The PALM scheme has been criticised for tying workers to a single sponsoring employer, limiting their ability to change jobs. In April 2025 it was reported that 7,000 PALM scheme workers had absconded from their employers over the past five years. A 2024 report from the New South Wales Anti-Slavery Commissioner highlighted modern slavery risks associated with the PALM scheme. The scheme has also been criticised for providing workers with less access to government programs and benefits than Australian residents.
The Australia Institute has noted that PALM workers are often taxed at a higher rate than Australian residents and have limited access to their
superannuation savings. Some workers have been overcharged by their employers for services like accommodation and transport, and many have deductions made from their pay to cover the cost of their flights to Australia. President of Timor-Leste
José Ramos-Horta criticised the overcharging of Timorese workers for accommodation and transport by PALM scheme employers in an October 2024 speech, saying that the PALM scheme has a positive effect on the Timorese economy, but that it is exploitative in its current form. Pacific island leaders have also expressed concerns that the benefits of the PALM scheme for Pacific island nations and workers are exaggerated. PALM workers in Australia make up 9% of the Tongan working age population, 5% of the working age population of Vanuatu, and 3% of the working age population of Samoa. This has led Pacific leaders to express concerns about
brain drain and the effects of the PALM scheme on their domestic economies. The scheme has also been criticised for creating social problems in Pacific countries, including the phenomenon of families being abandoned by spouses living in Australia. The scheme has also received criticism for its rate of worker deaths and injuries. 29 PALM scheme participants died in the 2022–23 financial year, and 233 critical incidents involving worker injuries were recorded between 2020 and 2023. Between 2021 and 2023, between 10 and 14 participants died in boating and car accidents, 17 died due to medical conditions, and the cause of 17 additional deaths remained under investigation as of December 2023. The rate of deaths among PALM scheme workers was described as "staggering" by a former deputy secretary of the Australian Department of Immigration in 2025. In August 2024, representatives of the Fijian government announced plans to visit Australia to investigate working conditions after a Fijian woman died of a
brain tumour while working at an Australian
abattoir, with some former coworkers alleging that workers had faced restrictions around accessing
sick leave and medical care. Researchers and physicians have also reported that women participating in the PALM scheme who become pregnant often seek abortions to remain in Australia and to comply with their visa conditions. == References ==