Australian employers must complete labour market testing when they want to sponsor foreign workers through the TSS/Skills in Demand (subclass 482) and Skilled Employer Sponsored Regional (subclass 494) visas. Your nomination could be refused if you don’t do this testing properly. You might lose government fees and the SAF levy too. The rules became stricter in December 2023. Now employers just need to post exactly two job advertisements for all 482 and 494 nominations.
This detailed guide about labour market testing in Australia covers everything employers should know to show they tried to hire Australian workers first. The Department of Home Affairs wants sponsors to prove they couldn’t find suitable Australian workers for their vacant positions. Employers must run these advertisements in the four months before they submit the visa nomination. The ads need specific details like the employer’s name, position information, and salary details if it’s below $96,400. The rules are strict, but some exemptions exist. These come from Australia’s international trade agreements and apply to citizens from countries like the United Kingdom, Japan, and Singapore.
Government mandates employers test local labour market
The Australian government stands firm on protecting local jobs through mandatory labour market testing (LMT). This policy serves as the life-blood of Australia’s migration system. Employers must prove they’ve looked for local talent before they can recruit from overseas.
Why Labour Market Testing exists
LMT works as a protective measure within Australia’s skilled migration framework. The Department of Home Affairs asks sponsors to prove they can’t find suitable Australian workers to fill specific roles in their organisation. This checkpoint in the visa process makes sure employers give locals a fair chance.
The main goal is to verify that employers have searched thoroughly for Australian talent before looking overseas. LMT protects the Australian labour market and makes sure companies try every possible way to hire locally first. It also helps keep employment practises fair and competitive in industries of all types.
Which visa subclasses require LMT
Right now, LMT is a must for several visa types. The most common ones are:
- Subclass 482 – Temporary Skill Shortage (TSS) visa/Skills in Demand visa
- Subclass 494 – Skilled Employer Sponsored Regional (Provisional) visa
Some Subclass 482 nominations might get exemptions, but all Subclass 494 nominations must meet strict LMT rules. No exceptions exist for the 494 category.
LMT rules don’t apply when they clash with Australia’s international trade commitments, like Free Trade Agreements (FTAs) and the World Trade Organisation (WTO) General Agreement on Trade in Services (GATS). Jobs with yearly earnings of AUD 382,247.56 or more might also skip these testing requirements.
How LMT supports Australian workers
LMT directly helps Australian workers by putting them first for job openings. Australian citizens and permanent residents get the best chance to land these positions before international workers come into the picture.
The government brought in LMT to make sure job openings were available to Australian citizens and permanent residents. Companies could only look for foreign nationals when they couldn’t find locals with the right skills, qualifications, or work experience.
The system stays flexible during tough times without losing its purpose. Sponsors might skip LMT requirements during major disasters in Australia if they’re helping with relief or recovery work. This makes sense when quick action is needed while keeping the system’s core values intact.
LMT hits multiple targets: it keeps local jobs safe, follows migration rules, and maintains strong skilled visa programmes. This process helps the government balance what the economy needs while supporting local job opportunities.
Employers must meet strict advertising requirements
Australian employers need to pay close attention when they meet labour market testing (LMT) advertising rules. These rules make sure local workers get a fair chance at available jobs.
Minimum number of job ads
Australian migration rules say employers must post at least two advertisements for each position. The policies now ask for three ads in total, and one must appear on the Government Workforce Australia website. This change affects many employers who used to post just two ads. Companies can let their recruitment agencies post these ads.
Approved advertising platforms
The Department of Home Affairs accepts only specific platforms to advertise jobs. Here’s where you can post your ads:
- Professional recruitment websites that reach across Australia (e.g., Seek, Indeed, Jora)
- Job websites specific to your industry
- LinkedIn’s job platform (ads can’t be limited to LinkedIn members)
- National newspapers or magazines published at least monthly
- National radio broadcasts
- Your company website (only if you’re an accredited sponsor)
The Department won’t accept ads posted on general classifieds websites, Twitter, Instagram, or small local publications. You must pick your advertising channels carefully to stay compliant.
Required ad content and salary disclosure
Your job ads must include specific details to meet Department rules. Each ad needs:
- Job title and description (you can list multiple positions in one ad)
- Skills and experience needed for the role
- Your company name or the recruitment agency’s name
- Salary details if the yearly pay is below AUD 147,394.66
You can show a salary range instead of an exact number (like “AUD 122,319.22 – AUD 137,609.12”). Jobs paying less than the threshold must show salary information.
