Labour Market Testing: Process, Employer Requirements, Markert Salary Requirements, and Exemptions
- Mar 1
- 4 min read
Labour Market Testing (LMT) is the requirement that ensures employers genuinely attempted to hire Australian Citizens or permanent residents before sponsoring a foreign worker. This involves advertising the position, assessing applicants, and documenting recruitment efforts.
In Australia Labour Market Testing is generally required for employer sponsored visas like Temporary Skill Shortage Visa (Subclass 482) and some streams of the Employer Nomination Scheme Visa (Subclass 186).
Process of Labour Market Testing:
Labour Market Testing (LMT) is a key step for employers in Australia before sponsoring overseas workers. It ensures that there are no suitable local candidates available for the role. The process of Labour Market Testing is mentioned below:
Advertisement of the Job Position:
The employer must advertise the job in the national recruitment platforms, industry specific recruitment channels, or professional recruitment agencies so that the local residents have the opportunity to apply.
The advertisement must clearly mention
The job title
Skills and qualifications required
Duties and Responsibilities
Salary
Name of the employer
Where the Job must be Advertised:
Employer is required to publish the job advertisement on at least two approved platforms, which may include:
The Australian Government job portal Workforce Australia
National recruitment websites (eg Seek, Indeed)
Professional Recruitment platforms
National newspapers or industry publications
Duration of Advertisement:
The job advertisement must:
Run for at least 28 consecutive days
Be published within four months before lodging the nomination application
This proves that the sponsor genuinely tried to recruit an Australian citizen and permanent residents before turning to international recruitment.
Assessing the Local Candidates:
During the recruitment process, employers must review applications from Australian Citizens and permanent residents. They must show that no suitable local candidate is available for the given position.
If the applicants who applied into the jobs were rejected, employer must provide clear reasons such as:
Lack of required qualifications
Insufficient experience
Inability to perform the required job duties
Evidence Submission:
Employers must submit the following documents to Department of Home Affairs while making the nomination application.
Copies or screenshots of job advertisements
The date the advertisement was posted and removed
Details of the recruitment platforms that has been used
Records of applications received and reasons for rejection
Market Salary Requirements
The employer must demonstrate that the foreign worker will receive a salary equivalent to what an Australian worker would receive for the same job. This requirement prevents wage exploitation and protects local labour standards.
Annual Market Salary Rate (AMSR):
The employment must demonstrate that the salary offered matched the market rate for that occupation in Australia.
Temporary Skilled Migration Income Thresholds (TSMIT):
For employer-sponsored visas (Subclass 482) visa, the salary must meet the minimum threshold fixed by the government. The amount changes periodically.
Employer must offer higher amount between the AMSR and TSMIT.
Skill Australian Fund (SAF) Levy
In addition to Labour Market Testing requirements, employers sponsoring foreign workers must pay the Skilling Australians Fund (SAF) Levy. This fee contributes to training programs for Australian workers.
The SAF levy amount depends on the size of the business:
For the business with an annual turnover below AUD 10 million: AUD 1,200 per year for each nominated worker.
For the business with annual turnover of AUD 10 million or more: AUD 1,800 per year for each nominated worker.
The levy must be paid upfront at the time of nomination and covers the entire visa duration.
Exemption of Labour Market Testing
In certain situation, Labour Market Testing may not apply. These exemptions may occur when:
International trade agreements require labour mobility
The occupation falls under specific high-level executive roles
The position is part of an intra-company transfer
Trade agreements between Australia and countries such as United States, Japan, and South Korea may provide exemptions in some circumstances.
FAQs
1. What is Labour Market Testing (LMT) in Australia?
Labour Market Testing (LMT) is a requirement for employers to demonstrate that they genuinely tried to hire Australian citizens or permanent residents before sponsoring a foreign worker. It involves advertising the role, assessing applicants, and documenting recruitment efforts.
2. Which visas require Labour Market Testing?
LMT is generally required for employer-sponsored visas such as the Temporary Skill Shortage (Subclass 482) visa and some streams of the Employer Nomination Scheme (Subclass 186) visa.
3. How long must a job advertisement run for LMT purposes?
The job must be advertised for at least 28 consecutive days and published within four months before lodging the nomination application.
4. Where should the job be advertised?
Employers must advertise on at least two approved platforms, which can include:
Workforce Australia (Australian Government job portal)
National recruitment websites like Seek or Indeed
Professional recruitment platforms or industry publications
National newspapers
5. What details must be included in the job advertisement?
The advertisement must clearly mention:
Job title
Skills and qualifications required
Duties and responsibilities
Salary
Employer name
Final Thoughts
Labour Market Testing serves various purpose as it protects the job opportunities for Australian worker, prevents labour exploitation, ensures migration programs address genuine skill shortages, and maintain transparency in recruitment process.
Combined with requirements such as Skill Australians Fund Levy and Market Salary thresholds, Labour Market Testing helps maintain fairness, transparency, and integrity in Australia’s employer-sponsored migration programs. While employers can attempt this process on their own, the task becomes much easier and more accurate when guided by legal experts who understand visa requirements and compliance.
Need Legal Help or Consultation?
If you have any questions, concerns, or requests related to the legal matter, please contact us at:
Emigrate Lawyers
Email: info@emigratelawyers.com
WhatsApp: 0458 745 646
Phone: 1300 807 134
Text Us: 0483 959 572
Writer: Rubhita Dudharaj BK
Position: Legal Officer at Emigrate Lawyers
Licensed Advocate of Nepal
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