From 23 November 2013, all sponsors for the Subclass 457 visa will need to satisfy the newly introduced Labour Market Testing (‘LMT’) requirement in order to secure the visa or sponsorship transfer for their candidate.
The Department of Immigration and Border Protection (‘DIBP’) has recently announced not only the start date of this change, but greater detail as to how it will apply:
Sponsors will be required to undertake (and provide evidence of) LMT in relation to a nominated occupation (unless the occupation is exempt or it would be inconsistent with Australia's international trade obligations);
Sponsors will be required to provide information in relation to any redundancies or retrenchments concerning one or more Australian citizens or Australian permanent resident employees (in the previous 4 months) where they were made redundant or retrenched from positions in the same nominated occupation. This includes positions within an associated entity of the sponsor;
If there have been redundancies or retrenchments, LMT must be undertaken after those redundancies and retrenchments; and
Exemptions will apply if there has been a major disaster.
Exemptions Based on Occupation
Nominated occupations with a skill level equivalent to Skill Level 1 or Skill Level 2 as provided for in the Australian and New Zealand Standard Classification of Occupations (ANZSCO) will be exempt from LMT. This exemption, in broad terms, captures those occupations requiring at least the skill level of an AQF Associate Degree, Advanced Diploma, Diploma or at least 3 years relevant experience.
For example, Managers, Accountants, Business, Human Resource and Marketing Professionals, Financials Brokers and Dealers, and ICT Professionals.
Some occupations have specifically been excluded from this exemption. Current indications are that nurses and engineers will not be able to access the LMT exemption based on skill level.
Finally, we have been informed that LMT will not have retrospective effect. Rather, it will apply to applications lodged on or after 23 November 2013. The finer details in relation to LMT will be released during the course of the week.