Labour Market Testing Exemptions in Australia

Labour Market Testing (LMT) is a requirement under Australian immigration law that obliges an employer sponsoring a visa applicant to test the local labour market before nominating that person for a position. In practice, this means advertising the role to demonstrate that no suitably qualified and experienced Australian citizen, Australian permanent resident, or eligible temporary visa holder is reasonably available to fill it. LMT is designed to ensure that skilled migration is used to fill genuine skills gaps, rather than to displace local workers.

LMT most commonly applies to nominations under the Skills in Demand (subclass 482) visa (formerly the Temporary Skill Shortage visa, renamed from 7 December 2024), the Skilled Employer Sponsored Regional (subclass 494) visa, and the Employer Nomination Scheme (subclass 186) visa. The specific requirements and available exemptions can differ slightly between these visa programs, so employers should confirm which rules apply to their particular nomination before advertising.

A valid LMT advertisement must generally be published for a minimum of four weeks and must fall within the four months ending on the day the nomination is lodged. Advertising that falls outside this window cannot be relied on and must be repeated. Employers no longer need to advertise via Workforce Australia. Two overlapping or complementary advertisements that meet the required content and duration are generally sufficient. Because these mechanical requirements are strictly applied, defective advertising remains one of the most common reasons nominations are refused.

Several exemptions can waive the LMT requirement, meaning a sponsor does not need to advertise the position at all. The main categories are the Major Disaster Exemption, the Skill and Occupation Exemption, the Specialist Skills stream exemption available under the Skills in Demand (subclass 482) visa, and exemptions arising from Australia’s international trade obligations. Each exemption has its own specific criteria, and a sponsor should confirm that an exemption genuinely applies before relying on it rather than assuming it does, as incorrectly claiming an exemption can result in the nomination being refused.

The Minister may exempt a sponsor from the LMT requirement where a major disaster has occurred in Australia with a significant impact on individuals, such that a government response is required, and where granting the exemption is necessary or desirable to assist disaster relief or recovery efforts. This exemption is discretionary and has historically been enlivened in response to events such as bushfires, floods, and the COVID-19 pandemic.

The legislative framework allows for exemptions based on the skill level or occupation of a nominated position. However, as at September 2026, no occupations have been specified under this exemption for the Skills in Demand (subclass 482) visa, meaning it currently provides no practical relief for standard nominations. Employers should not assume a particular occupation is exempt without checking the current legislative instrument, as this position can change.

Yes. Since the reforms that introduced the Skills in Demand (subclass 482) visa from December 2024, nominations under the Specialist Skills stream are exempt from Labour Market Testing altogether, provided the position is paid at or above the Specialist Skills Income Threshold (SSIT). The SSIT is indexed annually on 1 July; from 1 July 2026 it is set at AUD 146,576. This exemption removes only the advertising obligation, other nomination requirements, such as the genuine position and salary rules, still apply in full.

LMT conditions do not apply where requiring them would be inconsistent with Australia’s international trade obligations, including its commitments under Free Trade Agreements and the World Trade Organisation’s General Agreement on Trade in Services. In practice, this exemption is most commonly relied on where the nominee is a citizen, national, or permanent resident of a country covered by a relevant agreement. As at September 2026, this includes the United Kingdom, China, Japan, Canada, Chile, South Korea, Mexico, Peru, New Zealand, Singapore, Brunei, Malaysia, Thailand, and Vietnam, along with, most recently, the United Arab Emirates, added from 26 August 2025 following the Australia-UAE Comprehensive Economic Partnership Agreement (CEPA). Additional, more limited trade-related provisions can also extend to intra-corporate transfers and business personnel from other trading partners, including several ASEAN member states and India, depending on the specific role and circumstances. Where a sponsor is relying on this exemption, this should be clearly indicated in the visa application, and because the list of covered countries and agreements is periodically updated, it should be verified against the current legislative instrument before a nomination is lodged.