Labour Market Test in Australia
For Subclass 482 and Subclass 494 visas, the nominating employer must demonstrate to the Department of Home Affairs that a suitably qualified and experienced Australian worker is not available for the nominated position. To fulfill this requirement, the nominating business is mandated to conduct a Labour Market Test (LMT).
Overview of LMT Requirements
Labour Market Testing typically involves advertising the nominated position. The methods and timing of this testing depend on the specific visa stream for which you are applying.
Labour Market Testing Exemptions
Occupation-Based Exemptions
Currently, occupation-based exemptions for Labour Market Testing are not applicable to the Temporary Skill Shortage visa (Subclass 482) and the Skilled Employer Sponsored Regional (Provisional) visa (Subclass 494). There are no federal provisions for exemptions based on:
- Specific occupations
- Skill levels of groups of occupations (e.g., ANZSCO skill levels 1 or 2)
- Major disasters
Such exemptions were previously available under the Temporary Work (Skilled) visa (Subclass 457).
Exemptions Based on International Trade Obligations (ITOs)
Labour Market Testing is not required for Subclass 482 visas if it conflicts with Australia’s International Trade Obligations (ITOs) in the following circumstances:
- The nominated worker is a citizen or national of China, Japan, Mexico, Thailand, or Vietnam, or is a citizen, national, or permanent resident of Canada, Chile, South Korea, New Zealand, or Singapore.
- The nominated worker is a current employee of a business that is an associated entity of the sponsoring business, located in an Association of Southeast 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 nominated worker is a current employee of an associated entity that operates in a World Trade Organization (WTO) member country, where the nominated occupation is classified as Executive or Senior Manager under ITOs and the nominee will be responsible for a substantial part of the company’s operations in Australia.
- The sponsoring business currently operates in a WTO member country and is establishing a business in Australia, with the nominated occupation being Executive or Senior Manager under ITOs.
- The nominated worker is a citizen or permanent resident of a WTO member country (Armenia, Canada, New Zealand, or Switzerland) and has worked for the sponsoring business in the nominated position in Australia on a full-time basis for the past two years.
For the purposes of ITOs, the following occupations are considered Executives or Senior Managers:
- ANZSCO 131113 – Advertising Manager
- ANZSCO 111111 – Chief Executive or Managing Director
- ANZSCO 135111 – Chief Information Officer
- ANZSCO 111211 – Corporate General Manager
- ANZSCO 132111 – Corporate Services Manager
- ANZSCO 132211 – Finance Manager
- ANZSCO 132311 – Human Resource Manager
- ANZSCO 131112 – Sales & Marketing Manager
- ANZSCO 133611 – Supply and Distribution Manager
Australia’s International Trade Obligations
Australia is a signatory to several international agreements that establish trade relations, including:
- Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA)
- Australia-Chile Free Trade Agreement (ACL-FTA)
- China-Australia Free Trade Agreement (ChAFTA)
- Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
- Free Trade Agreement between Australia and Hong Kong, China (A-HKFTA)
- General Agreement on Trade in Services at Annex 1B to the Marrakesh Agreement Establishing the World Trade Organization (GATS)
- Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA)
- Japan-Australia Economic Partnership Agreement (JAEPA)
- Korea-Australia Free Trade Agreement (KAFTA)
- Malaysia-Australia Free Trade Agreement (MAFTA)
- Pacific Agreement on Closer Economic Relations Plus (PACER Plus)
- Peru-Australia Free Trade Agreement (PAFTA)
- Protocol on Trade in Services to the Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA)
- Regional Comprehensive Economic Partnership Agreement (RCEP)
- Singapore-Australia Free Trade Agreement (SAFTA)
- Thailand-Australia Free Trade Agreement (TAFTA)
Subclass 482 Labour Market Testing
When sponsors nominate an applicant for a TSS Subclass 482 visa, they must provide copies of all advertising materials used to promote the position. For most TSS Subclass 482 nominations:
- The position must have been advertised for a minimum of four weeks within the four months preceding the lodging of the nomination application. If an Australian citizen or permanent resident has been made redundant from the nominated occupation within the last four months, the advertising must have occurred since the date of that redundancy.
- Applications or expressions of interest for the advertised position must have been accepted for at least four weeks.
Labour Market Testing Advertisement Requirements for Subclass 482
For the LMT for Subclass 482, the advertisements must be in English and published in Australia, including the following details:
- The title or description of the position (multiple positions may be included in one advertisement).
- The skills or experience required for the position.
- The name of the approved sponsor or the name of the recruitment agency engaged by the sponsor.
- The salary for the position (if the annual earnings for the position are below A$96,400); a salary range is acceptable (e.g., A$80,000 to A$90,000).
For LMT Subclass 482, at least two advertisements must be published in one of the following mediums:
- A prominent or professional recruitment website with national reach that advertises positions throughout Australia (industry-specific recruitment websites relevant to the occupation are acceptable; general classifieds websites or advertisements solely on social media platforms like Twitter or Instagram are not acceptable. LinkedIn’s online recruitment platform is acceptable, but job vacancies restricted to LinkedIn profile members only are not).
- National print media (newspapers or magazines with national circulation published at least monthly).
- National radio with national reach.
- The business’s website, if the sponsor is an accredited sponsor.
Advertising on the Government’s Workforce Australia Website
In addition to the two advertisements mentioned above, the nominated position must also be advertised on the Government’s Workforce Australia website. The advertisement on Workforce Australia must include all the required information outlined above and must run for at least four weeks, with applications or expressions of interest accepted for a minimum of four weeks.
Labour Market Testing for Subclass 186 Visa
Labour Market Testing is not required for the Subclass 186 visa. However, conducting it may be beneficial to demonstrate the genuineness of the position and the nominating business’s commitment to hiring local labour.
Labour Agreement and Labour Market Testing
When requesting a labour agreement, the nominating business must provide proof of Labour Market Testing. If the labour agreement specifies this requirement, proof of LMT must also be provided when nominating an applicant. LMT is not required for Minister of Religion Labour Agreements (MoRLA).
Disclaimer: Aussie Migration Services Pty Ltd and its associates are independent consulting entities that are not affiliated in any way with the Australian Department of Home Affairs (DOHA). The information provided on this website does not constitute personal migration advice. For customized migration advice based on your specific circumstances, please contact one of our Immigration Consultants or register your interest with our associates.