Labour Market Testing for Australian Employer-Sponsored Visas: 2026 Guide

What Changed in 2024 and 2025

Several substantive changes apply to Labour Market Testing and the broader employer-sponsored program in the 2024-2026 period. Skills in Demand (Subclass 482): the SID visa replaced the previous Temporary Skill Shortage (TSS) framework on 7 December 2024. SID has three streams: the Core Skills stream (CSIT income threshold AUD 79,423 from 1 July 2026), the Specialist Skills stream (SSIT income threshold AUD 146,576), and the Essential Skills stream (in development at the time of writing for specific sectors). LMT remains a requirement for SID nominations under all relevant streams. Income thresholds: the Core Skills Income Threshold (CSIT), Specialist Skills Income Threshold (SSIT), and the Temporary Skilled Migration Income Threshold (TSMIT for 494 and 187) are indexed each 1 July. Nominations must offer a base salary at or above the relevant threshold for the stream and visa subclass. Advertising platform expectations: the Department now expects LMT advertising on credible, well-known platforms — placement on minor or industry-niche sites alone is insufficient. National job boards (Seek, LinkedIn, Indeed, Jora.com.au, CareerOne) are the safest documented compliance path. Documentation standards: where Australian applicants were screened out, the Department expects specific, defensible reasons (qualifications, experience, salary expectations, availability) rather than generic 'not suitable' statements. None of these changes have reduced the LMT requirement — they have generally tightened it. Employers who relied on past practice or sponsored agents should verify each step against current settings before lodging a nomination.

Why LMT Is Required and What It Is

Labour Market Testing exists to protect Australian workers. Before an employer can sponsor an overseas worker, they must demonstrate they have tried to fill the role locally. The Department uses LMT to verify that employer-sponsored visa nominations represent genuine skills shortages rather than a preference for cheaper overseas labour or other non-shortage-based reasons. LMT requirements apply to: Subclass 482 Temporary Skills Shortage visa nominations. Subclass 494 Skilled Employer Sponsored Regional nominations. Subclass 186 Employer Nomination Scheme (Direct Entry stream in some cases). LMT is assessed as part of the nomination — the employer, not the visa applicant, is responsible for conducting and documenting the LMT. A nomination will typically be refused if LMT was not conducted, if the advertising does not meet the prescribed standards, or if there is no explanation for why Australian applicants were not suitable.

LMT Advertising Requirements: What Must Be Advertised

Each advertisement placed for LMT purposes must contain: the title of the position; the main duties or responsibilities of the role; the skills, qualifications, or experience required; the salary or salary range (or information about how it will be determined); the employer's name or, if the job is listed through a recruiter, the recruiter's name; the location of the position. Advertisements must: be published in English; be placed on at least 2 separate advertising platforms (at least one of which must be a national job board); run for a total of at least 4 weeks, calculated across the combined advertising period on all platforms. Acceptable national job boards include Seek, LinkedIn, Indeed, Jora.com.au, and CareerOne. Advertising only on the employer's own website, or in a small local paper, or on a single platform for less than 4 weeks, does not satisfy LMT requirements.

Timing: When Must LMT Be Conducted?

LMT must be conducted within the 4 months immediately before the nomination is lodged with the Department. Advertisements run more than 4 months before lodgement do not satisfy the LMT requirement — they are too old. This means: the employer cannot rely on advertising done during a previous unsuccessful recruitment round that was concluded more than 4 months ago. The employer must conduct fresh LMT within 4 months of lodging the nomination. This timing requirement means employers should plan their LMT carefully. Starting advertising 6 weeks before the planned nomination date gives time to run 4 weeks of advertising and still lodge within the 4-month window. Waiting until the last minute to advertise and then immediately lodging the nomination is technically compliant (if advertising ran for 4 weeks) but leaves no buffer for issues.

What Happens After Advertising: Documenting the Outcome

After advertising concludes, the employer must be prepared to certify that no suitably qualified and available Australian was found for the role. This requires the employer to: document the number of applications received from each advertisement; document why each Australian applicant who applied was not suitable (e.g. insufficient qualifications, insufficient experience, declined the offer, requested salary above the offered range, unable to perform the required tasks); keep records of all applications and screening decisions. The Department may request this documentation as part of the nomination assessment. A common error is conducting the advertising correctly but failing to document the assessment of applicants. Even if no Australian applied, the employer should record the number of applications received and document that no suitable candidates were identified. Comprehensive documentation protects the nomination from a Department request for further information or a refusal based on failure to demonstrate genuine LMT.

LMT Exemptions: When Advertising Is Not Required

Certain situations exempt the employer from LMT requirements: International Free Trade Agreements: workers from countries covered by an FTA with Australia (e.g. Chile, Thailand, China, Japan, South Korea, ASEAN) may be exempt from LMT for their specific visa subclass. Check the relevant FTA schedule. High salary: some visa nominations are LMT-exempt if the position is paid above a certain threshold (currently above approximately $250,000 per year in some contexts). Intra-company transfers: workers being transferred within a multinational company may qualify for reduced or no LMT in specific circumstances. Emergency circumstances: the Department has discretion to accept that LMT was not required in emergency or highly time-sensitive situations. The LMT exemption must be identified correctly and documented in the nomination. Assuming an exemption applies without confirming it is a common error that results in nomination refusals.

Can the employer use a recruiter to conduct the LMT advertising?

Yes. Recruiters can conduct the LMT advertising on behalf of the employer. The advertisements must still meet all requirements (content, platform, duration). The recruiter's role must be clearly documented, and the employer remains responsible for the LMT certification.

What if the position was not publicly advertised because the employer found the overseas candidate through a referral?

LMT is required regardless of how the employer found the overseas candidate. Even if the employer already knows who they want to hire, they must still conduct LMT before the nomination can be lodged. The result of the LMT must confirm no suitable Australian was available.

We advertised 6 months ago and couldn't find anyone. Do we need to advertise again?

Yes. LMT must have been conducted within the 4 months before lodgement. Advertising more than 4 months old does not satisfy the requirement. The employer needs to run fresh advertising within the required timeframe.

Is LMT required for the 186 Transition stream?

No. The 186 Transition stream (for workers transitioning from the 482 after 3 years) does not require LMT. LMT is required for the 186 Direct Entry stream in most circumstances.