Study: ABNs in Australia increasingly used to underpay migrant workers
In Australia, some employers are increasingly asking migrant workers to obtain an Australian Business Number (ABN), which may be used to avoid providing them with the labour protections they are entitled to, ABC News reports. An ABN is a unique 11-digit number that identifies a business.
According to a study on the exploitation of migrant workers, co-authored by Migrant Justice Institute founder Associate Professor Bassina Farbenblum, more than one-third of migrant workers in Australia have an ABN. This is more than four times the corresponding rate among the country’s overall workforce.
Underpayments and sham contracting
According to Farbenblum, paying wages in cash was previously a common way of concealing employment relationships. Researchers are now recording increasingly frequent use of ABNs. At the same time, one in four surveyed migrant workers still receives at least part of their earnings in cash.
The deliberate misclassification of an employee as a contractor is called sham contracting in Australia. This practice may allow employers to avoid providing basic labour protections, including the minimum wage. The study, which surveyed nearly 10,000 migrant workers, states that international students in Australia alone may be underpaid by about $3.18 billion annually.
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Workers’ complaints
Farbenblum said that substantial underpayments are often accompanied by other forms of exploitation: passport confiscation, prolonged work without breaks and, in some cases, threats of harm or violence. According to her, migrant workers may also be threatened with being reported to immigration authorities if they complain.
An international student named Mai, who gave this name to protect her identity, spoke about working at a hospitality venue in Canberra. She said her employer called her in for shifts at short notice, paid a flat rate below the minimum wage even on weekends and sometimes rounded down her hours worked.
In 2024, Australia’s Department of Home Affairs introduced a temporary visa that allows people to remain in the country for up to 12 months after their previous visa expires in order to pursue a workplace exploitation complaint. At the same time, ABC News notes that few temporary visa holders report such cases; the department did not respond to a request for the number of applicants for protection.
