The report surveyed more than 4000 overseas workers who had been granted a second-year 417 visa after working in regional Australia.

After an extensive two-year national Inquiry consulting a diverse range of stakeholders and regional visits, the Fair Work Ombudsman's report contains new insights into the experiences of backpackers when they work in Australia.

While 38% of respondents were positive about their regional work experiences, the report also indicated serious concerns about the working conditions for backpackers, particularly while undertaking their 88 days of specified paid work.

The survey findings indicated that a significant majority of recipients felt that employers take advantage of people on working holiday visas by underpaying them, and most agreed that backpackers were unlikely to complain about their working conditions in case their work is not signed off by the employer.

Fair Work Ombudsman Natalie James said those fears were reinforced by the experiences of some 417 visa-holders.

The survey found 35% believed they were paid less than the minimum wage, 14% revealed they had to pay in advance to get regional work and 6% had to pay an employer to 'sign off' on their regional work requirement.

Deductions from pay were also common and often not agreed in writing as required by the law (only 21% of respondents say written agreement was provided).

James said the survey confirmed that overseas workers seeking regional work to satisfy the 88 day requirement and obtain a second-year 417 visa are particularly vulnerable to exploitation.

She said the Working Holiday Maker program, designed to facilitate cultural exchange, is in some cases being treated by both visa holders and employers as a 'ticket' to work in Australia.

"These dynamics may be impacted by the relatively low minimum wages in countries of origin of some backpackers," James said.

"For example, the minimum wages in Taiwan and South Korea over the course of the Inquiry were less than half Australia's current minimum wage of $17.70 per hour.

"The Inquiry findings show that while many 417 visa-holders who work in Australia have a positive experience, many are being subjected to underpayment or non-payment, unlawful deductions, sexual harassment, unsafe working conditions and other forms of exploitation.

"The backpacker labour-force is vital to some industries associated with food production in regional areas but we are at risk of it being a black-market, exploited labour-force if the settings remain the same."

Following the report, the Fair Work Ombudsman has issued a number of recommendations focused on: improving the regulatory framework; and enhancing information, education, compliance and support.