Racing Australia has successfully negotiated changes to the federal government's skilled migration occupation policy regarding overseas workers in the thoroughbred racing and breeding industry.

RA chief executive Barry O'Farrell said the 457 visa modifications would be welcomed by the industry which relies heavily on skilled foreign workers.

"Racing Australia commends Immigration Minister Peter Dutton's early acknowledgement of the potential problems faced by the thoroughbred racing and breeding industry and his department's efforts to resolve them," O'Farrell said.

"Mr Dutton was very clear: if we could demonstrate the proposed changes would damage Australia's $5 billion racing industry he would act.

"Working with all industry sectors, we prepared a strong case and we're delighted Mr Dutton has responded positively."

O'Farrell said the thoroughbred industry's use of skilled migration visas was relatively small compared to other industries but those employed filled roles critical to the ongoing operation of the horse racing and breeding sectors.

O'Farrell said RA would work with the federal and state governments to ensure the new Skilling Australians Fund helped equip locals with the skills and training required to fill critical jobs in the industry.