Timing and duration of advertisements
Time rules for these ads are strict. Each ad must run for at least 28 consecutive calendar days. Your ads don’t need to run at the same time – you can spread them out as long as each runs for the required time.
You must complete all advertising within four months before you submit your nomination application. This rule helps ensure your testing shows the current job market. People should be able to apply throughout the entire ad period.
Note that you must finish your labour market testing before you decide to sponsor someone from overseas. This means you should test the market before you sign an employment contract with a visa applicant.
Department allows exemptions under specific conditions
Labour Market Testing (LMT) stands out from other immigration rules because it comes with several key exemptions. These exceptions recognise trade agreements and special cases where you don’t need to follow standard advertising rules.
International Trade Obligations (ITO) explained
Australia’s commitments under free trade agreements and the World Trade Organisation (WTO) General Agreement on Trade in Services make up its International Trade Obligations. We needed these agreements because labour market testing would clash with Australia’s international promises. ITOs help Australia and its trading partners agree that certain workers can move between countries without the usual migration restrictions.
These obligations are vital to Australia’s economic strategy. They help international businesses operate smoothly while keeping proper migration controls in place. The rules apply to specific nationalities and business cases rather than giving everyone a free pass.
List of exempt nationalities and trade partners
Different groups of foreign nationals don’t need to do labour market testing based on their citizenship or work status:
- Citizens or nationals from Brunei, China, Japan, Malaysia, Mexico, Peru, Thailand, and Vietnam
- Citizens, nationals, or permanent residents from Canada, Chile, South Korea, New Zealand, Singapore, and the United Kingdom
- Employees of associated entities located in ASEAN countries (including Brunei, Myanmar, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, and Vietnam), Canada, Chile, China, Japan, Mexico, South Korea, United Kingdom, New Zealand, Peru, and several Pacific nations
Executives and senior managers get special treatment under these rules. The ITO exemptions cover positions like Advertising Manager, Chief Executive, Chief Information Officer, Corporate General Manager, Corporate Services Manager, Finance Manager, Human Resource Manager, Sales & Marketing Manager, and Supply and Distribution Manager.
Citizens from WTO member countries don’t need testing if they’ve worked full-time for their nominating employer in Australia for at least two years before lodging their nomination.
Disaster relief and other specified exemptions
Migration regulations offer more flexibility during extraordinary times. The Minister can exempt sponsors from LMT requirements “if a major disaster has occurred in Australia, that has such a significant impact on individuals, that a government response is required”.
These disaster relief exemptions need written approval and only work for specific sponsors. The Minister might limit them to certain nominations or types of nominations. Right now, no disaster exemption has been officially granted.
These exemptions give eligible employers useful flexibility. However, they’re targeted exceptions rather than broad exclusions from labour market testing. Remember that nominations under labour agreements or the Skilled Employer Sponsored Regional (Provisional) visa (subclass 494) can’t use these exemptions.
Certain roles qualify for alternative evidence
The Department of Home Affairs allows alternative evidence for labour market testing in certain cases. Employers can provide written explanations rather than meet standard advertising requirements in special situations.
Select occupations and high-income roles
Positions that need people with proven exceptional achievements worldwide qualify for alternative evidence options. This pathway works for professionals in sports, academia, research, and elite chefs. Employers must show why their nominee stands out as either the only qualified person or one of few people globally who can do the job.
Roles that pay AUD 382,247.56 or more per year get special treatment. Employers with these high-paying positions just need to submit a written document. This should detail their local labour market testing methods, such as executive searches that looked at Australian candidates.
Medical practitioners make up another group that can use alternative evidence. The rules apply to roles in ANZSCO Minor Group 253 (all but General Practitioners) and Unit Group 4111 (Ambulance Officers and Paramedics). These employers must explain in writing why suitable Australian workers cannot be found.
Intra-corporate transfers and existing visa holders
Companies can move staff from their overseas offices to linked Australian entities without regular advertising through intra-corporate transfers (ICTs). They need to provide transfer arrangement documents and explain why the move makes sense.
This exception works under certain rules. Staff transfers must come from associated entities in ASEAN countries, Canada, Chile, China, Japan, Mexico, South Korea, United Kingdom, New Zealand, or various Pacific nations.
