The changes have also hit a number of government agencies that are in the middle of a global recruitment process for a new boss.

The Australian Securities and Investments Commission has been searching for a new chairman all year but recruiters are having difficulty filling the post. Two international candidates, including former chief executive of UK regulator the Financial Conduct Authority Tracey McDermott, have pulled out of the race.

The government-owned Australia Post is searching for a more modestly paid replacement for CEO Ahmed Fahour ahead of his departure in July. Last week, the federal government also advertised for a CEO for its new Inland Rail project, and recruitment for the new Western Sydney Airport is expected to begin shortly.

Managing partner of Heidrick & Struggles Sydney, Guy Farrow, warned the changes would limit the pool of talent and hold back the ability of the agencies to attract world class talent.

"Government-owned corporations can often find themselves in the same global war for talent in which they too will be looking at international executives to provide leadership to their business," Mr Farrow said.

New AEMO chief executive Audrey Zibelman is believed to be on a 457 visa. Chris Hopkins

Unintended consequences

The 457 visa changes have already triggered unintended consequences with Prime Minister Malcolm Turnbull forced to allay concerns the new visa policy will prevent universities hiring academic and research talent from overseas. Mr Turnbull has also had to reassure New Zealand Prime Minister Bill English the changes will not undermine an agreement to fast-track New Zealand citizenship.


Trade experts have warned the restrictions for chief executives to two-year visas may breach the country's obligations to the World Trade Organisation and newly appointed Graincorp chairman Graham Bradley warned it could push CEO pay higher and potentially force businesses to move their operations offshore.

Graincorp CEO Mark Palmquist is among a host of leading CEOs on 457 visas including British-born David Jones CEO John Dixon, Colombian-born Orica CEO Alberto Calderon and US-born private-equity KKR Australian head Scott Bookmyer, who will also have to re-apply under the new rules when their visas expire.

Business leaders and the Business Council of Australia have condemned the changes, warning they will hurt business and the economy. Blood products giant CSL is hopeful the government will modify changes to 457 visas for foreign workers, which they warn would be "devastating" for the company and other biotech firms in their current form.

The 1700km inland rail from Melbourne to Brisbane is looking for a CEO. Supplied

A spokesman for Immigration Minister Peter Dutton confirmed the government will regularly review the occupation lists. The first review is due on July 1.