Labor Market Testing Requirements for Australian Sponsorship

In Australia, when companies hire or invite international skilled workers to the country to fill a certain designated vacant position that cannot be filled by local workers, they undergo a labor market testing. It is mandatory for employers and sponsors to provide evidence that they have assessed the local labor market before inviting foreign workers to the country.  

However, the requirement of Labor Market Testing (LMT) is applied to Temporary Skill Shortage (subclass 482) visas and Skilled Employer Sponsored Regional (subclass 494) visas. Therefore, if you are sponsoring a skilled worker under these visas, it is mandatory for you to satisfy the labor market testing requirement during the nomination stage.

Moreover, make sure that you are performing LMT appropriately and within the allotted time period in order to get successful application approval. Continue reading the following information to learn more about LMT and its requirements for nominating a skilled professional in Australia.

What is Labor Marketing Testing (LMT)?

Labor Marketing Test or LMT describes a program that allows sponsors to provide evidence that they have checked the local labor market prior to inviting international skilled workers to the country. So, the labor marketing test ensures that local workers are given a chance to apply for open positions before sponsors turn to employ foreign labor. Employers must submit proof of labor market testing with a nomination application to the Department of Home Affairs Australia. 

Requirements for Labor Market Testing for Australian Visa Sponsorship

Below are listed the requirements for labor market testing for certain Australian visa sponsorships; 

1. Advertisement Requirements

It is important for employers to advertise employment opportunities via authorized platforms for a certain period of time. These channels can include online employment portals, national print media, and Government job boards. Moreover, the employer must nominate at least two job ads for a certain position.

Advertisement content must include these details;

• Job position, title, or description
• Required qualifications and skills
• Application process
• The salary of the job, in the event that it falls short of AUD$ 96,400.

2. Advertisement Duration

The advertisement time for a certain job vacancy is set according to certain rules and regulations. This period usually gives local applicants enough time to apply. Moreover, it also benefits the employer, providing him with sufficient time to evaluate the talent pool. Usually, the advertisements run for a minimum period of four weeks, during which time applications are accepted.

3. Employment Requirements

The credentials, skills, and experience needed for the designated job position must be appropriately mentioned in the job advertisement. Employers have to make sure that the job qualifications aren’t unfairly stringent or designed to give preference to overseas applicants over local ones.

4. Required Documents

Employers must keep a record of the labor market testing process. The record refers to certain documents such as evidence of job advertisement, the number of local applications they received, and any actions they took to hire local talent.

5. Compliance Verification

In order to confirm that employers have complied with Labor Market Testing (LMT) rules, immigration authorities carry out audits or checks. Failure to comply with LMT regulations may lead to fines or the denial of foreign worker visa applications.

Still confused? Schedule an online consultation now to get professional advice from experts and immigration lawyers. 

Latest Changes in Labor Market Testing

The labor marketing test criteria have changed significantly as of December 11, 2023. These changes are;

• Instead of three, employers are now required to run two legitimate advertisements.
• It is not mandatory to post advertisements on the government job boards Workforce Australia.

Exemptions from Labor Market Testing

Under certain circumstances, companies and businesses don’t need to conduct labor market testing. These include;

• Occupations-based exemptions
• International Trade Obligations (ITO)

1. Occupations-Based Exemptions

Previously, occupations-based exemptions for labor market testing were attainable under a Temporary Work visa (subclass 457). Currently, they are not accessible under the Temporary Skills shortage visa (subclass 482) and Skilled employer-sponsored regional visa (subclass 494).

2. International Trade Obligations (ITO)

Under some International trade obligations (ITOs), labor market testing is waived, particularly for nominees from certain nations and executive or senior management positions. LMT doesn’t apply to the following individuals;

• A citizen of South Korea, South Korea, New Zealand, Singapore, Canada, Chile, Brunei, China, Japan, Mexico, Malaysia, Peru, Thailand, Vietnam, or the United Kingdom.
• A working employee of a related company in any of the following countries: the United Kingdom, Canada, Chile, China, Japan, Mexico, South Korea, New Zealand, Peru, Samoa, Tuvalu, Kiribati, Tonga, Solomon Islands, Niue, the Cook Islands, or Vanuatu.
• A national of a country or territory that is a member of the World Trade Organization and has spent the last two years working full-time in Australia in the designated role.

3. Alternative Arrangements

You are not required to strictly adhere to the LMT requirements, as, under certain circumstances, you can adopt alternative arrangements. For instance, as an employer, you could have other plans in place if:

• The candidate is a top performer in their respective field with experience recognized on a global scale, such as a professional athlete. 
• The candidate is a current employee with a valid TSS or SERS visa, and the main reason you’re submitting a nomination application is that your company’s structure or salary has changed.

Important Note: This isn’t a comprehensive list. Therefore, you must seek professional advice to check out if your organization qualifies for labor market testing exemption to nominate employers for subclass 482.

How Can The Migration Help You?

The Migration is an authorized immigration agency with a team of MARA-certified agents in Australia. We provide authentic visa and education consultancy services to our clients. We offer a wide range of services to assist you, including;

• Choosing the right type of visa category.
• Document preparation and organization.
• Fill out the visa application correctly.
• Helping you to get a positive skills assessment. 
• Submission of Confirmation of Enrollment (CoE).

Therefore, schedule an appointment now and allow us to help you get successful approval of your visa application in Australia.

Related Articles

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FAQs

How can you become eligible for an Australian-sponsored work visa?

To be eligible for an employer-sponsored visa in Australia, you need to meet the following criteria;

• Your occupation must be mentioned in the Skilled Occupation List (SOL).
• You must have a minimum of two years of experience in your related occupation.

Is labor market testing mandatory for subclass 482 visas?

Labor market testing (LMT) is required to nominate employers on a Temporary skills shortage visa (subclass 482) and a Skilled employer regional sponsored visa (subclass 494).

How much time does labor market testing take?

The labor market testing procedure typically requires five to six weeks to complete. Usually, the job posting will remain active for 28 days.

What is meant by Australia’s labor market impact assessment?

Labor market impact assessment refers to the confirmation letter that shows that an international skilled worker is required to occupy a certain vacant position in Australia. Once you receive the confirmation letter, you can apply for a work visa. The validity of this impact assessment is 18 months.

Final Thoughts

So, by now, you must have grasped the idea of labor market testing in Australia. If you are planning to sponsor a skilled worker on subclass 482 or subclass 494 visas, it is imperative for you to submit a nomination application. Attach the evidence of labor market testing with your nomination application. 

However, LMT is not required to sponsor workers under a TSS visa subclass 482. Moreover, you can also make alternative arrangements in some cases. But, if you are confused or have any queries, it is advisable to seek professional help. You can also contact us at The Migration website to get help from expert immigration lawyers in Australia.