Labour Market Testing (LMT) Checklist
Navigating Labour Market Testing (LMT): Your Essential Guide to Sponsoring Staff in Australia
Sponsoring an overseas worker for an Australian visa can be a complex yet rewarding process. However, for most employer-sponsored visas, such as the Subclass 482 (Temporary Skill Shortage) visa and the Subclass 494 (Skilled Employer Sponsored Regional) visa, employers must first meet the strict requirements for Labour Market Testing (LMT).
LMT is a mandatory process that demonstrates a genuine and reasonable effort to find a suitable Australian citizen or permanent resident to fill a full-time position before you can sponsor an employee in Australia. Getting this step right is crucial for a successful visa nomination.
This comprehensive checklist will guide you through the mandatory requirements, help you avoid common pitfalls, and ensure your LMT efforts are fully compliant.
1. Is Labour Market Testing Required?
Before you begin advertising, confirm that LMT is a requirement for the occupation and visa pathway you're considering. While LMT is a core part of most skilled visas, some LMT exemptions Australia may apply.
International Trade Obligations (ITOs): Certain occupations or nationalities may be exempt from LMT under Australia's free trade agreements.
High-Income Earners: Positions with an annual salary of at least AUD$250,000 may have different LMT requirements.
Labour Agreements: Some occupations under an approved Labour Agreement may have LMT concessions.
If an exemption does not apply, you must proceed with the LMT process.
2. Advertising Requirements: The Foundation of Your LMT
A compliant visa sponsorship job advertisement is the cornerstone of your LMT evidence. Getting the details right is non-negotiable.
Number & Duration: You must place at least two distinct advertisements. These ads must run for a minimum of 28 consecutive calendar days. This advertising period must fall within the four months immediately before you lodge your visa nomination application.
Platforms / Media: The ads must be on prominent or professional recruitment websites with a national reach.
Accepted Platforms: Use major online job boards like SEEK, Indeed, and LinkedIn's online recruitment platform. Ads in national print media or on national radio are also considered compliant. Industry-specific job boards can also be used if they are reputable and widely used within the industry.
Unacceptable Platforms: Advertising on general classifieds websites (like Gumtree) or solely through social media notifications (e.g., a post on a company's Facebook page) is not compliant.
Role Type: The advertised role must be for a genuine, full-time position. Ads for a casual or short-term role will not meet the LMT requirements.
3. Content of the Job Ad: What to Include
Your job ad is a key piece of evidence for Labour Market Testing and must contain all the following mandatory elements:
Position Title: A clear and accurate title or description of the role.
Skills & Experience: The essential qualifications and experience required for the position.
Location: The location where the job is based.
Remuneration: The annual salary or a salary range for the position must be included if the annual earnings are below AUD$96,400.
Sponsor Name: The name of the sponsoring business or the recruitment agency acting on its behalf.
4. Documentation & Record-Keeping: Your LMT Compliance Checklist
You must be able to prove that you met all the Labour Market Testing requirements. This means meticulous record-keeping is essential.
You should retain all evidence, including:
Screenshots or copies of each ad, clearly showing the start and end dates.
URLs or links to the online ads.
Invoices or receipts for ad placements.
An internal recruitment report detailing the applicant review process.
A summary report explaining why all local candidates were deemed unsuitable, with clear and documented reasons for rejection.
5. Common Pitfalls and Rejections
Many visa applications are refused due to LMT errors. Avoid these common mistakes:
Incomplete Ads: Omitting crucial details like the salary (if required) or the name of the sponsoring business.
Incorrect Platforms: Using a non-compliant or niche job board that doesn't have national reach.
Advertising for the Wrong Duration: Running ads for less than the mandatory 28 days.
Lack of Evidence: Failing to keep solid, retrievable evidence of the ads and recruitment process.
Unreasonable Requirements: Creating an ad with unrealistic or discriminatory job requirements designed to exclude Australian candidates.
Backdating: Ads must be completed before you lodge the nomination. You cannot backdate or use outdated ads.
Final Self-Check Before Nomination
Before you submit your application, use this quick checklist to ensure your LMT efforts are solid:
✅ Did you run at least two ads on compliant platforms?
✅ Did each ad run for a minimum of 28 consecutive days?
✅ Did the advertising period fall within the four-month window before your nomination lodgement?
✅ Do your ads contain all mandatory information, including the salary (if applicable) and your business name?
✅ Is all your documentation (screenshots, invoices, reports) stored and easily accessible?
✅ Did you genuinely consider all Australian applicants and can you clearly document the reasons for their rejection?
By following these guidelines, you'll be well on your way to a successful skilled visa nomination in Australia and securing the talent your business needs. For complex cases or to get professional assistance with your visa application, it is always recommended to consult with a registered migration agent.
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Source: AU Visas Employer Guide Series
The content provided is here is for informational purposes only and does not constitute immigration or legal advice. It is subject to change. Consult an Australian MARA registered agent or lawyer for professional advice before making any application
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Glossary of Key Terms
Labour Market Testing (LMT)
The process where an employer advertises a position in Australia to show they genuinely tried to hire an Australian citizen or permanent resident before sponsoring an overseas worker.Skills in Demand (SID) / Subclass 482 Visa
A temporary skilled visa (previously called the TSS 482 visa) that allows approved employers to sponsor skilled overseas workers to fill positions they can’t fill locally.
Subclass 494 – Skilled Employer Sponsored Regional (Provisional) Visa
A provisional visa that lets regional employers sponsor skilled workers to live and work in designated regional areas of Australia. LMT is generally required.International Trade Obligations (ITOs)
Exemptions to LMT that apply under certain free trade agreements. For eligible nationals and roles, LMT may not be required if the nomination meets the terms of the relevant agreement.Labour Agreement
A formal agreement between an employer (or industry) and the Australian Government that allows sponsorship of overseas workers in circumstances not covered by standard visa programs, sometimes with concessions to standard requirements.Standard Business Sponsor (SBS)
An employer approved by the Department of Home Affairs to sponsor overseas workers on certain visas, such as the 482 and 494.
Compliant Advertising Platform
A job board or medium with national reach (e.g. SEEK, Indeed, LinkedIn’s jobs platform, reputable industry job boards, national print, or radio) that meets LMT requirements. General classifieds and social posts alone are not accepted.Advertising Period
The minimum time that LMT job advertisements must run. For most 482 and 494 nominations, at least two ads must run for at least 28 consecutive days within the four months before lodging the nomination.High-Income LMT Exemption
Some LMT concessions may apply for very high-salary roles (e.g. AUD $250,000+), depending on the instrument and circumstances.Skilling Australians Fund (SAF) Levy
A training levy paid by sponsoring employers when lodging certain nominations. If a nomination is refused due to LMT errors, the levy is usually not refunded, so getting LMT right is financially critical.
