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What Is Labour Market Testing and When Does It Apply?

Written by Seven Corp | Sep 22, 2026, 1:00:01 AM

You have found the right person. They are qualified, experienced, and ready to start. Do you still need to advertise the job before sponsoring them?

For most employer-sponsored nominations in Australia, yes.

What is Labour Market Testing?

Labour Market Testing (LMT) is a formal requirement that applies to most employer-sponsored visa nominations. Its purpose is to demonstrate that the employer genuinely tested the Australian labour market before turning to an overseas worker to fill the position.

The Department of Home Affairs currently requires employers to advertise the role in Australia for at least four weeks across at least two separate advertisements before lodging the nomination.

Why is it required even when the candidate is already identified?

This is where LMT feels counterintuitive to many employers.

The requirement is not about helping the employer find a candidate. It is evidence that the Australian labour market was genuinely tested, that a suitable local worker was sought and not found. Having an excellent overseas candidate ready does not, by itself, demonstrate that.

An employer might have the ideal person in mind from day one. The LMT process still needs to occur.

When does LMT not apply?

There are exemptions. Certain occupations, visa types, and specific circumstances can remove the LMT requirement. International trade obligations create exemptions in particular situations. Some occupations on specific lists may also be exempt.

Whether an exemption applies to your specific nomination is not something to assume. It should be confirmed before the recruitment process begins, because proceeding without LMT when it is required will stop the nomination from being lodged.

The timing problem most employers encounter

LMT is commonly treated as a step that happens after the employer has decided to pursue sponsorship. By then, the nomination is often already being prepared, and the advertising is rushed to meet a perceived deadline.

The more effective approach is to integrate LMT into the recruitment process from the start. Before any advertising goes live, confirm what the nomination will require — platform, content, duration, and documentation. That way, the recruitment activity serves both purposes simultaneously rather than having to be repeated.

Frequently asked questions

How long do I need to keep records of the advertising?

Records of LMT (including the content of the advertisements, the platforms used, and the exact dates they ran) should be retained as part of the sponsorship documentation. The Department can request this evidence.

Can previous recruitment activity count toward LMT?

Generally, recruitment must have occurred within a specific window before lodgement and must meet the current requirements. Earlier informal recruitment, referrals, or word-of-mouth searching does not substitute for formal LMT evidence.

Book a consultation with Seven Corp before advertising for a role you intend to sponsor. Confirming the requirements upfront saves significantly more time than correcting them afterwards.