Labour Market Testing (LMT)
If an employer wants to nominate a foreign worker (visa applicant) for certain visas (e.g. Subclass 482 and 494), they must test the Australian local labour market by means of advertising the nomination position to show a suitably Australia worker can’t be found. This is called Labour Market Testing (LMT).
When and how Labour Market Testing (LMT) must be completed and what evidence is required depend on the particular visa stream for the nomination application.
The below requirements are for:
- TSS visa (Subclass 482) short-term stream and medium-term stream
- Skilled Employer Sponsored Regional (Provisional) visa (subclass 494) Employer Sponsored stream.
When employers nominate a foreign worker, they must show evidence of advertisements for the nominated occupation.
In general, the advertisement must have been run for minimum 4 weeks within the 4 months before lodging the nomination application.
If an Australian worker or permanent resident worker in the nomination occupation was laid off within the 4 months prior to the nomination application, LMT advertisement must have started after that.
Most importantly, the advertising must meet all the requirements in the immigration law, or the nomination application may be refused.
Labour Market Testing (LMT) Exemptions
LMT is not required where Australia has waived this requirement under its International trade obligations (ITOs), including in any of the following circumstances:
- the worker you nominate is applying in one of the LMT exempt categories under these ITOs and is a citizen/national of 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.
- the worker you nominate 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.
- the worker you nominate is a current employee of an associated entity of your business, and that associated entity operates in a country that is a member of the World Trade Organisation (WTO), and the nominated occupation is an Executive or Senior Manager occupation for the purposes of ITOs, and the nominee will be responsible for the entire or a substantial part of your company’s operations in Australia.
- your 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, and the nominated occupation is an Executive or Senior Manager occupation for the purposes of ITOs.
- the worker you nominate is a citizen or an eligible permanent resident* of a WTO member country or territory and has worked for you in the nominated position in Australia on a full-time basis for the last two years.
Note: the above ITO exemptions do not apply for nominations lodged under a labour agreement and the Skilled Employer Sponsored Regional (Provisional) visa (subclass 494).
*eligible permanent residents in this circumstance include permanent residents of Armenia, Canada, New Zealand or Switzerland.
For the purposes of ITOs, the following occupations are considered to be Executives or Senior Managers.
| Occupation | ANZSCO Code |
| Advertising Manager | 131113 |
| Chief Executive or Managing Director | 111111 |
| Chief Information Officer | 135111 |
| Corporate General Manager | 111211 |
| Corporate Services Manager | 132111 |
| Finance Manager | 132211 |
| Human Resource Manager | 132311 |
| Sales & Marketing Manager | 131112 |
| Supply and Distribution Manager | 133611 |
Countries which are currently WTO members are listed on the World Trade Organization website.
For more information on ITOs, see:
- Migration (International trade obligations relating to labour market testing) Determination (LIN 21/075) 2021
- Trade and investments – Department of Foreign Affairs and Trade (DFAT)
The Australia-United Kingdom Free Trade Agreement (A-UKFTA)
The Australia- United Kingdom Free Trade Agreement entered into force on 31 May 2023. It is located on the DFAT website.
The mobility provisions of the A-UKFTA are contained in:
- Chapter 11 Temporary Entry for Business Persons | Australian Government Department of Foreign Affairs and Trade and
- Annex IV Specific Commitments on Temporary Entry for Business Persons – Schedule of Australia | Australian Government Department of Foreign Affairs and Trade
Alternative requirements
Alternative submission requirements apply in the following cases:
| Case | Requirement |
| Where the occupant has to have an internationally recognised record of exceptional and outstanding achievement in a profession or in the field of sport, academia and research, or a top-talent chef. | Your submission should explain why the specific individual nominated is the only person, or one of very few people, who could undertake the nominated position. |
Where there is a new nomination for an existing TSS, subclass 494 or subclass 457 visa holder solely because:
|
Your submission should explain that the position is already filled by an existing TSS, subclass 494 or subclass 457 visa holder, but give reasons why a new nomination is required (for example, due to a business restructure). |
| Where there is an intra-corporate transfer (ICT) the transfer of an existing employee of a company operating overseas to an associated entity of that company operating in Australia. | Your submission should explain the need for an ICT transfer and documentation outlining the transfer arrangement. |
| Where the annual earnings will be equal to or greater than AUD250,000. | Your submission should explain the methods of testing the local labour market. For example, how you found the overseas worker via an executive search process, which included inviting applicants from Australia. |
Where the nominees are within:
|
Instead of meeting standard LMT requirements, a written submission may be made by the nominator that provides reasons why a suitably qualified and experienced Australian citizen or permanent resident, or suitably qualified and experienced eligible temporary visa holder, is not readily available to fill the nominated position. |
