptions are not available for Temporary Skill Shortage visa subclass 482 and the Skilled Employer Sponsored Regional (Provisional) visa subclass 494 programs. There are currently no federal instruments in place which provide for exemptions based on:

• For specific occupations;
• On the basis of the skill level of group of occupations (for example, ANZSCO skill level 1 or 2); or
• Due to a major disaster.

These exemptions were previously available for Temporary Work (Skilled) visa subclass 457.

LMT Exemptions based on International Trade Obligations (ITOs)

Labour Market Testing is not required for visa subclass 482 and visa subclass 494, where it would conflict with Australia's ITOs, in any of the following circumstances:

• The worker you nominate is a citizen or national of Brunei, China, Japan, Malaysia, Mexico, Peru, Thailand, Vietnam or is a citizen/national/permanent resident of Canada, Chile, South Korea, New Zealand, Singapore or the United Kingdom.
• the worker you nominate is a current employee of a business that is an associated entity of your business, and the associated entity is located in an Association of South-East Asian Nations (ASEAN) country (Brunei, Myanmar, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand or Vietnam), Canada, Chile, China, Japan, Mexico, South Korea, United Kingdom, New Zealand, Peru, Samoa, Tuvalu, Kiribati, Tonga, Solomon Islands, Niue, the Cook Islands or Vanuatu.
• The worker you nominate is a current employee of an associated entity of your business and that associated entity operates in a country that is a member of the World Trade Organisation (WTO), and the nominated occupation is an Executive or Senior Manager occupation for the purposes of ITOs and the nominee will be responsible for the entire or a substantial part of your company's operations in Australia.
• your business currently operates in a WTO member country or territory, or Tuvalu, Kiribati, Niue, or the Cook Islands, and is seeking to set up a business in Australia, and the nominated occupation is an Executive or Senior Manager occupation for the purposes of ITOs.
• The worker you nominate is a citizen or an permanent resident (Armenia, Canada, New Zealand or Switzerland) of a WTO member country or territory and has worked for you in the nominated position in Australia on a full time basis for the last two years.

For the purposes of International Trade Obligations, the following occupations are considered to be Executives or Senior Managers:

• ANZSCO 131113 - Advertising Manager
• ANZSCO 111111 - Chief Executive or Managing Director
• ANZSCO 135111 - Chief Information Officer
• ANZSCO 111211 - Corporate General Manager
• ANZSCO 132111 - Corporate Services Manager
• ANZSCO 132211 - Finance Manager
• ANZSCO 132311 - Human Resource Manager
• ANZSCO 131112 - Sales & Marketing Manager
• ANZSCO 133611 - Supply and Distribution Manager

Australia's International Trade Obligations

The following international trade obligations are currently in place:

• Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA);
• Australia-Chile Free Trade Agreement (ACl-FTA);
• Australia-United Kingdom Free Trade Agreement (AUKFTA);
• China-Australia Free Trade Agreement (ChAFTA).
• Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP);
• Comprehensive Economic Partnership Agreement between Australia and the United Arab Emirates (CEPA);
• Free Trade Agreement between Australia and Hong Kong, China (A‑HKFTA);
• General Agreement on Trade in Services at Annex 1B to the Marrakesh Agreement Establishing the World Trade Organization (GATS);
• India-Australia Economic Cooperation and Trade Agreement (IAECTA);
• Indonesia-Australia Comprehensive Economic Partnership Agreement (IA‑CEPA);
• Japan-Australia Economic Partnership Agreement (JAEPA);
• Korea-Australia Free Trade Agreement (KAFTA);
• Malaysia-Australia Free Trade Agreement (MAFTA);
• Pacific Agreement on Closer Economic Relations Plus (PACER Plus);
• Peru-Australia Free Trade Agreement (PAFTA);
• Protocol on Trade in Services to the Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA);
• Regional Comprehensive Economic Partnership Agreement (RCEP);
• Singapore-Australia Free Trade Agreement (SAFTA);
• Thailand-Australia Free Trade Agreement (TAFTA).

When sponsors nominate an applicant for TSS subclass 482 visa they must provide copy of all advertising materials used to advertise the position. For most tss subclass 482 nominations:

• The position must have been advertised for at least four weeks within the last four month period immediately prior to lodging the subclass 482 nomination application. If an Australian citizen or permanent resident worker has been made redundant or retrenched from the nominated occupation within last 4 months before lodging the subclass 482 nomination application, the advertising must have occurred since the date of that redundancy or retrenchment.
• Applications or expressions of interest for the advertised position must have been accepted for at least 4 weeks.

Labour Market Testing Advertisement Requirements

For LMT, the advertisements are in Australia, in English and includes the following information:

• The title, or a description, of the position (multiple positions in one advertisement is acceptable).
• The skills or experience required for the position.
• The name of the approved sponsor or the name of the recruitment agency being used by the sponsor.
• The salary for the position (if the annual earnings for the position are lower than A$96,400). It is acceptable to publish a salary range (for example, A$80,000 to A$90,000).

For LMT 482 visa, at least 2 advertisements were published in any of the below:

• On a prominent or professional recruitment website with national reach that publishes advertisements for positions throughout Australia (Industry specific recruitment websites relevant to the occupation that are in significant use by the industry are an acceptable method of LMT advertising, a general classifieds website or an advertisement solely through social media notification such as Twitter or Instagram are not acceptable methods. LinkedIn's online recruitment platform is acceptable for LMT purposes. Job vacancies restricted to LinkedIn profile members only are not acceptable for LMT purposes.)
• In national print media (that is, newspapers or magazines with national reach that are published at least monthly and marketed throughout Australia).
• On national radio with national reach.
• On the business' website if the sponsor is an accredited sponsor.
• Advertisements, including on websites, are expected to have run for at least 4 weeks.
• Applications or expressions of interest for the advertised position must have been accepted for at least 4 weeks.

You do not need labour Market testing for Subclass 186 visa. However you might want to do it to prove that the position is genuine and nominating business's commitment to preference to hire local labour.

Nominating business must provide Labour Market Testing proof when requesting a labour agreement. Where the labour agreement specifies, you must also provide proof of LMT when you nominate an applicant. LMT is not required where a Minister of Religion Labour Agreement (MoRLA) is being sought.

Why do i have to comply with Labour Market Testing criteria?

Labour Market Testing ensures that overseas workers are not given preference over Australian workers.

Annual Market Salary Rate

Under annual market salary rate criteria for Subclass 482 visa and Subclass 494 visa the nominating employer must show the Department of Home Affairs that it will pay the nominee same salary as it would pay to any other Australian citizen or permanent resident worker.

Labour Market Testing

Labour Market Testing ensures that overseas workers are not given preference over Australian workers.