Labour Market Testing in Australia – Complete Guide
Before hiring a skilled worker from overseas, Australian employers often need to prove they’ve tried to recruit locally. This is where labour market testing comes in — a process that, if misunderstood, can derail your entire visa application.
Labour market testing (LMT) is evidence that you genuinely attempted to fill a role with Australian workers before turning to overseas candidates.
If you’re an employer or applicant unsure about LMT, Stepping Stones Career Solutions can help – book your consultation today.
What is Labour Market Testing in Australia?
Labour market testing is the government’s way of checking that employers made a real effort to hire locally. It usually means running job ads for a set time on acceptable platforms and keeping clean evidence.
At its core, LMT asks employers to advertise the position in Australia and show there were no suitable local candidates. Current Home Affairs guidance states LMT involves advertising for at least four weeks in at least two advertisements with national reach. These can be online job portals like SEEK, Indeed, etc.
Why does the government enforce Labour Market Testing?
LMT helps protect local job opportunities and ensures sponsorship is used only when skills can’t be sourced domestically. This is a longstanding policy setting across employer-sponsored visas.
When is it required?
LMT is a formal nomination requirement for the subclass 482 (now called the Skills in Demand visa in practice) and subclass 494 programs. The TSS program shifted to the new SID settings from 7 December 2024, but the LMT concept still applies to employer nominations.
Visa Types That Require Labour Market Testing
Not all visa subclasses require LMT, but the rules are strict for some employer-sponsored pathways.
482 Labour Market Testing (Temporary Skill Shortage / Skills in Demand)
For subclass 482 visa nominations, you must run LMT unless an exemption applies. The Department explains this as at least 2 ads for 4 weeks within the 4 months before you lodge the nomination, on platforms with national reach. Overlapping ads are accepted as long as the total coverage is 28 days.
Requirement to Advertise the Job in Australia
The ads must target an Australian audience and meet set content rules (detailed below).
Timeline and Ad Content Rules (High Level)
- Duration: 28 consecutive days (or overlapping ads totalling 28 days).
- Window: within 4 months before nomination lodgement.
Is Labour Market Testing Required for the 186 Visa?
Generally, no. LMT is not a formal criterion for the subclass 186 visa Employer Nomination Scheme, including the Direct Entry stream, though evidence of advertising can help show genuine need.
Labour Market Testing Requirements
Get these right and you’re on solid ground:
- Where to advertise: Use national job boards or recognised industry sites (e.g., SEEK, Indeed, LinkedIn Jobs). Avoid local-only classifieds or social posts.
- How long: Keep ads live for at least 28 days. Overlapping ads are fine as long as total coverage equals 28 days.
- When: Run LMT close to nomination (within the current Department window).
- What to include in ads: Job title, core duties, required skills/experience, employer or agency name, and salary disclosure if required under the current threshold.
- Keep records: Full screenshots/PDFs of ads (with dates), invoices/receipts, and a brief outcome note for each applicant.
Labour Market Testing Template (copy–paste and fill in)
Use this labour market testing report sample as your working file. It mirrors what case officers look for and keeps your evidence tidy.
1) Role & Sponsor Summary
2) Advertising Plan (Platforms with National Reach)
| Platform | Link (URL) | Start Date | End Date | Days Live | Paid/Free | National Reach? |
|---|---|---|---|---|---|---|
| Platform A | Yes / No | |||||
| Platform B | Yes / No | |||||
| (Optional) Industry board | Yes / No |
3) Ad Content Checklist (tick ✓ when included)
- Clear job title that matches the nominated occupation
- Employment type: full time
- Employer or agency name shown
- Core duties match the nomination
- Required skills/experience listed
- Work location stated
- Salary shown if disclosure is required under the current threshold
- How to apply (email/apply link)
- Ads targeted to an Australian audience
4) Evidence Pack (save filenames here)
Screenshots/PDFs showing platform, dates, and full ad text:
5) Applicant Review Log
Briefly record who applied and why no one was suitable. Keep reasons factual (e.g., skills gap, notice period, salary expectations outside offer range, work rights).
| Applicant Code | Key Skills vs Role | Interviewed? | Outcome | Reason Not Suitable |
|---|---|---|---|---|
| A1 | e.g., 2/4 core skills | Yes / No | Not progressed | Insufficient XYZ |
| A2 | Yes / No | Not progressed | Salary expectations above range |
If privacy policies limit detail, keep codes consistent and store full resumes internally.
6) Timing Summary
7) Salary & Conditions Alignment
8) Declaration
I confirm the above reflects genuine recruitment for this role and the evidence pack is complete.
Labour Market Testing Exemptions
Some cases legitimately skip LMT — but they’re narrow and technical. Always confirm the exact basis with a Registered Migration Agent or book a consultation with Stepping Stones Career Solutions before you lodge.
International Trade Obligations (ITOs)
LMT is not required where Australia has waived it under a free trade or WTO obligation — for example, categories under specific trade agreements.
Intra-Company Transfers
Where the nominee is transferred within a multinational group and falls under an ITO category, LMT can be waived. Note: the exact category must fit the treaty wording.
Ministerial / Industry Settings
Under the Minister of Religion Labour Agreement (MoRLA), organisations are exempt from LMT, though they must still explain why an Australian worker couldn’t fill the role.
The complete list of exemptions from LMT is available on the Department of Home Affairs website.
How Long Does Labour Market Testing Take?
Budget at least four weeks for ads and allow time for applications to flow in and be reviewed. Then, plan your nomination window.
Breakdown of Labour Market Testing Timelines
- Ad period: minimum 28 days (continuous or overlapping).
- Nomination window: lodge within 4 months of the ad period.
Consequences of Delay
If your ads lapse past the 4-month window, you’ll need to redo LMT. That means fresh costs, new timing, and potential project impacts.
Mistakes to Avoid When Completing Labour Market Testing
- Not advertising long enough — ads taken down early; staggered ads that don’t add up to 28 days.
- Using incorrect job titles — e.g., vague titles that don’t match the ANZSCO-aligned occupation on the nomination.
- Incomplete reporting — missing screenshots, no dates, or poor applicant notes.
- Not matching the job ad with the nominated occupation — mismatched duties/skills cause “genuine position” concerns.
- Wrong platforms — general classifieds or social media blasts.
- Missing the salary line when required — forgetting the <$96,400 salary disclosure.
Ready to Sponsor an Overseas Worker?
Don’t let LMT slow you down. Talk to our migration experts today.
Trusted by hundreds of Australian employers.
