How Labour Market Testing Works for Australian Employers in 2026

Before an Australian employer can sponsor an overseas worker, there is usually one non-negotiable step: proving that no suitable local candidate was available first. This process, known as labour market testing, is one of the most common reasons employer-sponsored nominations are refused — and almost every refusal is preventable.

Whether you are sponsoring under the Skills in Demand visa (Subclass 482) or the Skilled Employer Sponsored Regional visa (Subclass 494), understanding how labour market testing works in 2026 will help you avoid costly delays and get your nomination right the first time.

Why Labour Market Testing Exists

Australia's employer-sponsored visa program is designed to address genuine skill shortages, not to replace local hiring. Labour market testing (LMT) is the mechanism that keeps that principle in check. It requires the sponsoring employer to advertise the nominated position and demonstrate to the Department of Home Affairs that no suitably qualified Australian citizen or permanent resident was readily available for the role.

This is not a test of the overseas worker's credentials. It is a test of the local labour market, and it is assessed entirely at the nomination stage — not the visa stage. If the testing is deficient, the nomination is refused, and the worker's visa application cannot proceed on that nomination regardless of how qualified they are.

The 28-Day Advertising Requirement

The central rule is straightforward: the nominated position must be advertised for at least 28 continuous days. Those days need to run consecutively — two separate two-week placements will not satisfy the requirement, even if they add up to 28 days or more.

Beyond duration, the Department expects the advertising to meet several specific conditions.

Platform Reach

Advertisements must appear on platforms that reach a national audience of potential applicants. A listing on a small local noticeboard or an internal company posting generally will not qualify. Most sponsors place advertisements on at least two nationally recognised recruitment platforms to ensure genuine market visibility, such as Seek, Indeed, Jora or Workforce.

Mandatory Ad Content

Every advertisement must include the title of the position or a clear role description, the name of the sponsoring employer or the recruitment agency advertising on their behalf, and the annual salary. Where earnings fall below a specified threshold, a salary range is acceptable in place of a fixed figure. Missing any one of these elements can invalidate an otherwise compliant advertisement.

Timing Window

The advertising must fall within a defined period before the nomination is lodged. Testing completed too early can expire outside the allowable window just as easily as testing done too late. The Department sets and periodically updates the length of this window, so employers should confirm the current timeframe on the Department's official labour market testing page before placing any advertisements. At the moment, validity is 4 months from the first day of job posting.

Evidence Collection

Good evidence is what separates a smooth nomination from a painful one. Employers should retain dated screenshots of each advertisement, the platform name and URL, the full text of the ad, and clear records of the start and end dates. If the Department requests evidence of testing — and it often does — a well-organised file is far more persuasive than trying to reconstruct the record after the fact.

How Labour Market Testing Interacts with the Skills in Demand Streams

Labour market testing does not operate in isolation. It intersects directly with the salary thresholds that determine which stream of the Skills in Demand visa a nomination falls under, and that classification dictates whether testing is required at all.

The Skills in Demand visa (Subclass 482), which replaced the former Temporary Skill Shortage visa on 7 December 2024, operates across multiple streams. The two most relevant for the majority of employers are the Core Skills stream and the Specialist Skills stream, each anchored to its own income threshold.

Core Skills Stream

The Core Skills stream is tied to the Core Skills Income Threshold (CSIT). From 1 July 2026, the CSIT sits at $79,499, whereas the Specialist Skills stream applies to roles paid above the Specialist Skills Income Threshold, which is $146,717 from 1 July 2026. The threshold that governs a particular nomination is the one in force at the time the nomination is lodged, not when it is decided. Nominations in this stream are generally subject to full labour market testing requirements.

Who Is Exempt from Labour Market Testing

Certain intra-corporate transfers under international trade agreements can attract an exemption. Australia is a party to several trade agreements that allow transfers of employees within the same corporate group without the usual advertising requirements. However, whether a specific transfer qualifies depends on the applicable agreement, the worker's nationality, and the nature of the role. This is not a blanket exemption and should never be assumed without verification.

It is also important to note that an exemption from labour market testing removes only the advertising obligation. All other nomination requirements remain in force, including salary compliance, the genuine position requirement, and the standard sponsorship obligations. An incorrectly claimed exemption can result in a refusal that would have been avoided entirely by simply completing the testing.

Common Mistakes That Lead to Nomination Refusal

Most labour market testing refusals follow predictable patterns. Knowing what they are makes them easy to avoid.

Insufficient advertising duration: Running the advertisement for fewer than 28 continuous days is the most frequent error. Pulling a listing early because a candidate has already been identified undermines the entire purpose of the testing.

Inadequate platform coverage: Using platforms that do not reach a national audience — such as niche local boards or internal-only job postings — can render the testing non-compliant even when every other element is correct.

Incomplete ad content: Omitting the salary, the position title, or the sponsor's name from the advertisement is a straightforward basis for refusal. Each element is a mandatory requirement, not a suggestion.

Expired or mistimed testing: Advertising that falls outside the allowable pre-lodgement window is treated as though no testing was conducted at all. Employers who advertise too early and then delay lodgement are particularly vulnerable to this issue.

Poor record-keeping: Even fully compliant advertising can fail at the evidence stage if the sponsor cannot produce clear, dated proof of what was published, where, and for how long.

Each of these errors is avoidable with proper planning. Correcting them after a refusal, however, typically means re-advertising from scratch, re-lodging the nomination, and leaving the overseas worker in limbo while the process restarts.

Practical Steps Before You Advertise

If you are preparing to sponsor a skilled worker in 2026, two things should be confirmed before any advertisement goes live.

First, determine which stream the nomination falls into. This decides which salary threshold governs the role.

Second, check the current advertising rules directly on the Department of Home Affairs website. The required advertising window, the salary figure below which a range is acceptable, and any updates to platform requirements can all change. Relying on outdated information is one of the most common — and most avoidable — causes of nomination failure. IMPORTANT: The Department of Home Affairs website is intended as general guidance only and is often out of date or incomplete. Before making any decisions, we strongly recommend seeking professional immigration advice to avoid costly mistakes.

From there, the process is mechanical: advertise on compliant platforms for the required duration with the correct content, keep thorough dated records, and lodge the nomination within the allowable timeframe.

When Professional Advice Matters

Labour market testing is procedural, but the consequences of getting it wrong are significant. A refused nomination does not just pause the sponsorship process — it can force an employer to start again from the advertising stage, costing weeks of additional delay.

For employers who are unsure about stream classification, exemption eligibility, or whether their advertising evidence meets the Department's expectations, seeking professional migration advice before lodgement is considerably less expensive than dealing with a refusal afterwards.

This article provides general information only and does not constitute legal or migration advice. Individual circumstances vary, and professional guidance from a registered migration agent or lawyer should be obtained before making any application.