Australia to abolish 457 work visas
theage.com.au
theage.com.au
For international readers, the 457 is quite similar to the h1b visa and suffers many of the same abuses. More abuses actually, there are "customer service managers" waiting tables and other entry level workers that are on this "skilled" visa.
Personally, I think this is pandering, after the damage has been done.
Anecdotally, one job in Melbourne about three years ago comprised about 20-30 457 visa developers, and 3-4 local developers. Either there is a huge shortage and we missed the boat on education, or companies are abusing it (imo).
Edit: Where I was going with that last thought: companies weren't happy paying the IT rates they were (which to my mind were less than most trades and most professions, in any case), so they've imported workers that will work for less. Companies still want this, and Turnbull as a result still wants this, so I wouldn't worry about finding a way around it if it becomes an issue.
The bigger question would be if it's renewable and still valid as an immigration pathway (if that's what OP was after).
Re: shortage vs. abuse, perhaps it's a bit of both. I'm joining a small dev team of 4 locals. The hiring and visa process wasn't simple and probably quite costly. The pay's not bad either so I can't imagine that they didn't look for locals to hire.
The 457 system, similar to the student visa before it, was being abused by companies. So the government has been working on fixing the loopholes in the system for quite a while now.