The Turnbull government is looking to condense the job categories available under a 457 visa, but is conscious that demand for workers varies across the country.
Mr Dutton told Sky News that the list which includes more than 650 occupations is currently under review.
This follows a push from the Opposition for greater restrictions.
Immigration Minister Peter Dutton says the range of jobs was expanded "quite dramatically" under the Labor government, but concedes in some parts of the country it is quite difficult to get a particularly worker, such as in hospitality or a doctor.
"It is very hard to get people in regional areas. It is a different picture across the country and we need to respond accordingly," he told Sky News on Sunday.
The opposition has told ABC that the use of this kind of visa was badly affecting the Australian workers and that this has led to a wage recession in the country.
