For certain visa types a sponsor must demonstrate to the Department that they are unable to find a suitable Australian worker to fill the role. In these applications, the sponsor will need to provide evidence that they have tested the local labour market. Subclass 482 nomination applications are subject to a specific requirement to provide evidence of labour market testing (LMT) unless one of the following exemptions apply:
- international trade obligations; and
- specified exemptions.
Alternatively, if the occupation is a “select” occupation or position, then less onerous evidence of LMT can be provided.
1. What are the international trade obligations?
The LMT obligations for immigration purposes do not apply when it is inconsistent with Australia’s international trade obligations. These obligations relate to Australia’s commitments under Free Trade Agreements (FTAs) as well as the World Trade Organization (WTO) General Agreement on Trade in Services (GATS) (see here).
Currently, a person will be exempt if any of the following categories of people who also meet the jurisdictional requirements:
Categories of people |
Jurisdictional requirements |
Citizens of certain countries |
Citizens from Brunei, Canada, Chile, China (excluding Hong Kong, Macau and Taiwan), Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, South Korea, Thailand, the United Kingdom, or Vietnam |
Permanent residents of certain countries |
Permanent residents from Canada, Chile, South Korea, New Zealand, Singapore, or the United Kingdom |
Employees of associated entities of the sponsor where the associated entity is located in certain countries |
Associated entities in Canada, Chile, China, Japan, Mexico, South Korea, the United Kingdom, New Zealand, Peru, Samoa, Tuvalu, Kiribati, Tonga, Solomon Islands, Niue, the Cook Islands, Vanuatu, or any ASEAN nation (Brunei, Myanmar, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand or Vietnam) |
The individual is:
|
The associated entity operates in a WTO country (see here for list) |
The individual is:
|
The overseas business sponsor operating in a WTO member country (see here for list)
|
The individual is being nominated by an employer for whom they have worked in Australia on a continuous, full-time basis for two years immediately before the nomination is lodged. This means that LMT would not be required for a new nomination lodged by the same sponsor or an associated entity of that sponsor provided that:
LMT might also not be required if the person is nominated for a different position with the business but has a specialised knowledge at an advanced level of a proprietary nature of the company’s obligations |
The nominee is a citizen, or an eligible permanent resident of a WTO member country (see here for list of such countries) |
2. What are the specified exemptions?
There are also two specified exemptions from the LMT requirements:
- the Minister may, in writing, exempt a sponsor from the requirement to undertake LMT if a major disaster has occurred in Australia that has such a significant impact on individuals that a government response is required, and the exemption is necessary or desirable in order to assist disaster relief or recovery. Exemptions under this provision must be expressed to apply to a particular sponsor, and may be expressed to apply in relation to a specified nomination or class of nominations by that sponsor. To date, no such exemption has been provided.
- The Migration Act provides for exemptions where an occupation is specified by legislative instrument. There are currently no occupations specified.
3. What are the select occupations / positions and what is the alternative evidence that can be provided?
The legislative instrument referred to as (LIN18/036) outlines certain ‘select occupations’ and ‘select positions’ for whom standard LMT requirements regarding manner, period and timing do not apply. Instead these occupations are required to provide alternative evidence in the form of submissions.
These occupations/positions, along with the required submissions, are detailed below:
Select occupations and positions |
Alternative evidence required |
A position that requires the occupant to have an internationally recognised record of exceptional and outstanding achievement in a profession or field, such as, sport, academia or research, or as a top-talent chef |
A submission should explain why the specific individual nominated is the only person, or one of very few people, who could undertake the nominated position |
A position that will be filled by a person who is:
|
A submission should explain the need for the transfer and documentation outlining the transfer arrangement |
A position that is held by a TSS or Subclass 457 visa holder for which a new nomination has been lodged solely because:
|
A submission should explain that the position is already filled by an existing TSS or subclass 457 visa holder, but give reasons why a new nomination is required (for example, due to a business restructure) |
A position for which the annual earnings of the occupant will be equal to or greater than AUD 250,000 |
A submission should explain the methods of testing the local labour market. For example, how you found the overseas worker via an executive search process which including inviting applicants from Australia |
A position that falls within ANZSCO Minor Group 253 – Medical Practitioners (that is not ANZSCO 253111 – General Medical Practitioner or ANZSCO 253999 – Medical Practitioners nec) or ANZSCO Unit Group 4111 – Ambulance Officers and Paramedics |
A submission should explain the methods of testing the local labour market. For example, how you found the overseas worker via an executive search process which including inviting applicants from Australia |
If the exemptions or alternative evidence do not apply, then what are the requirements to meet the LMT obligations?
