Labour Market Testing (LMT) in Australia: A complete guide

Labour Market Testing (LMT) is a crucial requirement when advertising for certain visas in Australia. It involves advertising a nominated position in Australia as per the Department of Home Affairs (DOHA) requirements.  

This article provides essential information on Labour Market Testing (LMT) in Australia. Key information in this article:    

• Purpose of Labour Market Testing  

• Who needs to conduct LMT 

• Evidence required for LMT 

• Best practices 

What is the purpose of Labour Market Testing (LMT)?

The purpose of LMT is that it allows the employer to test the local market with the aim of finding a qualified and experienced Australian citizen or permanent residence for the role. The LMT demonstrates proof that as an employer, you are devoting resources to find a suitable Australian worker. If you fail to do so, you are required to prove that you cannot find a suitable Australian employee for the nominated position.  

Overall, the process helps to:  

• Create a transparent recruitment process 

• Protect the interests of local Australian workers by providing them with access to job opportunities. 

• Promote fair wages and accurate job descriptions  

• Aligns the needs of the local markets with the organisation 

Who needs to conduct Labour Market Testing?  

A sponsoring or nominating business for the following visa categories are required to conduct Labour Market Testing: 

• Skills In Demand (SID) Visa – Subclass 482 

• Employer Nomination Scheme (ENS) – Subclass 186  

• Skilled Employer Sponsored Regional Visa – Subclass 494 

Notes:  

• Please get in touch with a professional to learn the full details of labour market testing. This includes all visa types, when the testing needs to be conducted and the steps to conduct the testing.  

• Certain visas and circumstances exempt the employer from conducting the Labour Market Testing and this information will be provided by a registered migration agent. Contact us today if you are a business looking to take the next steps with this process.  

What evidence do you need for LMT? 

• You must post at least 2 job advertisements for the position 

• The advertisements must be posted on nationally available recruitment websites such as LinkedIn, Seek, Jora and Indeed 

• These advertisements must be ‘live’ for at least 28 calendar days 

• • The job advertisements must include:
  • The name of the sponsor/employer
  • Clear job title and position description
  • The salary (or salary range) of the position
  • The skills and experience required for the role

Best practices 

• Documentation and record keeping – One of the key components of a structured and sound Labour Market Testing is the maintenance of records throughout the recruitment process. The organisation should document all applications, track all publication mediums, keep a copy of all job advertisements and maintain communication records. 

• Detailed advertisement – Employers should include factual and relevant information related to the job in all advertisements. This includes employee qualifications, experience, salary or salary range and benefits. You should be mindful not to set overly complicated or unrealistic requirements that may exclude qualified local candidates.   

• Advertise on multiple platforms – To broaden the candidate pool, you should advertise on multiple platforms such as national job websites, print media (if relevant) and industry-specific forums (if applicable).  

• Advertisement duration – To ensure a fair recruitment process, the position must be advertised for at least 28 calendar days.  

• Seek professional advice – As this is a complex and critical process in sponsorship visas, we recommend seeking professional advice before you conduct the Labour Market Testing (LMT).  

To summarise, Labour Market Testing involves strict legal requirements and structured processes. Our team can support you to understand:  

• The Labour Market Testing process 

• Compliance requirements 

• Exemptions applicable to your organisaton (if any)