"Controls on Work Permits for Migrants to Australia?"

I heard that certain Australian states put in requests for a number of work permits and that these selected migrants are only permitted to work in their state?

Contractor Taxation Vocabulary: 

Generally speaking all visas in Australia have a national range - i.e. you can work in any state or territory. If you get a regional visa - most commonly with a working visa or working holiday visa, then you'll need to spend a certain amount of time in that area working to satisfy the visa requirements. Under these Skilled - Regional Sponsored (Provisional) visa's subclass 119 and 857 you are sponsored by an employer and sign an agreement with them that you will live in a regional or a low population growth metropolitan area in Australia - specified at the time the visa is issued. You will be expected to live there for the duration of the visa or until you can get sponsorship for permanent residence under the Regional Sponsored Migration Scheme. Of course living or studying in "regional Australia" will help your point score for General Skilled Migration - so you get to the permanent residence faster than if you're in an urban area. We have even got a list of the areas which qualify as a Regional Australia / low population growth metropolitan areas.