'Not fair and quite sad': Cohort of workers being underpaid by billions

Recent research has uncovered that numerous Australian employers are taking advantage of a loophole to underpay their migrant workers, with the total shortfall amounting to billions of dollars annually. Instead of resorting to the practice of paying cash-in-hand, the offenders are now requesting prospective employees to establish an Australian Business Number (ABN), all in an effort to circumvent compliance with the Fair Work Act.

International student Mai, in her first job in Australia, found herself enticed by the prospect of financial independence, but her experience soon turned sour as her employer began calling her incessantly, demanding her to work on short notice, often on weekends. Her wages, paid in flat rates below the minimum wage, were frequently rounded down on her paychecks, rendering her frustrated and disillusioned.

Mai's predicament is far from unique, as Professor Bassina Farbenblum, who founded the Migrant Justice Institute, revealed that international students alone may be short-changed by approximately $3.18 billion per year.

Farbenblum's major study, commissioned by the Commonwealth attorney-general's department, found that the more workers were underpaid, the higher the likelihood of experiencing exploitative conditions such as passport confiscation, long hours without breaks, and even threats of harm or violence. One of the most concerning revelations was the increasing use of ABNs instead of cash, allowing employers to evade record-keeping and make it nearly impossible for workers to claim their rightful entitlements under the Fair Work Act.

The Department of Home Affairs introduced a temporary visa in 2024 to enable individuals to remain in Australia for up to 12 months to pursue workplace exploitation claims. However, there are concerns that many temporary visa holders are reluctant to report instances of exploitation, fearing repercussions such as visa cancellation.

The ABC has reached out to the Department of Home Affairs regarding the uptake of migrant worker protections, but as of yet, no response has been provided. Mai's experience and the findings of Farbenblum's study paint a grim picture of the realities faced by many migrant workers in Australia.