Labour Market Testing Explained: What Employers Must Prove Before Sponsoring

My Australian Career

Key Takeaways

  • Labour market testing (LMT) means advertising a job in Australia before you nominate an overseas worker.
  • For 482 and 494 nominations, you need at least two advertisements that ran for at least four weeks within the four months before you lodge.
  • Exemptions are narrow. There are no occupation-based exemptions, and trade-obligation exemptions do not apply to 494 nominations.
  • Keep copies of every advertisement, because you must provide them when you nominate.

What Is Labour Market Testing?

Labour market testing is the process of showing Home Affairs that you tried to fill a position with an Australian worker before nominating someone from overseas. For visas that require it, you must show that you cannot find a suitable Australian worker, and LMT generally involves advertising the position in Australia.

LMT applies to nominations under the Skills in Demand visa (subclass 482) Core Skills and Specialist Skills streams, and the Skilled Employer Sponsored Regional (Provisional) visa (subclass 494) Employer Sponsored stream. For Labour Agreement stream nominations, proof of LMT is required where the labour agreement specifies it.

The rules changed on 11 December 2023. It is no longer a requirement to advertise on Workforce Australia, so employers now need two valid advertisements instead of three. The Home Affairs labour market testing page sets out the current rules, and our 482 visa page shows where LMT fits in the nomination process.

Labour Market Testing Requirements for 482 and 494 Nominations

To meet the labour market testing requirements, your advertising must follow set rules on timing, content, placement and evidence. These apply to nominations lodged on or after 11 December 2023.

Timing

For most nominations, the position must have been advertised for at least four weeks within the four-month period immediately before you lodge the nomination. If an Australian citizen or permanent resident was made redundant or retrenched from the nominated occupation within those four months, the advertising must have taken place since the date of the redundancy or retrenchment. You must provide information about the redundancy or retrenchment with your nomination.

What the advertisement must include

Each advertisement must be placed in Australia and written in English. It must include:

  • The title, or a description, of the position.
  • The skills or experience required.
  • The name of the approved sponsor, or of the recruitment agency the sponsor is using.
  • The salary, if the annual earnings for the position are lower than AUD96,400. A salary range is acceptable.

Where you can advertise

You need at least two advertisements published in any of these places:

  • A prominent or professional recruitment website with national reach.
  • An industry-specific recruitment website that is in significant use in your industry.
  • National print media, meaning newspapers or magazines with national reach.
  • National radio.
  • Your own business website, but only if you are an accredited sponsor.

A general classifieds website, or an advertisement placed only through social media, is not acceptable. LinkedIn’s online recruitment platform is acceptable, but vacancies restricted to LinkedIn profile members are not.

Evidence

You must give Home Affairs copies of the advertising material when you lodge the nomination, including evidence of a total of two advertisements. Advertisements should have run for at least four weeks, and applications or expressions of interest must have been accepted for at least four weeks. A third party, such as a recruitment agency, can place the advertisements for you if you authorise them.

What Counts as Genuine Advertising?

Genuine advertising reflects the real position you plan to fill. It should describe the actual duties, skills, location and pay, rather than a role written to suit a particular candidate, and it should not be created after the fact to satisfy the rule.

LMT is not a formality. You are expected to consider Australian applicants properly, and an advertisement that does not match your nominated role can cause problems at the nomination stage.

When Does the Advertising Need to Happen?

Advertising needs to be finished inside a four-month window before you lodge, and it needs to have run for long enough. Plan the timeline backwards from your intended lodgement date.

  1. Prepare the advertisement so it meets the content rules above.
  2. Publish at least two advertisements on accepted platforms.
  3. Keep them running, and keep accepting applications, for at least four weeks. You can use overlapping periods that total four weeks.
  4. Lodge the nomination within four months of the advertising, with copies of every advertisement.

The same medium can be used twice if the advertisements run on two separate occasions, or you can use two different mediums at the same time or on separate occasions.

Can an Employer Be Exempt From Labour Market Testing?

In some cases LMT is not required, but the exemptions are narrow. Occupation-based exemptions that existed under the older 457 visa are not available for 482 or 494 nominations. There are also no exemptions on the basis of skill level or because of a major disaster.

The main exemptions come from Australia’s international trade obligations. Whether one applies depends on the worker’s citizenship or residency, the category they apply under, and sometimes their relationship with your business. Employing someone from a particular country does not automatically make LMT unnecessary. The trade-obligation exemptions also do not apply to nominations under the 494 visa or under a labour agreement.

Alternative submission requirements apply in a few cases, including:

  • Workers with an internationally recognised record of exceptional and outstanding achievement.
  • A new nomination for an existing visa holder only because their earnings have changed, or because of a change in business structure.
  • Intra-corporate transfers.
  • Positions with annual earnings of AUD250,000 or more.
  • Certain medical practitioners and ambulance officers and paramedics.

Establish whether an exemption genuinely applies before you rely on it. Professional advice is worth having here.

Common LMT Mistakes

LMT errors can delay your recruitment or contribute to a refused nomination. Check your campaign against this list before you lodge.

  • Advertising too late, so the four-week period is incomplete or falls outside the four-month window.
  • Using fewer than two advertisements, or using a platform that is not accepted.
  • Leaving out required content, such as the sponsor or agency name, or the salary when earnings are below AUD96,400.
  • Describing a role that does not match the occupation, duties or location in your nomination.
  • Failing to keep copies of the advertisements.
  • Relying on an exemption without checking it applies, or on outdated information.

How to Get Labour Market Testing Right

Treat LMT as part of your recruitment plan rather than an afterthought tacked on to sponsorship. The right advertising, run at the right time and backed by the right evidence, protects your nomination.

Because MYAC brings recruitment and migration together, we can look at your hiring plan and the migration requirements side by side. If you are considering a regional role, our 494 visa page covers the additional regional steps.

Frequently Asked Questions

How long must a job be advertised for labour market testing?

For most 482 and 494 nominations, the position must have been advertised for at least four weeks within the four months immediately before you lodge the nomination. Applications or expressions of interest must be accepted for those four weeks. The advertising can run over overlapping periods that total four weeks.

How many advertisements do I need?

You need at least two advertisements. Since 11 December 2023, employers no longer need to advertise on Workforce Australia, so two valid advertisements are required instead of three. You can place both in the same medium on two separate occasions, or use two different mediums at the same time or on separate occasions.

Can I advertise on my own website?

Only if you are an accredited sponsor. Accredited sponsors can count advertising on their own business website as one of the required advertisements. Other sponsors need to use prominent recruitment websites with national reach, relevant industry-specific sites, national print media or national radio. General classifieds sites and social media alone are not acceptable.

Plan Your Recruitment With MYAC

If you are preparing to sponsor, book a consultation with our team and we will help you plan your advertising and nomination timeline.

Reviewed by a MYAC Migration Agent. This article is general information only and is not migration advice. Speak to a Registered Migration Agent about your circumstances.