Medical institutes as well as some of the country's largest companies are warning of a top level "brain drain" as a result - and have met with immigration officials to plead their case.
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.
Sarah Palmer says that given she had to uproot her partner's life to make the move to Australia, the shorter timeframe would have been enough to change her mind.
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