Australia migrant worker survey reveals widespread wage exploitation

A national survey has uncovered widespread exploitation of migrant workers across Australia, with international students alone estimated to be losing $3.18 billion in unpaid wages every year.

The findings come from Off the Books: Inside Australia's Hidden System of Migrant Worker Exploitation, a new report by the Migrant Justice Institute, led by academics at UNSW Law & Justice and University of Technology Sydney Law. Based on responses from nearly 10,000 migrant workers, the study is the largest national survey ever conducted into migrant working conditions in Australia.

The report found that two-thirds of migrant employees were paid below their legal entitlements under the Fair Work Act, while more than a third earned below the National Minimum Wage. 

Researchers say the problem is deeply embedded in industries relying on temporary visa holders, including international students, backpackers and sponsored workers.

The survey also highlights growing misuse of Australian Business Numbers (ABNs), with 35% of migrant workers engaged under ABN arrangements. Researchers argue many of these workers were effectively employees but classified as contractors to avoid paying minimum wages, superannuation and other entitlements.

The implications stretch beyond workers themselves. Researchers warned that businesses complying with labour laws are being undercut by competitors using exploitative wage practices to reduce costs. The report also raises concerns about modern slavery risks, hidden cash payments and falsified payroll records.

Key findings from the report include:

• 65% of migrant employees were underpaid
• 36% earned below the National Minimum Wage
• Average wage underpayment reached $8.80 per hour
• International students were underpaid around $61 million every week
• 85% of ABN workers earned less than they would as formal employees
• 38% of workers were employed casually without guaranteed hours

“These were migrant workers whose shifts could be easily cut or stopped altogether in retaliation for complaining about their conditions. Unsurprisingly, casual and ABN workers were twice as likely to be paid less than the National Minimum Wage - let alone casual loading and penalty rates,” said Bassina Farbenblum, MJI Co-Executive Director, A/Prof.

“This isn't a gap in the system. It is the system. Data shows for the first time that underpayment, misuse of ABNs and falsified records are not separate problems - they operate together as a single architecture of exploitation when it comes to migrant workers,” said Laurie Berg, MJI Co-Executive Director, A/Prof.

Researchers say stronger enforcement, greater accountability for businesses and better protections for temporary visa holders will now be critical as pressure grows on the Australian government to respond.