Labour Market Testing for Australian Employers: What It Is and How to Get It Right

Labour Market Testing (LMT) is one of the most commonly misunderstood requirements in Australian employer-sponsored migration. Many employers don't realise they need to advertise a job before nominating an overseas worker — and those that do often get the advertising requirements wrong, causing delays or nomination refusals.

This guide explains exactly what LMT is, when it's required, what the advertising must include, and how to document it correctly.

What Is Labour Market Testing?

LMT is the process by which an employer demonstrates to the Department of Home Affairs that they genuinely tried to recruit an Australian citizen or permanent resident for the position before turning to overseas talent. It protects the local workforce while recognising that some positions genuinely cannot be filled locally.

When Is LMT Required?

LMT is required for:

• Most Subclass 482 nominations (short-term and medium-term streams)

• Subclass 494 nominations

• 186 nominations (Direct Entry stream) in some circumstances

When Is LMT Exempt?

Key exemptions include:

• Citizens of USA, Japan, or a country with a trade agreement that includes an LMT exemption for the relevant occupation

• Intra-company transfers (in limited circumstances)

• Occupations specifically listed on the LMT exemption list

• Disaster recovery or emergency situations

Always verify whether an exemption applies — claiming an incorrect exemption will result in nomination refusal.

The Advertising Requirements

When LMT is required, the advertising must meet strict standards:

• Timeframe: Must be conducted within 4 months before lodging the nomination

• Duration: Each advertisement must run for at least 4 weeks

• Platforms: Must include at least 2 forms of advertising — and one must be on a 'prominent' platform. Seek.com.au, LinkedIn, and the employer's own website are commonly accepted. One ad on Seek alone is not sufficient.

• Content: Ads must include the job title, duties, required skills/experience, and salary (or salary range)

• Location: Must specify the work location

What Documentation Do You Need?

When lodging the nomination, you must provide:

• Screenshots of each advertisement with the date range clearly visible

• Copies of the ad text for each platform used

• Evidence that ads ran for the full 4-week period (publisher confirmation or screenshot with date)

• Details of applications received and why Australian applicants were not suitable (if any applied)

If you received genuine Australian applicants, you must be able to explain why they were not appointed. This doesn't mean you can't hire overseas — it means you genuinely considered local talent first.

Common LMT Mistakes That Cause Refusals

• Advertising only on the employer's own website — insufficient as the sole platform

• Ads that ran more than 4 months before nomination lodgement — out of the LMT window

• Ads without a salary figure — non-compliant

• Ads that only ran for 2–3 weeks — below the 4-week minimum

• No documentation of ad dates — impossible to verify compliance

Frequently Asked Questions

Q: Can I use a job board other than Seek for Labour Market Testing?

A: Yes. The Department doesn't mandate Seek specifically — it requires advertising on a 'prominent' job board with national reach. LinkedIn Jobs, Indeed, or CareerOne may also be acceptable. Your migration agent can confirm which platforms are currently accepted.

Q: Does LMT apply to internal transfers within the same company?

A: LMT exemptions may apply for genuine intra-company transferees under some trade agreements. However, this is not automatic — the occupation and the applicant's relationship to the company must meet specific criteria. Always confirm with a migration agent.

Q: What if no Australians applied for the role?

A: If you advertised genuinely and received no Australian applicants (or only unsuitable applications), that's fine — it's one of the outcomes LMT is designed for. Simply document the advertising, note the outcome, and proceed with your nomination. Keep records of any applications received.

Q: How long should I keep LMT records?

A: Keep records for at least 5 years after the nomination is lodged. The Department can audit your compliance at any time during your SBS period, and you'll need to produce evidence quickly if requested.