Changes to Labour Market Testing Requirements for Employer-Sponsored Visas

In Short

• Labour Market Testing (LMT): The process of demonstrating that an Australian business has genuinely tried to hire local workers before sponsoring a foreign employee.
• Purpose: Ensures compliance with visa requirements and shows that the position could not be filled locally, which is necessary for certain skilled visas.
• Key Steps: Advertise the role in approved channels, document recruitment efforts, assess candidates fairly, and retain evidence of the recruitment process.

Tips for Businesses

Conduct labour market testing thoroughly and systematically. Use approved advertising channels, keep detailed records of applications and interviews, and document reasons for selecting the overseas candidate. Seek advice from a migration lawyer to ensure your LMT process meets Department of Home Affairs standards.

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Table of Contents

• What Evidence Do You Need?
• Other Evidence
• Exemptions to Labour Market Testing for 482 Nominations
• Alternative Arrangements to LMT for 482 Nominations
• What About Employer Nominated Permanent Residency Visas (subclass 186)?
• Key Takeaways
• Frequently Asked Questions

If you are an employer sponsoring foreign workers, you need to know about recent changes to the requirements. Employers who sponsor foreign workers under subclass 482 and 494 visas have to comply with new labour market testing (LMT) requirements. These requirements were most recently updated on December 11, 2023. This article outlines the labour market testing requirements, exemptions, and any alternative arrangements available.

What Evidence Do You Need?

Essentially, for all 482 and 494 nominations, you need to provide evidence of posting two job advertisements. These advertisements should reach a national audience and be published on:

• a national recruitment website such as:
  • Seek;
  • Indeed;
  • JORA;
  • Glassdoor; and
  • LinkedIn;
• your accredited sponsor’s business website;
• in print media; or
• on radio.

It is worth noting that previously, a third job advertisement on Workforce Australia was necessary, but this requirement has changed.

Other Evidence

Despite the changes mentioned above, all other LMT requirements remain unchanged. You must:

• advertise jobs for at least 28 days or 4 weeks;
• start and finish advertising within the four months before submitting the 482 or 494 nomination application; and
• include the following details in job advertisements:
  • job/position title;
  • description of the skills, experience, and qualifications needed for the role;
  • name of your organisation (the sponsor) or the recruitment agency your business has hired; and
  • salary or salary range (unless the salary exceeds AUD$96,400).

LMT exemptions and alternative arrangements still apply to 482 nomination applications. However, there are no LMT exemptions for 494 nominations. All 494 nominations must meet LMT criteria.

Exemptions to Labour Market Testing for 482 Nominations

Where an International Trade Obligation (ITO) applies, you do not require LMT. This occurs when the person you are nominating is:

• a citizen/national of:
  • Brunei;
  • China;
  • Japan; 
  • Mexico; 
  • Malaysia; 
  • Peru;
  • Thailand;
  • Vietnam;
• a citizen, national or permanent resident of:
  • Canada
  • Chile;
  • South Korea; 
  • New Zealand; 
  • Singapore; or
  • United Kingdom;
• currently employed by an associated entity of your business that is located in an Association of South-East Asian Nations (ASEAN) country, such as:
  • Brunei;
  • Myanmar; 
  • Cambodia; 
  • Indonesia; 
  • Laos;
  • Malaysia; 
  • Philippines; 
  • Singapore;
  • Thailand;
  • Vietnam;
  • Canada;
  • Chile;
  • China; 
  • Japan; 
  • Mexico; 
  • South Korea; 
  • United Kingdom;
  • New Zealand;
  • Peru;
  • Samoa; 
  • Tuvalu; 
  • Kiribati; 
  • Tonga; 
  • Solomon Islands;
  • Niue; and
  • the Cook Islands or Vanuatu;
• 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 international trade obligations and must be responsible for the entirety (or a substantial part) of your company’s operations in Australia;
• nominated as an executive or senior manager occupation for international trade obligations, and your business currently operates in a WTO member country or territory (or Tuvalu, Kiribati, Niue, or the Cook Islands) and is seeking to establish a business in Australia; or
• a citizen or eligible permanent resident (in Armenia, Canada, NZ or Switzerland) of a WTO member country and is being nominated by an employer for whom the nominee has worked in Australia on a continuous, full-time basis for two years immediately before the nomination is lodged.

Alternative Arrangements to LMT for 482 Nominations

You do not have to undergo LMT if:

• the position demands someone with an internationally recognised track record of outstanding achievement in a profession or field (such as sports, academia, research, or as a top-talent chef);
• you are lodging the nomination for an existing subclass 482 or 457 visa holder solely due to a change in earnings or business structure;
• the nomination is related to an intra-corporate transfer;
• the annual earnings for the position are at least AU$250,000; or
• the nominated position is for a critical medical occupation, such as most medical practitioners (excluding GPs), ambulance officers, and paramedics.

In these cases, you must provide a written submission explaining why you could not find a suitably qualified Australian worker. Your submission should also detail why one of the above scenarios applies.

What About Employer Nominated Permanent Residency Visas (subclass 186)?

LMT is not a legislative requirement for subclass 186 in the direct entry or temporary residence transition streams. However, an employer’s efforts to recruit an Australian worker can be considered in relation to whether the position is, in fact, genuine. 

Employer Guide to Sponsoring Foreign Workers

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Key Takeaways

LMT is crucial for all 482 and 494 nominations. As an employer, you need to show enough proof of your efforts to recruit an Australian worker. If you fail to do this, your nomination may be refused, and you’ll lose government fees and the SAF levy.

Starting December 11, 2023, all 482 and 494 nominations must contain only two job advertisements. There are no exceptions for 494 nominations. However, for 482 nominations, if you are eligible, LMT exemptions and alternative arrangements may apply.

If you need help with labour market testing requirements, our experienced immigration lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.

Frequently Asked Questions