Alternative evidence rules help current subclass 482, 494 or 457 visa holders who need new nominations because:
- Annual earnings have changed
- Business restructuring has affected employment arrangements
These cases need employers to confirm the position belongs to a current visa holder and explain the reasons for the new nomination.
How to prepare a written submission
Each type of alternative evidence needs specific details in the written submission. Submissions for exceptional talent positions should prove the nominee’s rare or unique qualifications. High-income role submissions must describe the executive search process.
ICT submissions should explain why the transfer makes sense and how it will work. Submissions for existing visa holders who need new nominations must detail the exact circumstances behind the change.
Your submission should give a full picture while staying brief. Make sure to explain why normal job advertising couldn’t find qualified Australian candidates. This alternative path recognises that standard advertising doesn’t always work for specialised roles, yet ensures Australian workers get priority when possible.
Employers risk refusal if LMT is not properly documented
The success of visa nominations depends on proper documentation of labour market testing. Applications often fail not because employers didn’t test the market, but because they couldn’t prove their efforts well enough.
Common mistakes in LMT compliance
Many sponsors make the mistake of poor advertising practises. They don’t keep their ads running for the mandatory 28-day period. Some rely only on non-compliant channels like social media or their company websites. The documentation of their hiring process lacks completeness. Visa officers reject applications that contain non-English evidence or use ads more than four months old.
What evidence must be retained
The hiring process needs detailed record-keeping. Required documents include:
- Online ad copies or screenshots showing how they appeared
- Specific dates of ad campaigns
- Total applications from local candidates
- Number of job offers made (not counting the nominee)
- Clear reasons why other candidates didn’t qualify
Job boards are a great way to get analytics that show advertising timelines and application numbers. These details help strengthen nomination applications.
How to avoid nomination rejection
Employers need to document their recruitment work meticulously to avoid rejection. Screenshots of published ads prove both content and dates. A systematic approach to filing and retrieving hiring documents will keep them ready for audits. Companies that work with recruiters must ensure they receive all analytics and candidate evaluations for their records.
Conclusion
Labour market testing is the life-blood of Australia’s skilled migration framework. It protects local job opportunities and lets businesses tap into international talent when they need it. Without doubt, employers need to pay close attention to detail, especially with the December 2023 changes that made requirements standard across visa subclasses.
These regulations need careful planning and proper documentation. Businesses must post their ads on approved platforms for 28 days with all the required details. The timing is significant – all testing should happen within four months before lodging the nomination and before making any final employment arrangements with overseas candidates.
The requirements might look tough, but some exemptions exist through international trade deals, especially for citizens from partner countries. Alternative evidence paths are open for exceptional talent, high-income roles, and intra-corporate transfers. All the same, most employers need to follow standard labour market testing steps.
Most compliance issues happen because of poor documentation rather than insufficient testing. Keeping ad screenshots, complete applicant records, and detailed rejection reasons serves as a shield against nomination refusal.
Labour market testing’s framework serves a balanced goal – it protects Australian workers and helps businesses fill real skill gaps. Employers who know how to guide through these requirements end up in a good position to sponsor overseas talent when local hiring falls short.
FAQs
Q1. What is Labour Market Testing in Australia? Labour Market Testing is a mandatory process for Australian employers seeking to sponsor foreign workers. It requires employers to demonstrate that they have genuinely attempted to recruit Australian workers before hiring overseas talent for specific positions.
Q2. How long should job advertisements run for Labour Market Testing? Job advertisements for Labour Market Testing must run for at least 28 consecutive calendar days (four weeks). These advertisements need to be conducted within four months prior to lodging the visa nomination application.
Q3. Are there any exemptions from Labour Market Testing requirements? Yes, exemptions exist for citizens of certain countries under International Trade Obligations, as well as for specific high-income roles and intra-corporate transfers. However, these exemptions are limited and do not apply to all visa subclasses.
Q4. What information must be included in job advertisements for Labour Market Testing? Job advertisements must include the position title and description, required skills or experience, the name of the approved sponsor or recruitment agency, and salary information if the annual earnings are below AUD 147,394.66.
Q5. What are the consequences of not properly documenting Labour Market Testing? Failure to properly document Labour Market Testing can result in visa nomination refusal. Employers must retain comprehensive records of their recruitment efforts, including copies of advertisements, dates they ran, number of applications received, and explanations for why local candidates were deemed unsuitable.