Labour Market Testing (LMT) for TSS Visa

Labour Market Testing (LMT) for TSS visa

Labour market testing (LMT) involves advertising the nominated position in Australia. As the name suggests the purpose of the LMT is to show the Department of Home Affairs (DoHA) that you cannot find a suitable Australian citizen or permanent resident worker.

LMT is required for Subclass 482 Temporary Skill Shortage visa (TSS) and Subclass 494 Skilled Employer Sponsored Regional (Provisional) visa.

In response to the COVID- 10 pandemic, the Department has announced new requirements to strengthen the labour market testing from 1 October 2020.

From 01 October 2020 onwards, in addition to two advertisements, the sponsor must advertise the position on Government Jobactive website. The advertisement on Jobactive must be in English and must run for at least four weeks. It must include:

  • The title or description of the position
  • The skills or experience required
  • The name of the sponsor
  • The salary of the position

Essentially, it will be a requirement to advertise three times.

These three advertisements must be completed and provided to the DoHA at the time the nomination is lodged.

The purpose of strengthening the LMT is to ensure that Australian citizens and permanent residents are given the opportunities to fill the job positions.

Exemptions to LMT are still available on or after 01 October 2020. LMT is not required if it would conflict with Australia’s international trade obligations, or where the annual earnings of the applicant will be equal to or greater than $250,000.

Period in which LMT must have been undertaken:
  • for a period of four weeks
  • no more than four months before the nomination is lodged

LMT testing will be mandatory unless international trade obligations apply.

The list of acceptable mediums in which nominated positions may be advertised can include LinkedIn’s online recruitment platform and industry specific recruitment websitesthat are relevant to the nominated occupation

LMT requirements for

Advertising of the nominated position must meet all of the below:.

  • the advertisement is in English and:
  • the title, or a description, of the position (Note: multiple positions in one advertisement are acceptable)
  • the name of the approved sponsor or the name of the recruitment agency being used by the sponsor
  • the salary for the position-if the annual earnings for the position are lower than AUD96,400. Note: it is acceptable to publish a salary range—for example AUD90,000 to AUD110,000.
  • such that advertisements set out any skills or experience requirements that are appropriate to the position.

3 Advertisements

and we suggest two of the below:

NOT acceptable

NOT acceptable platforms and websites for Labour Market Testing:

Note:

  • the nominated position may be advertised in the same medium (such as newspaper advertisements – on two separate occasions) or in any two different mediums simultaneously, or on two separate occasions
  • advertising may have been undertaken by a third party if authorised to do so by the sponsor (for example, an associated entity or a contracted party, such as a recruitment agency) – there is no requirement that the sponsor placed the advertisement themselves.

LABOUR MARKET TESTING WHEN APPLYING FOR THESE VISAS:

Employer Sponsored Visa Subclasses: TSS visa (482), subclass 186 (ENS) and 187 (RSMS) visas.

Exemptions to LMT

Under these new arrangements:

  • There are no exemptions based on the skill level of the nominated occupation. LMT is required for all nominations unless international trade obligations (ITOs) apply.

The current exemptions to LMT are:

  • the worker you nominate is a citizen/national of China, Japan, Mexico,Thailand or Vietnam, or is a citizen/national/permanent resident of Canada, Chile, South Korea, New Zealand or Singapore
  • Senior Managers for intra company transfers (ICT) from WTO countries**who are:
    • Responsible for entire or substantial part of company operation in AU
    • Responsible for the establishment of new operation of that business in AU
  • ICTs where the applicant is currently employed in one of the countries listed above, or any other ASEAN (Brunei, Myanmar, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, and Vietnam) nation
  • Citizen of a WTO member country who is being nominated by an employer for whom the nominee has worked in Australia on a continuous, full-time basis for 2 years immediately before the nomination is lodged.
    • Must be same position
    • If different position go to policy

**Executive or Senior Manager positions must be as per the nominated position and include;

  • Advertising Manager ANZSCO 131113
  • Chief Executive or Managing Director ANZSCO 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
  • Corporate services manager

Alternative requirements 

Alternative requirements apply where the nominated occupation/position is one which:

  • Requires the occupant to have an internationally recognised record of exceptional and outstanding achievement in a profession or a field (such as a sport, academia and research, or as a top-talent chef).
  • Is held by an existing TSS or subclass 457 visa holder for whom a new nomination has been lodged solely because:
    1. the annual earnings that will apply to the nominee have changed or
    2. a change in business structure has resulted in the nominee’s employer lodging a new application to be approved as a standard business sponsor.
  • Relating to an intra corporate transfer (ICT).
  • For which the annual earnings will be equal to or greater than AUD250,000.
  • within ANZSCO Minor Group 253 – Medical Practitioners (except General Practitioner (ANZSCO 253111) and Medical Practitioners nec (ANZSCO 253999)) or ANZSCO Unit Group 4111 – Ambulance Officers and Paramedics.

Note: an intra-corporate transfer is the transfer of an existing employee of a company to another branch or associated entity of that company operating in Australia.

Does the four week LMT advertising need to be consecutive?

No. This is not required. For example, the requirement will be satisfied if advertising was conducted for an initial period of two weeks, which was then paused for three weeks, and then recommenced for a further two weeks (i.e. a total of four weeks advertising campaign with a three week gap in the middle).

3rd Party advertisement:

advertising may have been undertaken by a third party if authorised to do so by the sponsor (for example, an associated entity or a contracted party, such as a recruitment agency) – there is no requirement that the sponsor placed the advertisement themselves.