This article is super confusing. It doesn't sound like they are replacing the employees with 457s though it sounds like they are outsourcing everyone but the 457s.
>“Australia has real depth in IT skills so it is quite extraordinary for the NSW government to bring in 32 workers under 457 visas,” Mr Shoebridge said.
Anyone that has had to hire for technical roles in Australia can tell you it's really not this easy Australia definitely has depth but it doesn't have breadth and the highly skilled tech people are in such demand that they are rarely available for hiring. So unless you're hiring for a junior role you probably will have a very difficult time finding highly skilled employees. I'd still like to see more focus in getting juniors hired and trained though so that in a few years we can have more resources available at the mid to upper levels.
Side note I use to be a 457 and I never felt subservient in anyway either.