Western Australia’s taxi industry is facing renewed scrutiny after an investigation alleged that an organised network of international students has been exploiting passengers, undercutting legitimate drivers and operating outside multiple regulatory requirements.

According to an investigation published by The West Australian, groups of taxi drivers—many allegedly holding Australian student visas—have developed sophisticated methods to overcharge passengers while coordinating their activities through large WhatsApp networks.

The report alleges the scheme primarily involves drivers from Pakistan and India who arrive in Perth already familiar with Australia’s passenger transport system, having reportedly received guidance before travelling to Australia.

The allegations have not resulted in criminal findings against the individuals mentioned, and many of the claims originate from whistleblowers and long-time industry participants interviewed during the investigation.

Among the practices alleged are drivers claiming that EFTPOS terminals or taxi meters are broken before requesting cash payments, deliberately selecting higher-priced fare settings that should only apply under specific circumstances, and arranging off-meter journeys that avoid normal booking systems.

According to the investigation, passengers can ultimately pay significantly more than regulated taxi fares, while legitimate operators lose customers to drivers willing to ignore industry rules.

Drivers are also alleged to share information through dozens of WhatsApp groups, where members exchange available jobs, warn each other about government compliance operations and coordinate cash fares outside official dispatch systems.

One whistleblower claimed some drivers even collaborate to overcharge passengers travelling in both directions so each driver benefits while avoiding commissions payable through booking platforms.

Veteran Perth taxi driver Jonathan Masih told the newspaper the situation has become financially devastating for drivers attempting to comply with regulations.

“We cannot earn enough to support ourselves or our families,” he said, blaming a large oversupply of vehicles and widespread non-compliance within parts of the industry.

Another experienced driver described the industry as “the wild west”, arguing that honest operators are struggling to compete against those allegedly ignoring licensing and fare rules.

The investigation also alleges that many drivers live in overcrowded share houses using so-called “hot bedding”, where multiple workers rotate through the same sleeping spaces in order to minimise accommodation costs.

Some drivers are reportedly provided with vehicles costing around $425 per week before beginning work.

Several of the allegations centre on Australia’s student visa system.

Most international students holding a Subclass 500 visa are permitted to work a maximum of 48 hours per fortnight while their course is in session, although they may work unlimited hours during scheduled study breaks. Breaching those work conditions can lead to visa consequences, including possible cancellation.

The investigation alleges some drivers work substantially longer hours than permitted while enrolled in courses they rarely attend.

It further claims that some students continue working even after their enrolments have been cancelled, although the report did not present evidence that such conduct is widespread across Australia’s international student population.

Officials quoted in the report suggested that responsibility for monitoring visa compliance does not rest with Western Australia’s transport regulator.

The Department of Transport reportedly said it has no authority to investigate the immigration status of passenger transport drivers.

The allegations come as authorities across Australia have increased enforcement efforts within the passenger transport industry.

In Western Australia, a joint compliance operation conducted by the Department of Transport, WA Police, the Australian Federal Police and Perth Airport previously identified a number of taxi and rideshare operators breaching transport regulations, although the majority of drivers inspected were found to be compliant. Authorities have indicated targeted compliance campaigns will continue.

Similar enforcement activity has also occurred in New South Wales and Victoria following complaints involving fare manipulation and unlicensed operations.

The investigation additionally links the alleged taxi practices to broader concerns surrounding so-called “phantom students”—people who enrol in Australian education providers but allegedly fail to actively participate in their courses after obtaining work rights.

Australia’s international education sector has experienced increased government scrutiny over visa integrity during the past two years, with federal authorities introducing tighter compliance measures aimed at reducing abuse of the student visa system while maintaining the country’s attractiveness as a study destination.

Education providers have also acknowledged that student retention varies significantly across institutions and source countries, although universities stress that the overwhelming majority of international students comply with Australian laws and complete their studies.

The allegations outlined in The West Australian‘s investigation have generated renewed debate over whether existing oversight arrangements adequately address both transport industry compliance and student visa enforcement.

Industry representatives argue that stronger enforcement would help restore confidence among passengers while allowing compliant taxi operators to compete on a more level playing field.

At the same time, any broader response is likely to distinguish between alleged misconduct by individuals and the vast majority of international students, who contribute billions of dollars annually to Australia’s economy and comply with visa and employment requirements.

Whether further investigations or regulatory action follow the latest allegations remains to be seen, but the report has placed renewed pressure on transport regulators, immigration authorities and booking platforms to demonstrate how existing rules are being enforced.