Subclass 457 - Labour Market Testing requirement

This visa is now closed to new applications.

Standard business sponsors are required to test the local labour market prior to lodging a nomination and provide evidence of this as outlined below, unless the occupation is exempt from labour market testing (LMT) or an international trade obligation applies.

International trade obligations

LMT will not need to occur where it would conflict with Australia’s international trade obligations, in any of the following circumstances:

  • The worker you nominate is a citizen/national of China, Japan or Thailand, or is a citizen/national/permanent resident of Chile, South Korea, New Zealand or Singapore.
  • The worker you nominate is a current employee of a business that is an associated entity of your business that is located in an Association of South-East Asian Nations (ASEAN) country (Brunei, Myanmar, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand and Vietnam), Chile, China,​ Japan, South Korea or New Zealand.
  • The worker you nominate is a current employee of an associated entity of your business who operates in a country that is a member of the World Trade Organisation (WTO), where the nominated occupation is listed below as an “Executive or Senior Manager” and the nominee will be responsible for the entire or a substantial part of your company's operations in Australia.
  • Your business currently operates in a WTO member country and is seeking to establish a business in Australia, where the nominated occupation is listed below as an “Executive or Senior Manager”.
  • The worker you nominate is a citizen of a WTO member country and has worked for you in the nominated position in Australia on a full-time basis for the last two years.

Important: if you are not required to undertake LMT because an international trade obligation applies or an exemption applies, you are requested to upload a document or provide comments within your application explaining why you believe LMT is not required.

Executive or senior manager occupations

To determine which occupation is suitable for the purposes of international trade obligations, see: Executive or Senior Manager occupations for the purposes of international trade obligations

WTO member countries

Countries who are currently members are listed on the WTO website.

Occupation based exemptions from LMT

If international trade obligations do not apply to the nomination, there could still be an exemption from the requirement to provide evidence of LMT depending on the occupation that is being nominated.

For a list of occupations that cannot be exempted from LMT, see General Guide to 457 Program occupations which are not exempt from labour market testing.

Period in which LMT must have been undertaken

LMT must have been undertaken:

  • within the previous twelve months prior to lodging a nomination; or
  • if the sponsor or an associated entity has made any Australian citizen or Australian permanent resident workers redundant or retrenched from positions in the nominated occupation within the four months prior to lodging a nomination, then since this occurred. Note: when this occurs, information about these redundancies or retrenchments must also be provided.

Evidence of LMT

If you are not exempt from the LMT requirement, you must provide evidence of your attempts to recruit Australians, including the details and expenses of any advertising you conducted. If this evidence does not accompany your nomination application, it will be refused.

For nomination applications lodged on or after 1 October 2017, applications must include:

  • copies of advertisement(s) referenced in the nomination form. Note: If a similar ad was placed in multiple media formats, only one copy of the advertisement is required to satisfy this requirement; and
  • if fees were paid, receipt of any fees paid.

You are also encouraged to ensure that the advertising undertaken is for the nominated position and includes the same terms and conditions as those being offered to the nominee. 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) - there is no requirement that the sponsor placed the advertisement themselves.

If a new nomination application is being lodged for the same position due to:

  • changes in salary; or
  • company restructure

sponsors should provide the same LMT evidence for this position (which was provided with the original nomination), and a statement explaining that the visa holder is remaining in the same position. That is, new LMT is not required to be conducted in such instances.

Evidence of LMT for non-immigration purposes

Outside of the immigration application context, Australian law may impose labour market testing requirements for particular industries to ensure that Australian workers are given priority.

The Building Code 2016, for example, imposes certain requirements on employers when they seek to employ persons to undertake building work who are not Australian citizens or permanent residents. For more information, see Australian Building and Construction Commission website.

Prospective sponsors are encouraged to ensure that they familiar with any such requirements before considering nominating an overseas worker for a particular position.