BRENDAN TREMBATH: A report commissioned by Victoria's Government has found that overseas students are regularly exploited by unscrupulous landlords and employers.

The exploitation could threaten Victoria's share of the lucrative international education market.

But the State Government is downplaying the worst of the findings.

Samantha Donovan reports.

SAMANTHA DONOVAN: A third of all overseas students coming to Australia choose to study in Victoria; contributing nearly four billion dollars to the state's economy last year alone.

But reports of racism and exploitation by landlords, employers and education agents forced the state government to set up the Overseas Student Experience Taskforce in September.

It's reported that the vast majority of students have a good experience but there are several emerging problems that could threaten Victoria's ability to keep attracting overseas students.

Mark Choo represents the National Liaison Committee for International Students which made a submission to the taskforce focussing on the accommodation shortage, safety issues and the quality of courses.

MARK CHOO: A big problem is of rouge, off-shot agents which have given international students misleading information where they've come with these expectations of residency and rolling the course where they will get residency when they come here, it's totally different.

The student has been told he'll pay a certain amount of fee and then when he gets here he gets told he'll have to pay a much more expensive fee as well as the course not guaranteeing residency.

SAMANTHA DONOVAN: The taskforce also found restricting international students to working only 20 hours a week was causing unforeseen problems.

In trying to work extra hours in breach of their visas, some students were putting up with poor workplace conditions fearing that their employer could report them to the immigration department if they complained.

One student reported to the taskforce that she was being paid nine dollars an hour whereas her Australian workmates were being paid $14 an hour to do the same, unspecified job.

In light of this sort of complaint, the taskforce has recommended that the Department of Immigration consider allowing overseas students to work more hours, providing that their academic performance is satisfactory.

Victorian Skills and Workforce Participation Minister Jacinta Allan was putting a positive spin on the report findings.

JACINTA ALLAN: Victoria has a very strong reputation as a provider of high quality training and that's why we're seeing increasing numbers of students choose to come and study here in Victoria.

And we want to look at how we can enhance the experience of students studying in Victoria which is why we welcome the release of the taskforce report and we'll now be examining its findings and recommendations that will be feeding into a broader strategy to be released in 2009.

SAMANTHA DONOVAN: Mark Choo from the National Liaison Committee for International Students thinks the problems identified in the report can be overcome.

MARK CHOO: I think as long as the government takes an active role in addressing these concerns and issues but in the long run, if these issues are not addressed, it definitely would affect the Victorian education industry.

BRENDAN TREMBATH: Mark Choo from the National Liaison Committee for International Students ending that report from Samantha Donovan.