Int’l Students Underpaid $3.18bn in Wages

Why It Matters

Systemic underpayment erodes fair‑wage standards, fuels a shadow economy, and exposes migrant workers to modern‑slavery conditions, demanding urgent regulatory overhaul.

Key Takeaways

• Report surveyed 8,370 temporary migrants, two‑thirds underpaid.
• International students lose about $40 million weekly, $2.1 billion annually.
• 34% reported forced‑labour indicators, signaling modern slavery risk.
• Recommendations include national labour‑hire licensing and stronger whistleblower protections.
• Government reforms deemed insufficient to stop widespread underpayment.

Pulse Analysis

The Migrant Justice Institute’s Off the Books report reveals a hidden crisis in Australia’s labor market. Surveying 8,370 temporary visa holders, it found that two‑thirds earned below the Fair Work Act minimum, with international students alone losing roughly $40 million each week—about $2.1 billion annually in U.S. dollars. Such systemic underpayment depresses household incomes, fuels a shadow economy, and undermines the fairness of Australia’s award‑based wage system, which is supposed to protect all workers regardless of visa status. The financial leakage also distorts competition, allowing unscrupulous employers to undercut compliant businesses.

Beyond wages, the study flags modern‑slavery red flags: 34 % of respondents reported forced‑labour conditions such as unsafe workplaces, excessive hours and inability to quit. While Australian law guarantees a national minimum wage and entitles workers to superannuation, enforcement remains patchy, especially for labour‑hire firms that often conceal true employment relationships. The prevalence of sham contracts and misleading pay slips erodes trust in the regulatory framework and leaves vulnerable migrants exposed to exploitation without effective recourse. Victims often lack knowledge of their rights, further discouraging them from reporting abuses.

Policy makers face pressure to move from piecemeal fixes to a systemic overhaul. The report recommends a national labour‑hire licensing scheme, tighter scrutiny of concealment indicators, and expanded whistleblower pathways such as a dedicated Workplace Justice Visa. While the Albanese government’s 2022‑24 industrial‑relations reforms are a step forward, critics argue they fall short of addressing the scale of underpayment. A coordinated response that aligns immigration policy, higher‑education funding and workplace enforcement could restore fairness and protect Australia’s reputation as a safe destination for skilled migrants. Implementing these measures could also improve Australia’s compliance with international labour standards and reduce the risk of trade sanctions.