LMT: Labour Market Testing Requirements for Australian Employer-Sponsored Visas
Labour Market Testing (LMT) is the requirement for Australian employers to demonstrate they've genuinely tried to fill a position with an Australian worker before nominating an overseas worker for an employer-sponsored visa. It's the government's way of ensuring that employer-sponsored visas aren't being used to bypass local talent. If you're an employer looking to sponsor someone on a subclass 482, 494, or Skills in Demand visa, understanding LMT is essential — getting it wrong can sink your entire nomination.
What Is Labour Market Testing?
At its core, LMT means advertising the position on approved platforms, for a specified period, before lodging a nomination with the Department of Home Affairs. The ads must be genuine, and the position must be offered on terms consistent with what an Australian worker would expect.
The policy rationale is simple: if qualified Australians are available and willing to do the job, the employer should hire them. Only when the labour market can't supply a suitable candidate should an overseas worker be brought in.
LMT isn't about going through the motions. The Department expects employers to genuinely consider any Australian applicants who respond to the advertising. Token advertising — where the job is advertised but local applicants are ignored or dismissed without genuine consideration — can result in a nomination refusal.
Which Visas Require LMT?
LMT is required for most nominations under:
- Subclass 482 — Temporary Skill Shortage (Short-Term, Medium-Term, and Labour Agreement streams)
- Subclass 494 — Skilled Employer Sponsored Regional (Provisional)
- Skills in Demand (SID) visa — under the Core Skills stream, LMT still applies
The requirement attaches to the nomination, not the visa application. The employer is responsible for meeting LMT requirements as part of the nomination process.
Advertising Requirements: What You Must Do
Approved platforms
Your job advertisements must appear on platforms that are genuinely accessible to Australian workers. The Department specifies acceptable advertising channels:
- Workforce Australia (formerly JobActive/jobsearch.gov.au) — this is strongly recommended and often considered essential
- Major online job boards — Seek, Indeed, LinkedIn, CareerOne
- Industry-specific platforms — where relevant to the occupation
- Print media — national or local newspapers (less common now but still acceptable)
You typically need to advertise on at least two different platforms, including at least one that's accessible to the general Australian workforce (not just niche industry boards).
Minimum advertising period
Ads must run for a minimum of 4 weeks (28 days). This must occur within the 4 months immediately before the nomination is lodged.
Here's the timeline in practice:
- You advertise the position for at least 4 weeks
- You consider any Australian applicants
- You determine no suitable Australian worker is available
- You lodge the nomination within 4 months of the advertising start date
Critical timing issue: If you advertise in January but don't lodge the nomination until July, your LMT is stale and you'll need to re-advertise. Keep the gap between advertising and nomination as short as practical.
What the ads must contain
Your advertisements must include:
- Job title matching the nominated ANZSCO occupation
- Description of duties consistent with the nomination
- Location of the position
- Salary range or indication of remuneration (must meet the Temporary Skilled Migration Income Threshold — TSMIT)
- Skills and experience required
- Contact information for applications
The ad shouldn't be so narrowly tailored that only the overseas worker you've already identified could possibly qualify. If the ad requires "5 years' experience working at XYZ Company in Mumbai," that's a red flag.
Evidence You Need to Keep
When you lodge the nomination, you'll need to provide evidence of your LMT. Keep the following:
- Screenshots or copies of each advertisement, showing the platform, the content, and the dates displayed
- Receipts or confirmation emails from the advertising platforms
- Records of applications received — how many Australians applied, and why they weren't suitable
- Notes on interviews conducted with local applicants (if any)
- Explanation of why no suitable Australian worker was found
The Department may request any of this evidence during processing. Having a clear, documented trail makes the process smoother.
