Allegations of Exploitation Under Australia’s PALM Scheme
A Timorese worker claims he returned home with just $1,500 after five months of six-day weeks—despite a major labour-hire company charging him nearly $10,000 in deductions.
Deonizio Martin Soares arrived in Australia in September 2025 under the Pacific Australia Labour Mobility (PALM) scheme to work on a blueberry farm in Corindi, New South Wales. Employed by Madec Australia, a not-for-profit labour-hire company with about $150 million in annual revenue, Soares held a nine-month visa. Yet his contract was for a shorter period, and he worked only five months.
“After deductions for airfares, visa, accommodation, van rental, health insurance and other costs, I returned to Timor-Leste with about $1,500 in savings.”
SBS News spoke with three Timorese workers, including Soares, who reported similar experiences. Two female workers said they were paid the lowest piecework rate and relied on male colleagues to help them keep up.
Deductions and Conditions
Over 23 weeks, Madec deducted $9,711 from Soares’ wages (excluding tax). The breakdown includes:
- $1,950 for airfares
- $700 for internal flights
- $170 per week for accommodation
- $65 per week for van rental
- $20.95 per week for health insurance (which cost $14–$17)
Accommodation conditions were tight. In Corindi, women shared a house with 48 people—eight per room—each paying $179 per week. In Devonport, workers lived in single-room caravans with four bunk beds, each paying $170 per week.
Workers reported that van use was restricted to work, grocery shopping and church, with a 9pm curfew in Devonport and 8pm elsewhere.
Background on Madec Australia
Madec Australia is a registered charity that subcontracts PALM workers to farms across five states. The company’s practices have drawn scrutiny for years:
- 2022: A Senate committee heard that a worker named Aleki took home just over $100 per week after deductions. Then-CEO Laurence Burt rejected allegations of improper conduct.
- 2024: The Victorian Labour Hire Authority imposed licence conditions after finding “substandard” accommodation, requiring Madec to repay $70,000 and improve standards.
- Executive pay: The company’s 2022-23 financial report shows then-CEO Laurence Burt and the company secretary jointly received $605,000 in remuneration. In 2023, the board approved remuneration for all nine directors.
Lawyer Dana Levitt, who has acted for seasonal workers, says Madec routinely charges for items it should provide free, including hand sanitiser and masks during COVID.
Malia Sykes of Coffs Coast Multicultural Society told a NSW parliamentary inquiry that in late 2023, Madec dismissed about 18 Samoan workers after one was arrested for an alleged rape of which he was later cleared.
Dr Joe McGirr, chair of the NSW Modern Slavery Committee, says the inquiry will call for a review of Madec’s charity status.
Statements and Government Response
Timor-Leste President Jose Ramos-Horta described the allegations as “disheartening” and said “compliance must be mandatory.”
Federal Government: A spokesperson for Minister for Home Affairs Tony Burke said the government has “zero tolerance” for exploitation and noted that the Strengthening Employer Compliance Bill commenced on 1 July 2024, giving Home Affairs tools to address non-compliance.
National Anti-Slavery Commissioner Chris Evans declined to comment on specific claims but described continued exploitation as “very concerning.”
Response from Madec Australia
Madec Australia did not respond to SBS News’ requests for comment.