Employers will have to advertise jobs locally for at least four weeks before they can apply to hire an overseas worker.
Labour market testing rules have been added to legislation that mean employers can't hire foreigners for jobs without first ensuring there's no Australian to fill the job.
Citizenship Minister Alan Tudge said the government had intended to introduce the requirements, but on Wednesday accepted amendments from the Senate to legislate the change.
The new rules require a business to advertise the position locally for at least four weeks and that the position be advertised at least four months before a temporary skills shortage visa is requested.
"It's only if there is no Australian able to fulfil the particular job ... then the particular business can sponsor a person to that position," he said.
Labor argued for the changes during initial debate in the lower house, and opposition immigration spokesman Shayne Neumann welcomed the change on Wednesday.
"We have always believed in genuine labour market testing for employers nominating overseas workers and we fought for it every step of the way," he said.
Centre Alliance, formerly the Nick Xenophon Team, also had a win with the government approving their request that the Skilling Australians Fund be reviewed after 18 months.
Employers hiring foreign workers will be charged $1800 a year for each temporary foreign worker they hire and $5000 for each permanent worker.
Levies would be paid into the fund to pay for trade training and apprenticeships.
