Labour Market Testing (LMT)

Overview

Labour market testing (LMT) involves advertising the nominated position in Australia. The purpose of the LMT is to show the Department of Home Affairs (DoHA) that you cannot find a suitable Australian citizen or permanent resident worker.

Labour Market Testing requirements will depend on which visa stream you are nominating under.

Labour Market Testing for Temporary Skilled Shortage visa (Subclass 482) and Skilled Employer-Sponsored Regional (Subclass 494)

LMT is required for Subclass 482 Temporary Skill Shortage visa (TSS) and Subclass 494 Skilled Employer-Sponsored Regional (Provisional) visa.

Sponsors must provide a copy of the advertising material used to advertise the position (that is, a copy of the two advertisements that meet our requirements) when you nominate an applicant.

The Labour Market Testing requirements for most nominations must be done

  • within the 4 months immediately before lodging a nomination application,

  • if within 4 months before lodging the nomination application, and if the sponsor or an associated entity has made any Australian citizen or permanent resident workers redundant or retrenched them from positions in the nominated occupation, the advertising must have occurred since the date that these events occurred. Note: when this occurs, information about these redundancies or retrenchments must also be provided.

 Advertising of the nominated position must meet all of the below:

  • the advertisement was in Australia, in English and included the following information:

    • the title, or a description, of the position. Note: multiple positions in one advertisement are 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; and

    • the salary for the position – if the annual earnings for the position are lower than AUD96,400. Note: it is acceptable to publish a salary range (for example, AUD $80,000 to AUD $90,000).

  • at least 2 advertisements were published:

    • One advertisement must be on the Australian Governments Jobactive website.

    • The other on a prominent or professional recruitment website with national reach (for example, Seek, Indeed, Jora) that publishes advertisements for positions throughout Australia.

      • Industry-specific recruitment websites relevant to the occupation that are insignificant 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 a national reach; or

    • on the business's 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.

Note:

  • the nominated position may be advertised in the same medium (such as newspaper advertisements, on two separate occasions) or in any two different mediums simultaneously, or on two separate occasions

  • advertising may have been undertaken by a third party if authorised to do so by the sponsor (for example, an associated entity or a contracted party, such as a recruitment agency) – there is no requirement that the sponsor placed the advertisement themselves.

 Requirements for nominations lodged on or after 1 October 2020

In September 2020, the Australian Government introduced new labour market testing measures for employer-sponsored applications. 

In addition to the 2 advertisements mentioned above:

  • the nominated position must be advertised on the Government’s jobactive website

  • the jobactive advertisement must have included all of the information required to be included in the other 2 advertisements mentioned above

  • jobactive advertisements 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

Note: advertising may have been undertaken by a third party if authorised to do so by the sponsor (for example, an associated entity or a contracted party, such as a recruitment agency) - there is no requirement that the sponsor placed the advertisement themselves

Evidence of a total of 3 advertisements, including an advertisement published on the Government’s jobactive website, must be provided at the time the nomination is lodged.

 Exemptions

  • Occupation-based exemptions

Occupation-based exemptions for LMT which were previously available under the Temporary Work (Skilled) visa (subclass 457), are not available under the TSS visa (subclass 482) and the Skilled Employer-Sponsored Regional (Provisional) visa (subclass 494) programs.

There are currently no instruments in place which provide any other exemptions, for example:

  • for specific occupations;

  • on the basis of the skill level of a group of occupations (for example, ANZSCO skill level 1 or 2); or

  • due to a major disaster.

  • International trade obligations (ITOs)

    LMT is not required where it would conflict with Australia's ITOs, in any of the following circumstances:

  • the worker you nominate is a citizen/national of China, Japan, Mexico, Thailand, or Vietnam, or is a citizen/national/permanent resident of Canada, Chile, South Korea, New Zealand, or Singapore

  • 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 or New Zealand

  • 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 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 eligible permanent resident* 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.

Note: the above ITO exemptions do not apply for nominations lodged under a labour agreement and the Skilled Employer-Sponsored Regional (Provisional) visa (subclass 494).

*eligible permanent residents in this circumstance include permanent residents of Armenia, Canada, New Zealand, or Switzerland.

 For the purposes of ITOs, the following occupations are considered to be Executives or Senior Managers.

  • Advertising Manager ANZSCO 131113

  • Chief Executive or Managing Director ANZSCO 111111

  • Chief Information Officer 135111

  • Corporate General Manager 111211

  • Finance Manager 132211

  • Human Resources Manager 132311

  • Sales & Marketing Manager 131112

  • Supply and Distribution Manager 133611

  • Corporate services manager

Alternative requirements 

  • Alternative requirements apply where the nominated occupation/position is one which:

  • Requires the occupant to have an internationally recognised record of exceptional and outstanding achievement in a profession or a field (such as a sport, academia, and research, or as a top-talent chef).

  • Is held by an existing TSS or subclass 457 visa holder for whom a new nomination has been lodged solely because:

    • the annual earnings that will apply to the nominee have changed or

    • A change in business structure has resulted in the nominee’s employer lodging a new application to be approved as a standard business sponsor.

  • Relating to an intra corporate transfer (ICT).

  • For which the annual earnings will be equal to or greater than AUD250,000.

  • within ANZSCO Minor Group 253 – Medical Practitioners (except General Practitioner (ANZSCO 253111) and Medical Practitioners NEC (ANZSCO 253999)) or ANZSCO Unit Group 4111 – Ambulance Officers and Paramedics.

Note: an intra-corporate transfer is the transfer of an existing employee of a company to another branch or an associated entity of that company operating in Australia.

Does the four-week LMT advertising need to be consecutive?

No. This is not required. For example, the requirement will be satisfied if advertising was conducted for an initial period of two weeks, which was then paused for three weeks, and then recommenced for a further two weeks (i.e. a total of four weeks advertising campaign with a three-week gap in the middle).

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