Labor in PM's sights over foreign workers

Malcolm Turnbull is aiming for the higher political ground on foreign workers, taking Labor to task over its administration of the 457 visa system while his government introduces a tighter regime.

The prime minister, in a speech to a business breakfast at Parliament House on Wednesday, pinpointed the types of jobs temporary workers from overseas had been taking from Australians in recent years.

"When you look at the list of skills on the list we inherited from Labor it's laughable," Mr Turnbull said, citing auctioneers, driving instructors and workplace relations advisers.

Even radio announcers.

"I don't think any of you would imagine a shortage of local talent in that regard."

Mr Turnbull debunked Labor's argument the mining boom was responsible for a spike in the number of foreign workers during Opposition Leader Bill Shorten's time as employment minister.

Less than 10 per cent of the 126,300 high was used by the mining industry.

Two-thirds went to jobs in Sydney and Melbourne, Mr Turnbull said.

Under his government's replacement regime, foreign workers initially will have access to a two-year visa.

The "grab bag" of 650 occupations under the 457 scheme will be reduced by about 200.

An extended four-year visa will be limited to 183 occupations, with tighter eligibility rules, including a higher standard of English and criminal checks.

Foreign workers must supplement and not replace hard-working Australians, the prime minister insisted.

Employers who flout tougher labour market tests before hiring foreign workers will be banned from the new system.

Mr Turnbull also flagged changes to citizenship rules for permanent skilled migrants, so they are consistent with Australia's cultural values.

"They'll ensure that each new migrant has the skills and outlook to contribute to Australia and our economy in the way we need them to," he said.

"This ability to hit the ground running will benefit both our migrants and our nation by helping them integrate into our culture and our workforce."