Hundreds of occupations have been taken off the eligibility list for 457 visa applications.
Hundreds more have been wound back with an offer of two years in Australia instead of four, and no pathway to permanent residency.
The medical sector is already warning that there are several star scientists who have turned down positions in Australia as a result.
Other industries are raising the alarm too.
Katie Lahey the Executive Chairman of international executive recruiting company Korn Ferry, fears the two-year restriction will impact the ability of Australian companies to find the world's best talent for chief executive roles. She says, "I think there's a feeling that this really is going to limit the attractiveness of Australia as a working destination for very senior people. The unintended consequences from this review means that a lot of these very senior jobs will only become available for a 2-year period and if you're going to uproot your life in the US, the UK, Hong Kong, Singapore, to come to Australia for 2 years, for a very senior person - they're not going to do that."
The Immigration Minister Peter Dutton says there'll be regular reviews of the government's occupation lists, with the first one scheduled for July.
