Labour Market Testing Requirements for Employer Sponsorship

Labour Market Testing Requirements for Employer Sponsorship

Labour market testing (LMT) requires Australian employers to advertise a position and attempt to fill it with an Australian worker before sponsoring an overseas worker. The advertising must be recent (within the last 4 months), genuine, and placed on platforms that Australian workers would reasonably use. The employer must keep evidence of the ads and any responses received. LMT applies to most employer-sponsored visa nominations but is waived for certain high-salary positions and specific international trade agreements.

Quick Facts

What Is Labour Market Testing?

LMT is the government's mechanism to ensure that employer sponsorship doesn't displace Australian workers. Before sponsoring an overseas worker, the employer must demonstrate that they tried — genuinely — to find a suitable Australian worker first.

This isn't just a box-ticking exercise. The Department of Home Affairs assesses whether the advertising was genuine and whether the employer gave fair consideration to Australian applicants. Placing a deliberately unattractive ad or one designed to discourage local applicants won't satisfy LMT requirements.

Advertising Requirements

Where to Advertise

The nomination must include evidence of advertising on at least two platforms:

At least one must be a national recruitment platform:

• Seek (seek.com.au)
• Indeed (au.indeed.com)
• LinkedIn
• CareerOne
• Jora
• Workforce Australia (government job board)

The second can be:

• Another national platform
• An industry-specific job board
• A professional association job board
• A local newspaper or regional job board

What the Ad Must Include

Each advertisement must contain:

• Position title matching the nominated occupation
• Salary — at least the TSMIT ($73,150) or market rate
• Location of the position
• Key responsibilities and duties
• Skills and qualifications required
• How to apply

The ad should be written to attract Australian applicants, not to deter them. Using unnecessarily restrictive criteria (e.g., requiring a specific foreign qualification that Australian candidates wouldn't hold) suggests the LMT isn't genuine.

Duration

Each advertisement must be active for at least 4 weeks (28 days). The advertising period must have concluded within the 4 months before the nomination is lodged.

Timeline example:

• Ads placed: 1 January – 28 January
• Nomination lodged: Must be before 28 May (within 4 months of ad placement)

Evidence Requirements

When lodging the nomination, the employer must provide:

Advertising Evidence

• Screenshots of each advertisement (showing the platform, content, and dates)
• URLs of the online ads (if still accessible)
• Start and end dates of each advertisement
• Proof of publication (confirmation emails from job boards, receipts)

Response Evidence

• Number of applications received
• Summary of how applicants were assessed
• Reasons for not selecting Australian applicants
• Interview records (if interviews were conducted)

Declaration

A declaration from the employer confirming that LMT was conducted genuinely and that no suitable Australian worker was available.

Exemptions from LMT

Specialist Skills Stream ($135,000+)

Positions with an annual salary of $135,000 or more under the Specialist Skills stream are exempt from LMT. The high salary is considered sufficient evidence of genuine need — the reasoning being that if an employer is willing to pay $135,000+, they've already been unable to fill the role locally.

International Trade Agreements

Workers from certain countries may be exempt from LMT under Free Trade Agreements (FTAs). Relevant agreements include:

• China-Australia FTA (ChAFTA)
• Japan-Australia Economic Partnership Agreement (JAEPA)
• Korea-Australia FTA (KAFTA)
• ASEAN-Australia-New Zealand FTA (AANZFTA)

These exemptions apply to specific visa types and conditions — not all sponsorships from these countries are exempt.

International Obligations

Some positions are exempt due to Australia's international obligations, including:

• Intra-company transferees under certain trade agreements
• Workers covered by bilateral agreements

Common LMT Mistakes

Insufficient Advertising

Mistake: Advertising on one platform instead of two, or for less than 4 weeks. Consequence: Nomination refused.

Stale Advertising

Mistake: Using ads that are more than 4 months old at the time of nomination. Consequence: Nomination refused — need to re-advertise.

Sham Advertising

Mistake: Deliberately designing ads to discourage Australian applicants (unrealistic requirements, unattractive presentation, burying the ad on obscure platforms). Consequence: Nomination refused, potential sponsor sanctions.

Missing Documentation

Mistake: Not keeping screenshots or records of the advertising and responses. Consequence: Unable to prove LMT was conducted — nomination at risk.

Tailored Job Requirements

Mistake: Writing the job ad to match the specific overseas candidate's profile so closely that no Australian could reasonably apply. Consequence: Department may assess the LMT as not genuine.

What the Department Looks For

Case officers assess LMT holistically. They consider:

• Were the platforms appropriate? An ad on an obscure forum doesn't satisfy LMT. Use mainstream job boards that Australian workers actually use.
• Was the ad genuine? The position description, requirements, and salary should be realistic and consistent with the occupation.
• Were Australian applicants fairly considered? If 50 Australians applied and all were rejected, the employer needs to explain why.
• Is the overseas worker filling a genuine gap? The employer should demonstrate that the overseas worker has skills or experience that Australian applicants lacked.

Frequently Asked Questions

Does social media advertising count?

A Facebook post or LinkedIn share can count as one of the two platforms if it's an active, properly formatted job advertisement. However, it shouldn't be the sole national platform — pair it with a traditional job board.

Can I use the same LMT for multiple nominations?

If you're nominating multiple workers for the same position type, one round of advertising can support multiple nominations, provided all nominations are lodged within the 4-month window.

What if an Australian applied and was qualified?

You'd need to explain why you didn't hire the Australian candidate. If a suitable Australian worker is available, the nomination should not proceed — that's the entire point of LMT.

Do I need to keep records of unsuccessful applicants?

Yes. Keep records of all applications received, how they were assessed, and why they were unsuccessful. This evidence may be requested during the nomination assessment.

Is LMT required for visa renewals?

If the employer is nominating for a new visa (even for the same worker and same position), fresh LMT is typically required. Renewing a nomination within the same visa period may have different requirements.