What is Labour Market Testing?

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Published: 27 August 2024
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Simply put, Labour Market Testing (LMT) is going out into the local labour market to test if there is a suitable Australian Citizen or Permanent Resident candidate to fill the role on offer.

It is a mandatory requirement for the Subclass 482 and 494 applications, and suggested for the Subclass 186 ENS Direct Entry application stream.

Immigration has specific requirements on how the LMT requirement can be met. Let’s take a look.

Online job advertising is the most common form of LMT used by employers. This requires at least two advertisements posted for 28 consecutive days each, within the four months before lodging a Nomination application.

The advertising must be in English, with a position title, duties, a list of qualifications and experience required for the position, and an intended salary range.

There are no exemptions to this requirement for Subclass 494 applicants, and most applications made under a Labour Agreement.

Subclass 482 applicants may be able to access an exemption or supply alternative evidence.

Exemptions to LMT apply to Citizens and Permanent Residents of certain countries who have current International Trade Agreements with Australia. Evidence in the form of the nominee’s passport and/or permanent residency visa is sufficient to access this exemption.

Businesses looking to transfer employees from a business overseas to an associated business in Australia may be able to access an exemption depending on the location of the business and if the nominee is an executive or senior manager.

An exemption also applies to existing employees who hold a passport from a World Trade Organisation (WTO) member country and have worked for the business in Australia on a continuous, full-time basis for at least the last two years.

Businesses are permitted to provide ‘alternative evidence’ to job advertising in certain situations. This means submitting a letter and supporting documentation demonstrating that the nominee meets one of the specified circumstances, including:

  • Where the nominee has an internationally recognised record of outstanding achievement in their profession or field
  • Where the nominee is being transferred from an overseas business to an associated Australian business (intra-corporate transfer)
  • Where the annual earnings of the position will be at least AU$250,000 per annum

Nomination applications without suitable proof of LMT job advertising, alternative evidence submissions, or a clear exemption at the time of application will be refused by Immigration.

AVIE’s Corporate Immigration Services team will assist with LMT job advertising and alternative evidence submissions as part of our Subclass 482 and 494 application services. Contact us now to get started!