What is Labour Market Testing?

What is Labour Market Testing (LMT)?

Labour Market Testing (or position advertising) is a critical part of the Subclass 482 – Temporary Skill Shortage visa Business Nomination process. In many cases, employers must advertise the position on two recruitment websites with national reach or other forums for a period of 28 days in the 4 months before lodging the Nomination.

For some situations, exemptions to the requirement are available. However, it is important that employers adequately evidence the basis for the exemption in the Business Nomination application or risk refusal and loss of the substantial application fees. There are two main types of exemptions “Select Circumstances” exemptions and International Trade Obligation (ITO) exemptions. Please note that this list changes frequently so please contact us to discuss before proceeding with an application.

Labour Market Testing (LMT) Exemptions

Select circumstances exemptions

Exemptions are available in the following circumstances:

  • Intra-corporate transferees where a person is transferring from a company operating overseas to an associated entity in Australia;
  • If the annual earnings of the position are at least $250,000;
  • Nominations required by change of business structure or change of earnings of nominee;
  • Positions requiring persons with internationally recognised skills in sport, academia or cuisine;
  • Medical Practitioners in ANZSCO Minor Group 253, except ANZSCO 253111 and 253999;
  • Ambulance Officers and Paramedics in ANZSCO Unit Group 4111.

International trade obligations (ITOs) exemptions

Labour Market Testing is not required where it would conflict with Australia’s international trade obligations, in any of the following circumstances:

  • the worker you nominate is a citizen/national of China, Japan, Mexico, Thailand or Vietnam, or is a citizen/national/permanent resident of Canada, Chile, South Korea, New Zealand or Singapore

* the following additional countries citizens are exempt due to Free Trade Agreements – Indonesia, Hong Kong, Malaysia and Peru as of 28 January 2020

  • 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 or New Zealand
  • 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 international trade obligations 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 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 international trade obligations
  • 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 to nominations lodged under a Labour Agreement.

*eligible permanent residents in this circumstance include permanent residents of Armenia, Canada, New Zealand or Switzerland.

For the purposes of international trade obligations, the following occupations are considered to be Executives or Senior Managers.

  • Advertising Manager
  • Chief Executive or Managing Director
  • Chief Information Officer
  • Corporate General Manager
  • Corporate Services Manager
  • Finance Manager
  • Human Resource Manager
  • Sales & Marketing Manager
  • Supply and Distribution Manager

If you require further information on Labour Market Testing Exemptions, please contact our team at [email protected]

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