Labour Market Testing (LMT) Exemptions 482 Visa Australia

Do you want to sponsor an overseas worker to Australia? How do you meet the Labour Market Testing Exemptions?

As a general rule, labour market testing is required in relation to a nomination for a subclass 482 (Temporary Skill Shortage) visa or subclass 494 (skilled employer sponsored regional (provisional)) visa and must be undertaken for a period of at least 4 weeks; The labour market testing is valid for 4 months, counting from the date when the job advertisement is first published.

Labour Market Testing Exemptions – Select Occupation or Select Position 

Unless the nomination is for a ‘select occupation’ or ‘select position’, a copy of all advertising material used to advertise the position must be provided. ICTs or Intra-Corporate Transferees should be treated as select positions.

These occupations or positions are those:

  • that require the nominee to have an internationally recognised record of outstanding achievement in sports, academia or research
  • that nominate an employee of an associated entity of the business sponsor
  • that the nominee already holds a TSS 482 visa but a new nomination application is required
  • for which the annual earnings will be equal or grater than AUD 250,000
  • for Ambulance Officers and Paramedics or Medical Practitioners within ANZSCO minor group 253 (that is not 253111, 253999)

Labour Market Testing Exemptions – International Trade Obligations and LMT

The Regional Comprehensive Economic Partnership Agreement (RCEP) came into force on 1 January 2022 adding to the 482 work visa Australia Labour Market Testing exemptions and improving the skilled work visa Australia process.

The RCEP is a international trade agreement and is made between:

  • the Association of Southeast Asian Nations (ASEAN includes Brunei Darussalam, Cambodia, Indonesia, Lao People’s Democratic Republic, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Viet Nam) and
  • ASEAN’s free trade agreement partners including Australia, China, Japan, New Zealand and the Republic of Korea.

Because of treaties already in force, citizens of:

  • China (excluding HK),
  • Japan,
  • Mexico,
  • Thailand
  • Vietnam

plus citizens AND permanent residents of:

  • Canada,
  • Chile,
  • Korea,
  • New Zealand or
  • Singapore

are subject to the labour market testing exemptions for the subclass 482 work visa Australia.

Also presently exempt is a current employee of a company that is:

  • an associated entity of the sponsor; and
  • that associated entity is located in Canada, Chile, China, Japan, Korea, New Zealand or any ASEAN nation (Brunei, Myanmar, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand and Vietnam);

The term associated entity is very broad and the Australian based company merely needs to be a company with some cross ownership links to the previous employer in the relevant country of origin.

The RECP is a further step in relief on LMT, as it now opens up relief from LMT in some circumstances to employees of companies in Japan doing business with Australia and who are specialists or have trade or professional skills.

The RECP extends to skilled employees of companies based in the party states who have been working for that employer for 2 years.

Persons who are:

(i) employees of an enterprise of another Party that has concluded a contract for the supply of a service within Australia and that does not have a commercial presence within Australia; or
(ii) engaged by an enterprise lawfully and actively operating in Australia in order to supply a service under a contract within Australia.

These are baby steps but whatever relief that can be gained out of these treaties depends on the application of the Migration Act.

The fact that Australia has entered into a trade treaty with a country does not mean that all citizens of that country meet the labour market testing exemptions.

For example the Free Trade Agreement between Australia and Hong Kong, China, (A HKFTA), has quite limited relief on LMT.

It is limited to skilled persons employed by the HK employer for not less than two years immediately preceding the date of the visa application.

Service sellers, senior or specialist executives and executives coming out to set up a business for a company based in a party state are exempt from LMT.

Other circumstances where Labour Market Testing Exemptions apply:

  • the nominee is a current employee of the associated entity
  • the nominee is sponsored as an executive or senior manager
  • will manage the entire or substantial part of the operations

 

  • the nominee is sponsored as an executive or senior manager
  • the nominee is sponsored by an overseas business operating in a WTO member country
  • will manage the entire or substantial part of the operations

 

  • the nominee is a citizen of a WTO country
  • the nominee is sponsored by an employer for whom has already worked in a full-time role, for two years

Also LMT might not be required if the person is nominated for a different position with the business but has a specialised knowledge at an advanced level of a proprietary nature of the company’s operations. This means that LMT is not required for a renewing subclass 482 work visa Australia!

Labour Market Testing Exemptions – List of treaties

The legislative instrument (Migration (International trade obligations relating to labour market testing) Determination was updated on the 31st of May 2023 to take into account the changes related to the new Australia-United Kingdom Free Trade Agreement and includes the following treaties:

(a) Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA);
(b) Australia-Chile Free Trade Agreement (ACl-FTA);

(ba) Australia-United Kingdom Free Trade Agreement (AUKFTA);
(c) China-Australia Free Trade Agreement (ChAFTA);

(d) Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP);
(e) Free Trade Agreement between Australia and Hong Kong, China (A HKFTA);

(f) General Agreement on Trade in Services at Annex 1B to the Marrakesh Agreement Establishing the World Trade Organization (GATS)(g) Indonesia-Australia Comprehensive Economic Partnership Agreement (IA CEPA);

(h) Japan-Australia Economic Partnership Agreement (JAEPA);
(i) Korea-Australia Free Trade Agreement (KAFTA);

(j) Malaysia-Australia Free Trade Agreement (MAFTA);
(k) Pacific Agreement on Closer Economic Relations Plus (PACER Plus);

(l) Peru-Australia Free Trade Agreement (PAFTA);

(m) Protocol on Trade in Services to the Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA);
(n) Regional Comprehensive Economic Partnership Agreement (RCEP);

(o) Singapore-Australia Free Trade Agreement (SAFTA);
(p) Thailand-Australia Free Trade Agreement (TAFTA).

NOTE: THE DEPARTMENT OF HOME AFFAIRS HAS CONFIRMED ON 28 JULY 2023 THAT UK CITIZENS AND PERMANENT RESIDENTS ARE SUBJECT TO THE LABOUR MARKET TESTING EXEMPTION SO NO EVIDENCE OF JOB ADVERTISING IS REQUIRED FOR BUSINESS NOMINATION APPLICATIONS.

The Labour Market Testing for employer sponsored visas is one of the main reson for refusal of a 482 nomination application, if your business requires specialist support with the sponsorship process, including standard labour market testing or labour market testing exemptions, contact us today to explain the visa 482 Australia process in detail.

Published by Maddie Phillips

Australian Immigration Law Specialist with over 12 years experience, I provide high touch immigration solutions for businesses and individuals, all aspects of Australian immigration law. OMARA Licenced, Member Migration Institute of Australia and Australian Human Resources Institute.

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