What are the Changes to Labour Market Testing Requirements for Employer-Sponsored Visas?

Summary

• Employers sponsoring overseas workers on TSS (subclass 482) or certain other visas must conduct labour market testing (LMT) to demonstrate that no suitable Australian worker is available for the role.
• LMT must generally be completed within four months before lodging a nomination application and must include genuine advertising efforts across approved channels.
• Certain exemptions apply, including roles covered by international trade obligations or positions on the exemption list.
• This article explains the labour market testing requirements that Australian businesses must meet when sponsoring overseas workers under Australian immigration law.
• The content is produced by LegalVision, a commercial law firm that specialises in advising clients on employment and immigration compliance matters.

Tips for Businesses

Advertise roles on approved platforms, such as Seek or LinkedIn, and keep thorough records of all job postings, applicant responses, and outcomes. Ensure advertising runs for at least 28 days and falls within the required four-month window before lodging your nomination. Retain all documentation, as the Department may request evidence.

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On this page

• 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

Labour market testing (LMT) rules for employer-sponsored visas changed on 11 December 2023. If you sponsor foreign workers under subclass 482 or 494 visas, you must meet updated LMT requirements before your nomination is approved. These rules ensure employers genuinely try to hire locally before recruiting overseas. 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. 

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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.

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Frequently Asked Questions