Australian Employers Exploit Migrant Workers Using ABNs

New Exploitation Method Using ABNs

A large-scale study commissioned by the Attorney-General's Department and conducted by the Australian National University's (ANU) Migrant Justice Institute surveyed approximately 10,000 migrant workers, revealing that cash payments are no longer the primary means of wage exploitation.

Associate Professor Bassina Farbenblum, who led the research, stated that employers are now shifting to requiring ABN registration. An ABN is an 11-digit unique business identifier, and when employers classify workers as independent contractors rather than employees, no employment records are created, allowing them to evade obligations under the Fair Work Act to pay minimum wages and various entitlements.

More than one-third of surveyed migrant workers were registered under ABNs, a rate more than four times higher than in the general workforce. Still, one in four workers receives part or all of their wages in cash.

$3.18 Billion in Unpaid Wages Annually

According to the research, two-thirds of migrant workers are not receiving the wages they are entitled to under the Fair Work Act. Looking at international students alone, approximately $3.18 billion in wages goes unpaid annually.

The report emphasized this is not coincidental and is not merely a problem of a few bad employers.

Associate Professor Farbenblum explained that the more severe the wage exploitation, the more likely other forms of exploitation occur, such as passport confiscation, long hours without breaks, and threats of violence. For migrant workers in particular, threats to report them to immigration authorities are frequently used when they raise concerns, and many remain silent out of fear of losing their visas.

Extremely Low Utilization of Reporting Systems

The Department of Home Affairs introduced a temporary visa in 2024 allowing workers to remain in Australia for up to 12 months after their existing visa expires to pursue workplace exploitation complaints. A protection policy is also in place not to cancel visas for visa condition violations related to workplace exploitation.

However, concerns remain that very few temporary visa holders actually report exploitation. The ABC inquired with the Department of Home Affairs about utilization rates of migrant worker protection systems but has not yet received a response.

Mai (pseudonym), an international student who worked at a hospitality business in Canberra, disclosed experiencing exploitation where her employer paid below-minimum-wage fixed salaries including weekends and recorded reduced working hours, but she was afraid to speak up. She said most of her international student friends also do not receive proper wages but accept and follow the situation because they need the income.

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