When / How Long? |
Manner |
Within the 4 month period which ends on the day on which the nomination application is lodged
The advertisement must have accepted applications or expressions of interest for at least four weeks after it was first published
|
The advertisement must be in English At least two advertisements in any of the below mediums:
The advertisement must include the following details
Note: it is acceptable to publish a salary range – for example AUD80,000 to AUD90,000 |
Frequently asked Questions
Hannan Tew Lawyers assist with employer sponsored visa applications for numerous organisations from local start-ups to global giants. Each organisations LMT obligations are unique, but this FAQ provides some quick answers:
My organisation is looking to nominate someone who already holds a 457 / TSS visa. Do we still need to undertake LMT?
My organisation is looking to undertake an intra company transfer (transferring staff from overseas to Australia). Do we still need to undertake LMT?
Do we need to do LMT when we “renew” a TSS / 457 visa?
Do we need to disclose salary in job advertisements for LMT?
How long do I need to advertise to satisfy LMT requirements?
Need further information?
The LMT proces can be complex, and simple omissions can lead to nomination refusal. If you are an employer seeking more clarification about the LMT requirements, feel free to contact us by email at [email protected] or phone +61 3 9016 0484 to obtain further guidance.
Hi
For 186 direct entry stream is the below LMT exemption applicable?
The individual is being nominated by an employer for whom they have worked in Australia on a continuous, full-time basis for two years immediately before the nomination is lodged. This means that LMT would not be required for a new nomination lodged by the same sponsor or an associated entity of that sponsor provided that:
the visa applicant / holder will be staying in the same nominated position and either:
the new sponsor is still an associated entity of the original sponsor or
the employer has stayed in the same position (that is, even if the company has ceased to exist)
LMT might also not be required if the person is nominated for a different position with the business but has a specialised knowledge at an advanced level of a proprietary nature of the company’s obligations
The nominee is a citizen, or an eligible permanent resident of a WTO member country (see here for list of such countries)
Please clarify
Thanks
Vishnu
Hi Vishnu,
The LMT legislative instrument actually only covers the 482 visa (whilst the ENS LMT is covered under policy under “genuine temporary entrant”). As such, if you have adequate evidence of genuine temporary entrant critieria you might not need to do LMT for an ENS application.
Feel free to contact us at [email protected] if you’d like to discuss further.
Kind regards,
Hannan Tew
Hi,
I own a small business which has been operating for 4 years.
I was considering self sponsorship for 186. Do I need LMT as a Managing Director of the business as the position will remain the same.
Hi Samuel,
The Managing Director position is usually not exempt from LMT unless there is an intra company transfer.
The Department will also scrutinise self-sponsorship, so be aware of this when preparing your application.
Feel free to contact one of our lawyers at [email protected] if you’d like to discuss further.
Kind regards,
Hannan Tew
Hi,
I was wondering that LMT testing should be before approval of a nomination (before lodge of nomination) or after that?
I mean if I have an approved nomination then does it mean that LMT has passed?
Thanks
Vishnu
Hi Reza,
Yes, the LMT is connected to the nomination application so if you’ve obtained nomination approval, it generally means that the Department has accepted the LMT evidence (or accepted that it was not required).
Let us know if you require assistance with the visa.
Kind regards,
Hannan Tew
Hi Mihan, I hope you’ve had a good start to the year. 🙂
Thanks for this comprehensive yet comprehensible article.
In the first exemption section (1. What are the international trade obligations?), the last of the categories (Categories of people) in the table reads “continuous, full-time basis for two years”. Does this mean that an employee that has been employed on a fixed full-time term basis for two years is not eligible? Is “continuous” referring to a permanent contract or employment without any breaks?
Hi Preshith,
Thanks for reaching out, and glad you found the article helpful.
That obligation is to capture people who are already on TSS visas, so fixed term contract employees can still fall under it as long as they have continued working for at least two years. Standard annual leave / sick leave etc can also count towards the two years.
Feel free to get in touch with us at [email protected] if you’d like to discuss.
Kind regards,
Hannan Tew
Appreciate the comprehensive information presented on your website. The provided article clearly demonstrates your extensive subject knowledge.
I have a slight confusion on my possible visa option, Could you kindly clarify it?
I am on 482 visa and is in Australia. The employer has not extended my 482 visa, which will expire on April 25, 2024. Although another employer is willing to sponsor, they insist that they have to complete the LMT process, which will take approximately 30-35 days, before proceeding with the nomination application.
Is it permissible to remain in the country without a visa for an additional time ie from the expiry of the existing 482 to until the next visa application is made by the new employer) , Is there any other visa that i can apply to cover the gap
4) As I am currently on a 482 visa with another employer do the new employer really need to follow LMT ( I am from India originally)
Hi Jommy,
You should get the LMT initiated as soon as possible as you can only stay in Australia after 25 April 2024 if you’ve lodged another visa prior to that date.
Feel free to contact us at [email protected] to discuss.
Kind regards,
Hannan Tew