Australia: Update on Labour Market Testing Exemption for UK Citizens and Permanent Residents

The Department of Home Affairs confirmed that the Australia-United Kingdom Fair Trade Agreement (A-UKFTA) grants a blanket Labour Market Testing (LMT) exemption for Australian employers hiring UK nationals and permanent residents. This agreement took effect on May 31, 2023, offering benefits to those sponsoring UK citizens or permanent residents under the Temporary Skill Shortage subclass 482 visa program. Initially, the application of the LMT provisions stirred uncertainty and diverse opinions among stakeholders nationwide. Fragomen believed that the provisions mirrored other Fair Trade Agreements, exempting nationals and permanent residents of the other Party from LMT, and made submissions to advocate for this position. The Department of Home Affairs now affirms this view, ensuring the LMT exemption for all UK nationals and permanent residents applying for the subclass 482 visa program.