Exemptions from LMT
Not every nomination requires labour market testing. Exemptions exist in several circumstances:
International trade obligations
Australia's free trade agreements with certain countries exempt nominations from LMT requirements. These include:
- China-Australia Free Trade Agreement (ChAFTA) — for Chinese nationals
- Japan-Australia Economic Partnership Agreement (JAEPA) — for Japanese nationals
- Korea-Australia Free Trade Agreement (KAFTA) — for South Korean nationals
- ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) — for ASEAN nationals in certain circumstances
If the nominated worker is a citizen of one of these countries and the occupation falls within the trade agreement's scope, LMT may not be required.
High salary exemption
If the nominated position offers a salary above a specified high-income threshold (this has historically been set at or around $250,000 per year), LMT may be waived. The logic is that positions at this salary level are inherently specialised and the labour market for them is global.
Under the Skills in Demand visa framework, the Specialist Skills stream (for high-salary positions) doesn't require LMT.
Labour agreements
Some industry-specific labour agreements have modified or reduced LMT requirements, negotiated between the industry and the Department.
Other exemptions
Intra-company transfers and certain other specific circumstances may also attract LMT exemptions. Your migration agent can advise whether an exemption applies to your situation.
LMT Under the Skills in Demand Visa
The Skills in Demand (SID) visa, which has been replacing the 482, retains LMT for the Core Skills stream. This stream covers occupations on the Core Skills Occupation List (CSOL) that don't meet the high-salary threshold.
For the Specialist Skills stream (where salary exceeds the specialist threshold), LMT is not required. The reasoning is that very high-paying positions are assumed to be genuinely specialist, and the salary itself acts as a proxy for genuine need.
For the Essential Skills stream (lower-paid occupations in essential industries), LMT requirements and any modifications are set out in the relevant labour agreements and industry frameworks.
Common LMT Mistakes That Kill Nominations
Advertising too early
You advertised 6 months before lodging the nomination. By the time you nominate, the advertising falls outside the 4-month window. Result: refusal.
Not using approved platforms
You posted the job on your company website and your Facebook page. Neither qualifies as an approved platform. Result: refusal.
Ads that don't match the nomination
You advertised for a "Senior Developer" but nominated the worker as a "Software Engineer" under a different ANZSCO code. The mismatch raises questions. Result: potential refusal or request for further information.
Token advertising
You advertised the job but already had the overseas worker lined up and didn't genuinely consider any Australian applicants. If the Department identifies this pattern (or a disgruntled Australian applicant complains), the nomination can be refused and your sponsorship flagged.
Insufficient evidence
You conducted the advertising properly but didn't keep screenshots or records. When the Department asks for evidence, you can't provide it. Result: nomination may be refused for lack of evidence, even though you actually did the right thing.
How the Department Assesses LMT
Case officers reviewing your nomination will look at:
- Were the ads placed on compliant platforms?
- Were they displayed for the minimum period?
- Were they within the 4-month window before nomination?
- Did the ads accurately reflect the position being nominated?
- Were the terms of employment reasonable and consistent with market rates?
- Were Australian applicants genuinely considered?
- Is the explanation for not hiring locally credible?
The Procedures Advice Manual (PAM) provides internal guidance to case officers on how to assess LMT evidence. Understanding what case officers are looking for can help you present stronger nominations.
Practical Tips for Employers
- Start advertising early in your recruitment process — don't treat it as an afterthought
- Keep evidence from day one — screenshot everything, save all emails
- Use Workforce Australia as one of your platforms — it carries weight with the Department
- Be genuine — if an Australian applicant is suitable, hire them
- Document your decision-making — write down why each local applicant wasn't suitable
- Lodge the nomination promptly after advertising — don't let the 4-month window lapse
- Get professional advice from a registered migration agent if you're unsure about your obligations
Related Resources
- SAF Levy Explained — the levy employers pay when nominating a worker
- Skilled Occupation Lists — checking whether the occupation is eligible
- ANZSCO Codes — getting the right occupation code for your nomination
- ImmiAccount Explained — lodging nominations online
- PAM: Procedures Advice Manual — understanding how case officers assess nominations
