2.4 Labour Market Testing, Market Salary, and the Skilling Australians Fund

2.4 Labour Market Testing, Market Salary, and the Skilling Australians Fund

Labour market testing, salary integrity, and the Skilling Australians Fund charge are separate nomination issues. A nomination can fail even if two of the three are satisfied, so each requires its own evidence and legal check.

Labour market testing

Section 140GBA and the current legislative settings require prescribed evidence that the sponsor tested the Australian labour market unless a valid exemption applies. Current Home Affairs guidance summarises the core rule as advertising the position in Australia for at least four weeks in at least two advertisements. The detailed instrument controls timing, permitted media, content, and evidence.

A defensible LMT file should preserve:

• a complete copy or screenshot of each advertisement, not merely an invoice;
• the publication medium, URL or provider, and evidence of national reach where required;
• start and end dates showing the required duration;
• the job title or description, skills or experience sought, employer or recruiter identity, and salary information where required;
• the recruitment results and a reasoned explanation of why applicants were not suitable.

Agents should check the permitted timing window immediately before nomination. Re-posting an advertisement may restart, rather than cure, a required continuous period. A minor mismatch in title, duties, location, hours, or remuneration can also weaken the claim that the advertised role is the nominated position.

International-trade-obligation exemptions are technical. Do not infer an exemption merely from the worker’s nationality, an overseas parent company, or a free-trade agreement. Identify the exact treaty category and facts specified in the current instrument and retain evidence for it.

Annual market salary and indexed thresholds

The salary inquiry has two distinct controls:

1. Market parity: the nominee’s earnings and conditions must be no less favourable than those provided to an equivalent Australian worker. An actual comparator is strong evidence when genuinely equivalent; otherwise, awards, enterprise agreements, remuneration surveys, job advertisements, and industry data may support a reasoned market rate.
2. Migration income threshold: the earnings must meet the threshold for the selected stream on the relevant date. For 1 July 2026 to 30 June 2027, the CSIT is AUD 79,423 and the SSIT is AUD 146,576.

The higher threshold does not excuse a weak market-rate analysis. Nor can an employer inflate a package using uncertain overtime, discretionary bonuses, reimbursements, or non-monetary benefits. The agent should reconcile the employment contract, nomination form, payroll evidence, market-rate calculation, and business capacity.

Skilling Australians Fund charge

The SAF nomination charge is imposed on the sponsor under the applicable charging legislation. The amount depends on the nomination program, business turnover, and proposed visa period. Because charges and refund grounds can change, use the official calculator and current legislation at lodgement rather than memorising a total.

The sponsor must not pass prohibited sponsorship or nomination costs to the worker. A deduction from wages, side agreement, loan, inflated professional fee, or demand for reimbursement can amount to cost shifting even if labelled differently. The migration agent should keep clear written advice about who is responsible for each fee.

SAF refunds are available only where legislation specifies a ground. Withdrawal, business hardship, or a worker changing their mind does not automatically create an entitlement. Before advising on a refund, identify the exact provision and the event that triggers it.

Worked audit

A restaurant advertises a chef role on one local social-media page for 21 days, offers AUD 80,000, and asks the worker to reimburse the SAF charge. For a Core Skills nomination in September 2026, three separate problems arise: the LMT evidence does not show the current minimum duration and two-advertisement baseline; salary slightly above the CSIT still needs market-rate support; and shifting the SAF charge to the worker is prohibited. The correct advice is to repair the recruitment process before lodgement, substantiate market salary, and ensure the sponsor bears its own statutory costs.

Evidence audit before nomination

Run an audit that another practitioner could reproduce. List each advertisement, publication channel, audience, start and end date, content, and recruitment result, then compare it line by line with the nominated position. Save accessible copies rather than links that may expire. Build the market-rate conclusion in a short memorandum: identify any equivalent Australian worker, explain why the comparator is genuinely equivalent, or triangulate an award, enterprise agreement, surveys, and recent advertisements. Reconcile that result with the employment contract and indexed stream threshold. Finally, record business turnover, proposed visa period, SAF calculation, payer, payment receipt, and written advice that prohibited costs cannot be recovered from the worker. If an exemption or refund is claimed, quote the current legal ground and retain the facts establishing it. This file structure lets an assessor distinguish legal conclusion, source evidence, and arithmetic instead of accepting a conclusory form answer.