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Australia Add 3 New Free Trade Agreements – Labour Market Testing Trade Obligations
February 14, 2020

Sponsored skilled workers from Peru, Indonesia and Hong Kong, China who are nominated to apply for Subclass 494 (Skilled Employer-Sponsored Regional (Provisional) Visa) and Subclass 482 (Temporary Skill Shortage Visa) are exempted from Labour Market Testing (LMT) requirement due to international trade obligations.

As of 28th January, the countries mentioned above were introduced to the 2020 Legislative Instrument F2020L0084 LIN 20/029 – Determination of International Trade Obligations Relating to Labour Market (under Subsection 140GBA(2) of the Migration Act 1958). Below is the determination of international trade obligations relating to labour market testing on three new countries:

  • Peru-Australia Free Trade Agreement (PAFTA)
  •  Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA)
  •   Free Trade Agreement between Australia and Hong Kong, China (A‑HKFTA)

By all means, due to International Trade Obligations, sponsored skilled workers from those countries are now exempted from LMT requirement for Subclass 494 visa and Subclass 482 visa. As stated under Subsection 140GBA(1)(c) of the Act;

“The labour market testing condition specified in section 140GBA applies to a nomination by a person if it would not be inconsistent with any international trade obligation of Australia determined under subsection 140GBA(2) to require the person to satisfy the labour market testing condition, in relation to the nominated position.”

Labour Market Testing (LMT) Condition

In some work/skilled work visas, LMT requires an Australian employer to advertise the position in Australia. The employer must provide enough evidence that he/she can’t find a suitable Australian worker for the position. The process of LMT and the required evidence will depend on the nominating stream. 

LMT exempted country/region determined under international trade obligations (as of 13th February 2020)

New Zealand ASEAN-Australia-New Zealand Free Trade Area (AANZFTA)
Chile Australia-Chile Free Trade Agreement (ACl-FTA)
Hong Kong Free Trade Agreement between Australia and Hong Kong, China (A‑HKFTA)
China China-Australia Free Trade Agreement (ChAFTA)
Indonesia Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA)
Japan Japan-Australia Economic Partnership Agreement (JAEPA)
Korea Korea-Australia Free Trade Agreement (KAFTA)
Malaysia Malaysia-Australia Free Trade Agreement (MAFTA)
Peru Peru-Australia Free Trade Agreement (PAFTA)
Singapore Singapore-Australia Free Trade Agreement (SAFTA)
Thailand Thailand-Australia Free Trade Agreement (TAFTA)

If you need help regarding your visa and migration options, feel free to contact us anytime.

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