The exploitation of migrant workers in Australia needs to stop. Exploitation hurts migrants, but it also weakens the bargaining power of Australian workers, harms businesses that do the right thing, damages our global reputation, and undermines confidence in our migration program.

Up to 16 per cent of recent migrants are paid less than the national minimum wage, compared to up to 9 per cent of all Australian workers. Recent migrants are 40 per cent more likely to be underpaid than long-term residents, even after accounting for the fact that migrant workers are typically younger, and work in less-skilled jobs in industries where exploitation is more common.

Key recommendations:

1. Visa rules that increase migrants’ risk of exploitation should be reformed.
2. Workplace and migration laws should be strengthened and better enforced to deter exploitation.
3. Migrants should be given more help to reclaim lost wages.

These reforms would cost $115 million a year. That should be covered by a levy on select temporary visas set at $30 for each year of work rights the visa offers (raising $45 million a year) and by the larger penalties paid by employers who underpay their workers (at least $70 million a year).

Exploitation of migrant workers – who are often young and vulnerable – is a blight on Australia’s claim to be the land of the 'fair go'. This report shows how the government can stamp it out.