Labour Market Testing exemptions expand under CEPA: new UAE trade agreement now in effect

In a landmark shift for employer-sponsored migration, the Australian Government has officially updated its migration law to include the Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates (UAE). This agreement now grants the UAE the same recognition under international trade obligations as other free trade partners and directly impacts Labour Market Testing (LMT) requirements for employer nominations.

The Department of Home Affairs has formally recognised CEPA under Australia’s migration law, introducing a streamlined sponsorship option for eligible businesses. This change allows employers to access exemptions from Labour Market Testing when their sponsorship arrangements meet the agreement’s conditions. It is particularly relevant to subclass 482 Skills in Demand visa applications involving workers who fall within CEPA’s defined business categories.

First Middle Eastern trade agreement to shape migration access

The CEPA marks the Australian Government’s first free trade agreement with a Middle Eastern country. Beyond goods and services, the agreement covers digital trade, investment, Indigenous participation, women’s economic empowerment, and environmental standards.

Importantly, CEPA outlines specific migration commitments in  , detailing entry and temporary stay provisions for defined categories of business persons. These include:

Business visitors:

• Service sellers and negotiators may stay for up to 3–12 months, depending on their activity.
• Must not derive income from Australian sources or directly supply goods/services.

Installers and servicers:

• Permitted a stay of up to three months where installation or servicing is tied to a purchase contract.
• No unrelated services may be performed.

Intra-corporate transferees:

• Executives and senior managers or specialists employed by UAE companies operating in Australia.
• May stay up to four years, renewable.
• Sponsorship is mandatory and subject to Australian occupation eligibility lists.

Independent executives:

• Tasked with establishing a new branch or subsidiary of a UAE enterprise in Australia.
• Entry is limited to a maximum of two years, subject to sponsorship requirements.

Contractual service suppliers (most relevant to subclass 482):

• Businesspersons contracted by Australian businesses or UAE enterprises with no presence in Australia.
• LMT may still be required, but only where doing so is not inconsistent with Australia’s WTO commitments.
• Temporary stay is limited to 12 months, with extensions possible.

Spouses and dependants:

• Eligible for matching work and stay rights if the principal visa holder is approved under categories C, D, or E for more than 12 months.

Technical legislative changes now in effect

The Migration (International trade obligations relating to labour market testing) Amendment (CEPA) Determination 2025 formally amended Instrument LIN 21/075 to include CEPA in the list of recognised trade agreements. The amendment also introduced minor technical updates, such as section renumbering and inclusion of an authority clause, to comply with Office of Parliamentary Counsel standards.

This change allows certain employer-sponsored visa nominations, especially under the 482 Skills in Demand visa scheme, to bypass labour market testing when they fall within CEPA-defined commitments. Employers and registered migration agents must refer to the full CEPA agreement, especially Annex 10A, to understand which visa categories and roles qualify.

Next steps for employers and agents

Employers looking to sponsor UAE nationals or UAE-based talent should review their compliance strategies in light of the new CEPA provisions. Where CEPA applies, Labour Market Testing exemptions may streamline sponsorship processes and reduce administrative obligations. It is essential to assess eligibility carefully, as requirements will vary depending on the visa category and type of business activity involved.

Need guidance on how CEPA exemptions apply to your business?

At Absolute Immigration, we provide strategic advice to help employers navigate new sponsorship opportunities under the UAE–Australia CEPA. Our team offers clear, expert guidance to ensure eligibility requirements are met and applications are positioned for success.

Contact us at aisupport@absoluteimmigration.com for tailored support.