457 Labour Market Testing update

*On November 23, the Government announced that adequate testing of the local labour market would be introduced as a necessary requirement for an employer to be able to nominate and employ a 457 worker. Also announced was all available exceptions to this testing, including those based on international trade obligations, occupation-based exemptions, and in situations of major disaster.

To read the full article on the changes, click the link below, or scroll to the bottom and click on our related article.


Since our last Immigration News update on the changes, the introduction of Labour Market Testing has been implemented for many employers nominating for a position through use of the 457 pathway. So what has the effects of the changes been so far?

Due to the limited amount of time that has passed since the implementation of the changes (which came in November 23) and length of term for a standard business sponsorship being three years, the long-term repercussions won’t be known for sure for some time. Only certain sponsors which have nominated a position since November 23 will have been subjected to the new requirements.

However, based on details released by the DIBP it is possible to determine some details about the changes and their likely effects. These are:

  • The requirements appear to be far less stringent than those of the Regional Skilled Migration Scheme (RSMS) program, which has harboured the requirements since its commencement. According to a Frequently Asked Questions document released by the Department, social media and unpaid advertising are acceptable forms of advertising, as is promoting the position on the company’s own website.
  • The testing appears that it will be a much greater inconvenience to small businesses than large corporations. Many big businesses already heavily advertise for the positions before applying for sponsorship, as opposed to small business owners who tend to rely more on experiential knowledge of the local market, and have smaller budgets.
  • The decision as to whether the labour market testing requirements have been satisfied appears to be a subjective assessment. No minimum duration of advertising or testing has been stipulated in any of the information released by the Department, thereby encouraging employers to complete as much as is practical in order to ensure their application is granted.

Further Information

Anyone with further enquiries relating to the new labour market testing requirements is encouraged to contact Migration Solutions in order to have their situation professionally assessed.

If you have any questions about the issues raised in this article or about corporate migration generally, please contact:

Mark Glazbrook
t: +61 8 82118597| e: [email protected]

Related Articles: Changes to 457 requirements for employers announced

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