Labour Market Testing (LMT): What Evidence Should Employers Keep?
Labour Market Testing (LMT) is the legal mechanism used to ensure that local workers have the first opportunity to apply for jobs. For employers sponsoring workers under the Skills in Demand (SID) (Subclass 482) or Skilled Employer Sponsored Regional (SESR) (Provisional) visa (Subclass 494) programs, LMT is often a tricky stage of the visa application process.
The rules for LMT are strict: if you make a tiny mistake, such as advertising for 27 days instead of 28, the Department must refuse the nomination. There is no room for negotiation, and you will usually lose the Skilling Australians Fund (SAF) Levy, which can cost your business thousands of dollars.
To protect your nomination, you must keep a meticulous evidence trail, and we have put together a list of exactly what you should have in your compliance folder.
Labour Market Testing (LMT) Duration: The 28-Day Rule
You must advertise the position for at least 4 weeks (28 consecutive days).
You should keep a PDF copy or a date-stamped screenshot of the advertisement on the day it was first posted and on the day it was taken down.
All ads must have been published within the 4 months immediately before you lodge the nomination application. If the ads are more than 4 months old, they are legally expired.
The Advertising Platform Rule
The Department requires that the role be advertised in at least two separate places. These sites can include SEEK, Indeed, LinkedIn, or even a highly industry-specific national recruitment site.
Ensure you keep a copy of invoices or receipts for every ad. If a platform is free, such as LinkedIn's basic tier, save a screenshot of the live ad showing the website's URL and the date.
Ad Content: What Was Promised?
The Department will check your ad details. To be valid, each ad must include:
The job title and a description of the duties.
The salary or a range of salaries that meets the Core Skills Income Threshold (CSIT) (unless the salary is above the current high-income exemption threshold).
The skills and experience required for the role, as described in the ANZSCO.
What to keep: A copy of the actual text used in the ad. Ensure this text matches the duties you listed in your Nomination application.
The Recruitment Summary: Why No Australians?
This is the most critical piece of evidence that many employers forget. If Australians applied for the job, you must explain why they weren't hired.
You should maintain a summary table that lists:
The total number of applications received.
The number of Australian citizens or permanent residents (PR) who applied.
The number of applicants interviewed.
The specific, non-discriminatory reasons why each Australian applicant was not suitable (e.g., missing required trade certification, or lacking the mandatory 3 years of specialist experience).
Important: You do not need to provide the resumes of every applicant to the Department, but you must have them available if the Department audits your business.
Why Accidental Mistakes Lead to Refusal?
LMT is not a flexible requirement. Common errors that lead to a nomination refusal include:
Advertising the role after you have already lodged the nomination.
Using a salary range in the ad that is lower than the CSIT or the salary you are offering the visa holder.
Only advertising on social media (Facebook/Instagram), which the Department does not accept as a prominent recruitment site.
For an employer, the goal is to create a decision-ready folder that proves, beyond any doubt, that you gave the Australian labour market a fair chance. By keeping receipts, screenshots, and a detailed recruitment summary, you can lodge your nomination with confidence.
Read our clients’ testimonials on Agape Henry Crux and Accredited Specialist in Immigration Law, Jason Ling.
Related:
Is Your Company at Risk of Adverse Information for a Nomination Application?
Is a Labour Market Testing (LMT) Exemption Possible Under a DAMA Agreement?
Visa Refusal Consequences: Understand the Reason & Next Steps
What Happens After Reporting Someone to the Department (DoHA)?
How Can Agape Henry Crux Help You?
Don't risk your business’s time and money on a nomination that might fail because of a technicality. Our team of immigration lawyers at Agape Henry Crux can provide tailored, creative professional advice and strategies to give you the best chance of success in achieving your visa goals. The team works closely with two of our Accredited Specialists in Immigration Law who specialise in complex visa matters. We recommend booking 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 this isn’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 and in the 2027 edition of The Best Law Firms™ - Australia.
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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