The federal government is clamping down on the temporary foreign worker visa program saying it has to address abuses and ensure Australians get first preference for jobs.
"I want to make sure that Australians can get the chance and training they need so they can get the job opportunities. Of course from time to time, businesses will experience genuine skill shortages and fill them from overseas, but it shouldn't be for any broader purpose than that," Ms Gillard told SBS.
Ms Gillard explained how an increase in skilled migrant workers in the health care system is a result of a lack of adequate training, several years ago.
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"At an earlier point in time, under the Howard Government... we denied Australians training opportunities to become doctors and nurses. We're short now, and we're filling them from overseas... We should have extended to Australians those training opportunities."
"The issue for Australians here is about putting Australian workers first and making sure our training system is right," she said.
"Jobs in Australia are there to be filled by Australians. The purpose of 457 visas is [that] if we have short-term temporary labour shortages, that are skilled shortages, we fill them from overseas. If it's being used for any other purpose, it's not the right thing to do and it's not giving the proper priority to Australian jobs".
The prime minister also shrugged off support from former extremist political figure Pauline Hanson over the temporary visa issue.
"Third parties can engage in whatever commentary they like I'll do what's in the interest of Australians and Australian jobs."
The One Nation founder told the Financial Review she feels vindicated for warning about foreign labour more than a decade ago.
"A lot of the things I said back then, people are now saying 'Pauline, you were right'," she said.
Opposition Leader Tony Abbot says the Prime Minister's crackdown on the temporary foreign worker visa program is demonising applicants and dividing Australians.
"First of all we had the false class war, then we had the false gender war, now we have got the false birthplace war," he told reporters in Melbourne on Tuesday.
The Migration Institute says politicians should focus on the facts around the 457 visa program and not engage in a slanging match ahead of the September 14 election.
"I just think we need a steady mind and calm conversation going on around it, and not pitting Australian workers against some of these overseas people," chief executive Maurene Horder said.
"That's the thing I'm a little bit alarmed about - that we don't develop a political bunfight for the purposes of an election."
Currently there are just over 80,000 457 visa holders working in Australia mostly in management and trade jobs.
