Is a Labour Market Testing (LMT) Exemption Possible Under a DAMA Agreement?

The Designated Area Migration Agreement (DAMA) is often praised as the most flexible pathway for regional Australian employers to sponsor skilled workers. Because DAMAs offer concessions such as age limits, English language levels, and salary thresholds, many employers ask: "Can I also get an exemption from Labour Market Testing (LMT)?" If you are an employer in a regional area or a worker looking for sponsorship, understanding the rules around LMT is important to ensure to avoid a nomination refusal.

What is Labour Market Testing (LMT)?

In the standard employer-sponsored visa system, such as the Skills in Demand (SID) (Subclass 482) visa, LMT is the process where an employer proves they have tried to hire a local Australian worker first. This usually involves:

Advertising the position for at least 4 weeks.
Using at least 2 different platforms.
Provide evidence that no suitable Australian was found.

Can You Skip LMT Under a DAMA?

The general answer is no, unless an exemption or an international trade obligation (ITO) applies. Even under a DAMA, the Australian Government remains committed that local workers should have the first right to local jobs. Even if you are in a very remote area, you must still demonstrate that you attempted to recruit locally before looking overseas.

Why LMT is Often More Difficult Under DAMA?

Paradoxically, LMT can sometimes be stricter under a DAMA. Because DAMA allows you to sponsor occupations that are not on the standard skilled list, DoHA will look very closely at your LMT. They want to be 100% sure that there truly isn't a single local person capable of doing that specific job before they approve a foreign worker.

What are the Common LMT Mistakes to Avoid?

Many DAMA nominations are refused because of simple LMT errors. To protect your application, ensure:

Your ads must have been published within the 4 months before you lodge the nomination.
The ad must include the salary and the specific duties of the role.
If your ad was live for 27 days instead of 28, the nomination application will be refused. There is no flexibility here.

Consider getting professional advice before taking action to ensure your employer-sponsored DAMA nomination and visa application is processed without facing a refusal.

Read our clients’ testimonials on Agape Henry Crux and Accredited Specialist in Immigration Law, Jason Ling.

How Can Agape Henry Crux Help You?

LMT is one of the reasons why employer nominations are refused. At Agape Henry Crux, our team of immigration lawyers works closely with our Accredited Specialists in Immigration Law to handle highly complex matters. Our team can help you assess and identify a suitable PR pathway for your unique circumstances. You can book a Migration Planning Session with our team by calling 02 8310 5230 or emailing us at info@ahclawyers.com to arrange a time.

We speak fluent English and Mandarin. If these aren’t your language, we can also help you arrange an interpreter.

Our founder and principal lawyer, Jason Ling, is recognised in the 2026 edition of The Best Lawyers in Australia™ and the 2027 edition of The Best Lawyers in Australia™. Agape Henry Crux is named as Best Immigration Law Firm 2025 - Sydney by APAC Insider Awards.

This article/presentation (“publication”) does not deal extensively with important topics or changes in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you find this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances, please contact our office.

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