This is a significant development, as 457 work visa was one of the most popular visas used by Australian companies to bring foreign workers, from all fields.
The 457 program will be replaced by two temporary skilled visas - one lasting two years and another lasting four years for critical skills shortages only. "It basically displaced a lot of Australians from entry-level jobs".
The existing visa programme for foreign workers includes 651 occupations out of which some 200 occupations are to be scrapped into new programme.
"So today we are announcing changes to strengthen citizenship, to make for a stronger Australia, stronger citizenship, stronger citizens".
Employers who fail to meet requirements - including advertising jobs over six months - will be named and shamed. Among other steps, the action will bring a review of the USA work visa program.
"They now employ over 20 employees each and pay taxes to our country", he said.
Labor senator Penny Wong said her party had not seen the details of the changes but suspected they were designed for political purposes.
"While there is merit to saving jobs for Australian-born developers, the community is small and technical specialists are few and far between".
The 457 visa has been axed with immediate effect, and replaced by two new visas with a shorter skills shortage list and a tougher English language requirement, Turnbull announced on Tuesday.
"Most employers would hire an Australian if there were Australians that applied it's the same with nurses etc".
Immigration Minister Peter Dutton highlighted tourism as one such industry in an interview with the Nine Network. "We made a decision to clamp down on that", he said.
"We are sending a powerful signal to the world: we're going to defend our workers, protect our jobs and finally put America first", he said."That is the priority of the Turnbull Government".
But Mr Dutton denied they were targeted at a particular religion.
But he expected some businesses would end up paying more.
"Membership of the Australian family is a privilege and should be afforded to those who support our values, respect our laws and want to work hard by integrating and contributing to an even better Australia", Mr Turnbull said.
"This is about putting Australians first, making sure Australians can get Australian jobs first".
The list of occupations that qualify for the new visa will be sharply reduced.