What businesses need to know about Labour Market Testing (LMT)

In general, labour market testing involves advertising the position on the local market, to prove that no suitable Australian workers match the job description, and an overseas worker is being nominated.

The labour market testing (LMT) is required for the Skills in Demand visa (subclass 482) under the Core Skills stream and Specialist Skills stream and the Skilled Employer Sponsored Regional (Provisional) visa (subclass 494) Employer Sponsored stream.

The purpose of the LMT, as the name says, is to prove the local market, and it involves advertising the nominated position in Australia for at least 28 days, and no more than 4 months before lodging the nomination application. The approved sponsor is responsible for providing a copy of the advertising material.

The advertising must include the following information:

• Job title or description in English - Note: Multiple positions in one advert are acceptable.
• The skills or experience required for the position.
• The name of the approved sponsor or the name of the recruitment agency being used by the sponsor.
• The salary for the role - if the annual earnings for the role are less than AUD 96,400 - Note: It is acceptable to publish a salary range (e.g. AUD 80,000 to AUD 90,000).
• The advertisement must be published in 2 media, such as:
  • Prominent or professional recruitment website.
  • Industry-specific recruitment websites.
  • General classified websites or advertisements solely through social media such as Twitter, Facebook, Instagram or TikTok are not acceptable methods.
  • LinkedIn's online recruitment platform is acceptable for LMT purposes. 
  • National print media and radio with national reach
  • Business' website if the sponsor is an accredited sponsor.

Exemptions cases

From 11 December 2023, it is no longer necessary to advertise with the government’s employment service Workforce Australia. Despite the reduction in the Labour Market Test (LMT) for the Skill in Demand visa, 484, and the Skilled Employer Sponsored Regional visa (494), there are a few cases where the LMT is not required.

Cases under International Trade Obligations (ITOs). International Trade Obligations may relate to certain responsibilities under the World Trade Organization, Fair Trade Agreements or the General Agreement on Trade in Services. Exemption is included in any of the following circumstances:

• A citizen of any of the ITO countries: Brunei, China, Japan, Malaysia, Mexico, Peru, Thailand, Vietnam or is a citizen/national/permanent resident of Canada, Chile, South Korea, New Zealand, Singapore or the United Kingdom.
• If the nominated worker is a current employee of a business that is an associated entity of your business, and the associated entity 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, United Kingdom, New Zealand, Peru, Samoa, Tuvalu, Kiribati, Tonga, Solomon Islands, Niue, the Cook Islands or Vanuatu.
• A citizen of a country that is a member of the World Trade Organisation (WTO), which has 166 member countries, and the nominated occupation is an Executive or Senior Manager occupation for ITOs, and the nominee will be responsible for the entire or a substantial part of the company's operations in Australia.
• If the business currently operates in a WTO member country or territory, or Tuvalu, Kiribati, Niue, or the Cook Islands, and is seeking to set up a business in Australia.
• A citizen of a country that is a member of the World Trade Organisation (WTO), and that individual has worked in Australia on a full-time basis in the nominated position for at least two years up until the nomination is lodged.

What is considered an Executive or Senior Manager occupation for ITOs:

• Advertising Manager (ANZSCO Code 131113)
• Chief Executive Officer or General Manager (ANZSCO Code 111111)
• Chief Information Officer (ANZSCO Code 135111)
• Corporate General Manager (ANZSCO Code 111211)
• Corporate Services Manager (ANZSCO Code 132111)
• Finance Manager (ANZSCO Code 132211)
• Human Resources Manager (ANZSCO Code 132311)
• Sales and Marketing Manager (ANZSCO Code 131112)
• Supply and Distribution Manager (ANZSCO Code 133611)

Countries which are currently WTO members are listed on the World Trade Organization.

To understand more about the opportunities international workers can bring to your business, make contact with any of the Seven Corp specialists, with a free consultation.

Email employer@sevencorpcom.au
Phone number: 1300 157 707