Labour Market Testing (LMT)
Providing your business with the most up to date advice and assistance regarding sponsorship, nominating overseas workers and remaining compliant with sponsor obligations.
What Is Labour Market Testing (LMT)?
The subclass 482 Temporary Skill Shortage (TSS) visa and subclass 494 Skilled Employer Sponsored Regional (Provisional) visa allow employers to sponsor overseas workers to live and work in Australia on a temporary basis. Unless an International Trade Obligation (ITO) applies, you must provide evidence that you have tested the labour market by attempting to recruit a suitably qualified and experienced Australian worker for the nominated position. This is called the Labour Market Testing (LMT) requirement, the details of which are provided below:
Labour Market Testing (LMT) Requirements
To satisfy the LMT requirement, when the position nomination is lodged, you MUST provide evidence that you have advertised the position within the last 4 months, for a total period of at least 4 weeks (unless the nominated position is subject to alternative requirements). The advertising does not need to be in consecutive weeks.
The advertising must meet the following criteria:
- the nominated position must be advertised in Australia
- on the Australian Government’s Workforce Australia website: https://www.workforceaustralia.gov.au/ AND
- at least TWO advertisements (paid or unpaid) were published:
- on a prominent or professional recruitment website with national reach, that publishes advertisements for positions throughout Australia
NOTES: Industry-specific recruitment websites that are relevant to the nominated occupation and in significant use by the industry are also acceptable.
General classifieds websites and advertisements solely through social media notification (e.g. Twitter or Instagram) are NOT acceptable. Although LinkedIn’s online recruitment platform is acceptable, job vacancies restricted to LinkedIn profile members only are NOT acceptable.
- in national print media i.e., newspapers or magazines with national reach that are published on at least a monthly basis, and are marketed throughout Australia
- on national radio i.e., radio programs that are broadcast or syndicated nationally
NOTES: the nominated position may be advertised in the same media type (such as newspaper advertisements − on two separate occasions) or in any two different media types simultaneously, or on two separate occasions. If you are an accredited sponsor, it is also acceptable to advertise on your business website.
- applications or expressions of interest for the position were accepted for at least 4 weeks from when the advertisement was first published
- the advertisement must be in English, and must include:
- the position title or description
- the name of your business, associated entity (or the recruitment agency used)
- the skills or experience required for the position and
- the annual salary (or salary range or applicable enterprise agreement salary) for the position (unless this exceeds $AU96,400 per year)
NOTE: If within the last 4 months your business (or an associated entity) has made any Australian citizens or permanent residents redundant or retrenched from positions in the nominated occupation, you must have undertaken this advertising SINCE these events occurred.
You are required to supply copies of both advertisements placed as evidence that your advertising meets these criteria. Please also provide a brief statement regarding the results of your recruitment process, including how many candidates (if any) you interviewed, and why they were deemed unsuitable. If LMT evidence is not submitted at the time of the position nomination application lodgement, the application will be refused.
Alternative Labour Market Testing Arrangements
Alternative LMT requirements apply in certain circumstances, i.e. where:
- the position requires someone with an internationally recognised record of exceptional and outstanding achievement in a profession or field (e.g. sport, academia or research, or as a top‑talent chef); OR
- the nomination is lodged for an existing subclass 482, 494 or 457 visa holder solely due to a change in earnings or business structure; OR
- the nomination relates to an intra-corporate transfer; OR
- the annual earnings for the position are at least AU$250,000; OR
- the position nominated is a key medical occupation: i.e. most medical practitioners (excluding GPs), as well as ambulance officers and paramedics
In these circumstances, the mandatory LMT requirements referred to above do NOT apply. Instead, you must provide a written submission explaining why a suitably qualified and experienced Australian is not readily available to fill the nominated position. Please contact us for further details regarding the information that you must provide in your submission, if applicable.
International Trade Obligation Exemptions to LMT
LMT is NOT required where an ITO applies. This occurs where the person you are nominating is:
- nominated for a subclass 482 TSS visa (There are no Labour Market Testing exemptions for subclass 494 nominations) AND
- 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 OR
- currently employed by an associated entity of your business that 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 OR
- currently employed by an associated entity of your business that operates in a country that is a member of the World Trade Organisation (WTO). The person must be nominated in an Executive or Senior Manager occupation for the purposes of international trade obligations, and must be responsible for the entirety (or a substantial part) of your company’s operations in Australia OR
- nominated as an Executive or Senior Manager occupation for the purposes of international trade obligations, and your business currently operates in a WTO member country or territory, and is seeking to establish a business in Australia OR
citizen or eligible permanent resident (meaning permanent residents of Armenia, Canada, New Zealand or Switzerland) of a WTO member country or territory, and has worked for you (or an associated entity) in the nominated position in Australia on a full-time basis for the last two years.
Where an ITO applies, you will need to provide additional documents based on your nominee’s circumstances and the relevant obligation e.g. evidence of your nominee’s nationality/citizenship/permanent residence status; evidence of their current employment; evidence of your association with their current employer. Please contact us for further details.
The following occupations are considered to be Executives or Senior Managers for the purpose of ITO labour market testing exemptions:
- Advertising Manager
- Chief Executive or Managing Director
- Chief Information Officer
- Corporate General Manager
- Corporate Services Manager
- Finance Manager
- Human Resource Manager
- Sales & Marketing Manager
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