Changes to Labour Market Testing Requirements

Following the introduction of new legislation on 12 August 2018, Standard business sponsors are required to demonstrate that they have tested the local market and been unable to locate a suitably qualified or experienced Australian/Permanent Resident for their position, unless it would be inconsistent with International Trade Obligations to do so.

To meet the LMT requirement, Sponsors must generally have:

  • Undertaken LMT during the required period (For a minimum of 4 weeks, in the 4 months immediately prior to lodgement)
  • Undertaken LMT in the required manner Have advertised twice on the same or separate forums; salary (or salary range must be advertised unless higher than $96,400;  skills and experience must be advertised)
  • Provide the required evidence of LMT (Provide a copy of the advertisements
    Satisfy the delegate that there were no suitable Australian’s/Permanent Resident’s for the position

Standard Business Sponsors may be able to provide alternate evidence of LMT for ‘select positions’.  Alternate evidence includes providing a submission explaining why there is no Australian worker available in circumstances including:

  • Where the nominee has an internationally recognised record of exceptional achievement in a profession
  • Where the position has base annual earnings of $250,000 or more.

Generally acceptable methods of advertising are found in the table below. When advertising via recruitment website please note that:

  • Only prominent or professional recruitment websites are acceptable for LMT purposes, these include e.g., SEEK.
  • Industry specific recruitment sites that are in significant use by the industry for nominated occupations are also acceptable
  • LinkedIn’s online recruitment platform is acceptable for LMT purposes, however, vacancies restricted to LinkedIn profile members only are not.
  • There is no requirement that the sponsor placed the advertisement itself.  The sponsor may authorise a third party, eg recruitment company or associated entity to place the advertisements. Advertisements must show either the Standard Business Sponsor’s name, or the Recruitment company’s name.
  • Salary (or salary range) must be advertised if lower than 96,400

Requirements from 12 August 2018
Duration of LMT Minimum of four weeks
Applications must be accepted for four weeks
Period of LMT Four months immediately prior to lodgement
Four months since redundancies
Method of advertising At least two advertisements required
Recruitment website with national reach (including LinkedIn recruitment platform)
Business website of accredited sponsors
Print media/radio with national reach
Information required in the advertisement Position title/description
Salary/salary range (if lower than $96,400)
Company/recruitment agency (company name need not be disclosed if using a recruitment agency)
Skills or experience requirements
Must be in English
Evidence requirements Copy of advertisements
For positions subject to alternative requirements – a submission explaining why an Australian worker is not available
Positions subject to alternative requirements Where a new nomination is required for an existing visa holder because of a change in business structure or pay
Internationally recognised record of exceptional achievement in a profession or field, eg sport, academia and research, top-talent chef
Intra-corporate transferees
Positions with annual earnings of $250,000 or more
Key medical occupations
Exemption to LMT requirement Exemption where international trade obligation applies