Australia will introduce stricter visa requirements for skilled workers from overseas, the government said.
The 457 visa programme is used mainly to hire foreign workers in the restaurant, IT and medical industries – the majority came from India, the UK and China.
But PM Malcolm Turnbull said it will be abolished to prioritise the recruitment of Australian nationals.
Critics of 457 said Australian workers lost out to foreign counterparts.
In its place, two new temporary visas will carry additional requirements and draw from a smaller list of eligible professions.