Before an Australian employer can sponsor a foreign worker on a 482 or 186 visa, they must prove they genuinely tried to hire locally first. That's Labour Market Testing — and getting it wrong can sink your visa application.
What Is Labour Market Testing?
Labour Market Testing (LMT) is a requirement under Australia's employer-sponsored visa program. Before a business can nominate a foreign worker for a Subclass 482 or Subclass 186 visa, they must demonstrate that they genuinely attempted to recruit an Australian citizen or permanent resident for the role — and could not find a suitable candidate.
The purpose is to protect local workers by ensuring employer sponsorship is used for genuine skills shortages, not as a cheaper alternative to local hiring.
What Counts as Labour Market Testing?
The Department of Home Affairs requires evidence of active recruitment efforts. Generally, this means:
Advertising on at least two platforms, one of which must be a national job board (e.g. Seek, Indeed, LinkedIn Jobs)
The job ad must have been live for at least 4 weeks in total (or 28 days, not necessarily consecutive)
Ads must have been placed within 4 months before the nomination lodgement date — older advertising is not accepted
Job ads must specify salary, duties, required qualifications, and skills for the role
What Must the Job Ad Include?
For LMT to be valid, each advertisement must include:
The title or a description of the position
The name of the employer or their recruitment agent
The duties and responsibilities of the position
The skills, qualifications, or experience required
The salary range or remuneration package (if required for the occupation)
Vague ads ("looking for an experienced engineer") without specifics are rejected.
When Is LMT Not Required?
Labour Market Testing is not required in the following situations:
The applicant is being sponsored under a Trade Agreement (e.g. applicants from certain countries covered by the ChAFTA or CPTPP)
The nomination is for a Labour Agreement stream that has its own LMT provisions
The occupation is on the PMSOL (Priority Migration Skilled Occupation List) — though this list has been significantly reduced since 2023
The visa is being lodged under an exemption category
Consequences of Inadequate LMT
If the Department determines LMT was not conducted properly, the employer nomination will be refused. This means the worker's visa application is also put on hold or refused — even if the worker themselves is fully eligible.
LMT is the employer's responsibility. NWI works closely with sponsoring businesses to ensure their LMT evidence is airtight before lodgement.
Tips for Employers
Start advertising early — before you even know the exact person you want to hire
Keep all records: job ad screenshots with dates, applicant lists, interview notes, rejection reasons
Do not close the ad prematurely — let it run the full 28 days
If the role has changed since you last advertised, new LMT is required