Understanding Labour Market Testing (LMT) in Australia

Vikrant Gungash
Aug 19
3 min read

By Vikrant Singh, August 19 2025

When an Australian business wants to sponsor an overseas worker for certain visas, they first need to prove that no suitable local worker is available for the job. This process is called Labour Market Testing (LMT).

LMT is designed to ensure Australian citizens and permanent residents are given the first opportunity to fill available positions before employers look overseas.

When is LMT required?

LMT is required for many employer-sponsored visas, including:

Skills in Demand visa (subclass 482) – Core Skills and Specialist Skills streams
Skilled Employer Sponsored Regional (Provisional) visa (subclass 494) – Employer Sponsored stream

If you’re nominating a worker, you usually need to provide proof that you advertised the role in Australia before applying.

Advertising Requirements

From 11 December 2023, the rules were updated:

Employers only need two valid advertisements (previously three).
Advertising must happen within the 4 months before lodging the nomination.
If a local worker was made redundant from the role within 4 months, advertising must be done after that redundancy.

Each job ad must:

Be in English and published in Australia
Clearly state:
- Job title or description
- Required skills/experience
- Name of the sponsor or recruitment agency
- Salary (if under AUD 96,400 – a salary range is acceptable)

Where to advertise

Valid options include:

Major online job sites with national reach (e.g. Seek, LinkedIn Jobs)
Industry-specific recruitment websites
National print media (newspapers, magazines)
National radio
The sponsor’s own website (if they are an accredited sponsor)

Social media posts or general classifieds sites (like Gumtree) are not valid.

Each advertisement must:

Run for at least 4 weeks
Accept applications for at least 4 weeks

Labour Agreement Stream

If you are sponsoring under a Labour Agreement (482 or 494 visas), you must also meet LMT requirements unless exemptions apply.

From 11 December 2023, businesses in Category 2 locations also need only two valid ads, the same as the standard program.

Some industries, like aged care, may have special arrangements (e.g. a Memorandum of Understanding with unions).

Exemptions from LMT

LMT is not always required. Exemptions may apply under:

International Trade Obligations (ITOs)

LMT can be waived if the nominee is from certain countries with trade agreements with Australia, including:

Brunei, China, Japan, Malaysia, Mexico, Peru, Thailand, Vietnam
Canada, Chile, South Korea, New Zealand, Singapore, UK

Other exemptions include:

Transferring executives/senior managers within multinational companies
Setting up a new branch of a foreign business in Australia
Employees who already worked in the nominated position for 2 years

Special Cases

LMT may also be waived if:

The nominee has an internationally recognised record of outstanding achievement (e.g. top athletes, researchers, chefs)
The annual salary is AUD 250,000 or more
The nominee is a doctor, paramedic, or ambulance officer, where a written justification is allowed instead of advertising

Why is LMT important?

LMT balances the needs of Australian employers and workers:

For employers: It allows access to skilled overseas workers when there are genuine shortages.
For local workers: It ensures Australians get the first chance to apply for available jobs.

Key takeaway: If you’re an employer wanting to sponsor a worker under the 482 or 494 visa, make sure you run two valid ads for at least 4 weeks, include all required details, and lodge the nomination within 4 months of advertising.

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