In a shocking exclusion, international students have even been excluded from Australia’s Fair Entitlements Guarantee (FEG) scheme. This program offers vital financial assistance to workers who lose their jobs due to a company’s liquidation or bankruptcy. Amy, a current international student, used to feel safe in her ongoing perm part-time role over at International House Sydney. That all changed when TPG went into liquidation in January 2025, putting her in an unsafe position.
In 2025, the Albanese Labor government announced a five stage consultation process to reform the FEG. This case was decided after much media coverage exposed how some companies had grossly abused the program. The FEG is a tool to safeguard workers and give them both a measure of security. As written, it unfortunately excludes international students such as Amy, who make up a large part of our workforce. While Amy’s Australian colleagues were still able to access the FEG, Amy was left without any financial support.
That changed in 2019, when the Coalition government acted to release the Migrant Workers’ Taskforce report. The report further recommended the enlargement of the FEG to cover all migrant workers. Despite these important gains, not much has changed since. As such, lots of international students are made to feel vulnerable and unsure of their rights and protections in the workplace.
Amy expressed her dismay at the situation. “So I thought that I would be more protected if I had a permanent contract. Then, when this happened, I realised that as a migrant, I do not have the same rights,” she stated. Her experience is illustrative of the struggles faced by many international students. They often have undocumented gig and day jobs with no contracts.
The liquidator informed Amy that while the liquidation process was ongoing, those staff members unable to access FEG would be prioritized for repayment if funds remained after liquidation. This new prospect provides little comfort to Amy, who realizes she might never see any compensation at all. “I don’t think I will ever be compensated, because I doubt there’s money to be found,” she said. She’s looking to make sure no one has to go through what she did with her reforms.
Matt Kunkel, CEO of the Migrant Workers Centre in Victoria, said that was an urgent need to alter that. He argues that we should let international students and migrant workers use the FEG. “Our visa system is built around this idea that international students are here just to study,” he remarked. “The reality is that many of those international students are here working and studying in Australia.”
Felix Pirie, CEO of Independent Tertiary Education Council Australia, noted that international students face numerous challenges in accessing the FEG. He pointed out that many employers take advantage of the lack of familiarity international students have with Australia’s legal system. “I think that the biggest thing is that a lot of Australian employing businesses rely on the fact that international students will be unfamiliar with the legal system,” Amy echoed.
Pirie further highlights how this is compounded by the recent decline in applications from international talent. These students are looking for a new world-class education in Australia. “We saw a big downturn for students to apply, to come or even consider lodging an application to come to Australia,” he said. This decrease does not only reduce the number of students—it shrinks the workforce as well, even within the K-12 education space itself.
As these conversations continue, advocates are pushing for reforms that would more meaningfully shield international workers. Seri Feldman-Gubbay, senior solicitor at Redfern Legal Centre, described the failures of the FEG. In her remarks, she stressed how often these changes disproportionately affect international students and migrant workers. They form the backbone of a vital, vibrant workforce that fuels essential services, private sector industries and more, but basic protections have been stripped away when businesses go belly up.
Amy’s story should be a clarion call for policymakers and employers to do better. Her story illustrates the need for greater awareness of rights and the law regarding employment and discrimination. It highlights the need to do more to support international students in Australia. “I have not heard about this until it happened to me,” Amy said. “I think that every migrant should know that this is something that could happen to them.”
