Labour Market Testing Guide

The original requirements for LMT were introduced to ensure that employers were making the available job vacancies available to Australian citizens and permanent residents and only when they could not be fulfilled, businesses could seek foreign nationals to fill the positions.

The employer must undertake LMT within the four months prior to lodging their TSS (subclass 482) nomination on the basis that they could not fulfil the position due to lack of skills, qualifications, or relevant work experience first of the local labour market.

When the employer/sponsor advertises the nominated occupation, they must meet the below criteria:

• They must post at least two job advertisements for the position;
• The advertisements must be posted on nationally available recruitment websites such as Seek, Jora and Indeed, and;
• These advertisements must be ‘live’ for at least 28 calendar days.

There are a couple instances where business do not need to undertake the LMT requirements outlined above.

They include:

1. Specified labour market testing exemptions; and
2. If an International Trade Obligations (ITO) applies.

When the LMT requirements conflict with an Australian international trade obligation, they will not be considered as a requirement. These international trade obligations may relate to certain responsibilities under the World Trade Organisation, Fair Trade Agreements or General Agreement on Trade in Services.

The exemptions which are currently in place include:

• A citizen of a country which is a member of the World Trade Organisation (WTO) and that individual has worked in Australia on a full time basis in the nominated position for at least two years up until the nomination is lodged;
• The individual is a citizen or national of China, Vietnam, Thailand, Japan, Mexico or the United Kingdom;
• The individual is a citizen or permanent resident of South Korea, Singapore, Chile, Canada or New Zealand;
• The individual being nominated is a current employee of a business that is an associated entity of your business and the associated entity located in an Association of South-East Asian Nations (ASEAN) country (Brunei, Myanmar, Cambodia, Indonesia, Laos, Malaysia, Phillippines, Singapore, Thailand or Vietnam. In addition to ASEAN country members, Canada, Chile, China, Japan, Mexico, South Korea and New Zealand are also included;
• Senior Managers who are employed by companies located in a WTO country and are being transferred within the company (intra company transfers (ICT)) and that individual is responsible for at least a substantial amount of the companies operation and also the establishment of new operations of that business in Australia;
• In addition to the Senior Managers who are employed by companies located in a WTO countries, Senior Managers for intra company transfers from Malaysia, Philippines, Singapore, Thailand, Vietnam, Indonesia, Cambodia, Laos, Brunei and Myanmar are exempt.

A Senior Manager or also known as an Executive Manager can be categorised by the below occupations:

• Advertising Manager (131113)
• Chief Executive or Managing Director (111111)
• Chief Information Officer (135111)
• Corporate General Manager (111211)
• Finance Manager (132211)
• Human Resources Manager (132311)
• Sales & Marketing Manager (131112)
• Supply and Distribution Manager (133611)