What is Labour Market Testing?

Labour market testing is a requirement for certain visa types, specifically, visas that involve sponsoring a worker overseas. It generally involves advertising the position in Australia, which must comply with the requirements of the Department of Home Affairs.

Labour market testing may also be required for particular industries to ensure that Australian workers are prioritised.

However, in some instances, labour market testing may not be applicable, or alternative arrangements may be required.

It is no longer a requirement to advertise the position through the Government employment service, Workforce Australia. From 11 December 2023, employers must conduct two valid advertisements.

Labour Market Testing for Skills in Demand (subclass 482) Visa – Core Skills Stream, Skills in Demand (subclass 482) Visa – Specialist Skills Stream and Skilled Employer Sponsored Regional (Provisional) Visa (subclass 494) – Employer Sponsored Stream

Employers must provide copies of the advertising material used to advertise the position. The position must be advertised for at least 4 weeks within the 4-month period immediately before lodging the nomination.

If an Australian citizen or permanent resident has been made redundant or retrenched from the nominated occupation within 4 months before lodging the nomination, the advertisement must have occurred since the redundancy or retrenchment.

Requirements for the Advertisement

The advertisement must meet the following requirements:

1. The advertisement was in Australia and in English, with the following information:

a. Position Title;

b. Position Description;

c. Skills and experience required for the position;

d. Name of the approved sponsor or the recruitment agency used by the sponsor; and

e. Salary for the position, if the annual earnings for the position are lower than $96,400.00

2. At least 2 published advertisements in:

a. In a prominent or professional recruitment website with a national reach and advertising for positions in Australia;

b. In print media with national reach;

c. In radio with national reach; or

d. If the employer is an accredited sponsor, the advertisement may be done through its business website.

3. The advertisements must run for at least 4 weeks; and

4. The applications for the advertised position must have been accepted for at least 4 weeks.

Exemptions from Labour Market Testing under International Trade Obligations (ITOs)

Labour market testing is not required where Australia has waived the requirement under ITOs, including the following circumstances:

1. The worker is applying in one of the exempt categories under these ITOs and is a citizen of Brunei, China, Japan, Malaysia, Mexico, Peru, Thailand, Vietnam, or is a citizen or permanent resident of Canada, Chile, South Korea, New Zealand, Singapore or the United Kingdom;

2. The worker is a current employee of a business that is an associated entity of the sponsoring business, and the associated entity is located in an Association of South-East Asian Nations (ASEAN) country (Brunei, Myanmar, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand or Vietnam), Canada, Chile, China, Japan, Mexico, South Korea, United Kingdom, New Zealand, Peru, Samoa, Tuvalu, Kiribati, Tonga, Solomon Islands, Niue, the Cook Islands or Vanuatu;

3. The worker is a current employee of an associated entity of the sponsoring business, and that associated entity operates in a country that is a member of the World Trade Organisation (WTO), and the nominated occupation is an Executive or Senior Manager occupation for the purposes of ITOs, and the worker will be responsible for the entire or a substantial part of the company’s operations in Australia. For the purposes of ITOs, the following occupations are considered to be Executives or Senior Managers:

4. The business currently operates in a WTO member country or territory, or Tuvalu, Kiribati, Niue, or the Cook Islands, and is seeking to set up a business in Australia, and the nominated occupation is an Executive or Senior Manager occupation for the purposes of ITOs; or

5. The worker is a citizen or an eligible permanent resident of a WTO member country or territory and has worked for the sponsoring business in the nominated position in Australia on a full-time basis for the last 2 years.

ITO exemptions do not apply for nominations lodged under a labour agreement and the Skilled Employer Sponsored Regional (Provisional) visa (subclass 494).

Final Thoughts

To determine if your visa application does not require labour market testing, it is recommended that you seek advice from a qualified migration agent or migration lawyer. Navigating visa conditions and demonstrating a compelling need to work can be complex, and professional guidance will help ensure that your application is properly prepared and supported.