Victoria is stepping up protections for migrant workers after authorities uncovered serious cases of overcrowded and unsafe accommodation linked to labour-hire companies. Under new rules, providers that fail to meet accommodation requirements can face licensing action and penalties of more than $160,000.

The issue extends beyond housing. A 2026 University of Technology Sydney study found 65% of migrant employees surveyed were paid below their legal entitlements, while 36% were paid below the National Minimum Wage. Workers in the study experienced an average underpayment of $8.80 an hour. The research also found 35% worked on an ABN, more than four times the rate in the wider workforce.

The problem is particularly significant in horticulture. A Fair Work Ombudsman investigation found that 83% of employers investigated in Victoria’s Yarra Valley and Mornington Peninsula failed to meet their legal obligations, while 100% of the labour-hire firms investigated breached workplace laws. Authorities have warned that temporary migrant workers can be particularly reluctant to report exploitation because of their vulnerable employment situations.

Victoria has already taken major enforcement action. In May, the state’s Labour Hire Authority announced $830,000 in penalties against an unlicensed labour-hire company and its director following exploitation of migrant workers.

The crackdown comes as Australia continues to rely heavily on migrant workers across agriculture and other essential industries. In June 2026, 32,645 workers were participating in the Pacific Australia Labour Mobility (PALM) scheme, including more than 16,000 long-term workers.

Advocates say stronger inspections and enforcement are essential to ensure migrant workers have both fair employment and safe, habitable housing