A report released today warns the problem of human trafficking for exploitation in New South Wales is "far more widespread than anyone would care to estimate".

The state's Community Relations Commission inquiry found that human trafficking and slavery is being under-reported.

It includes instances where people are forced into domestic servitude or made to work for free, or in return for accommodation.

The commission is making number of recommendations, including the establishment of a ministerial-level Human Trafficking Advisory Council and a nationwide compensation scheme for victims.

The report says that while the media's focus is typically on exploitation of women in the sex industry, the inquiry heard evidence that exploitation more frequently occurs in family homes and businesses.

Key report findings: Slavery is far more widespread than the public would care to estimate

Slavery is far more widespread than the public would care to estimate Exploitation occurs more frequently in family homes and businesses

Exploitation occurs more frequently in family homes and businesses Human trafficking and slavery is under-reported

Human trafficking and slavery is under-reported Domestic servitude in return for "free" accommodation is area of great concern

Domestic servitude in return for "free" accommodation is area of great concern Nationally there are about 300 people identified as having been victims of human trafficking

Nationally there are about 300 people identified as having been victims of human trafficking Report recommends ministerial level Human Trafficking Advisory Council and a national victims compensation scheme be set up

Stepan Kerkyasharian, who has chaired the Community Relations Commission for the past 24 years, says the issue is affecting men and children, as well as women.

"Sometimes it may start innocently 'why don't you come in and do some extra work, why doesn't your partner come and work in the restaurant on the weekend' and before you know it the person is completely involved in doing work in many cases for no remuneration at all," he said.

"Usually perpetrators rely on the strength of their standing, their power in the community - whether their power is derived though money or community status or whatever - all those things come together to contribute to the oppression of the victims."

Mr Kerkyasharian says one woman was so fearful of the ramifications of speaking out at the inquiry that she gave evidence in a separate room.

"Now that says a lot about the level of fear someone is living under," he said.

"The important thing is a very important message be given to the community and be given repeatedly by opinion makers, by leaders, that this is not acceptable in our society."

Domestic servitude in return for "free" accommodation is a particular area of concern to the commission.

"Before you know it that person is being used as a maid in the house basically for no remuneration and in extreme cases it may also involve sexual harassment and even assault," he said.

Associate Professor Jennifer Burn from Anti-Slavery Australia says her organisation is really worried about women in domestic servitude.

"There've been a number of cases emerging of women who are exploited in forced labour situations in private homes," she said.

"This is an area that's effectively invisible and most people are unaware of that form of human trafficking."

Associate Professor Burn say one recent Queensland case is a good example.

"A woman was in a sham marriage, exploited in forced labour in a takeaway shop on a main street in a country town and then after she'd finished each day she went to the family home and worked in domestic servitude," she said.

"She had no control over her life, her passport was taken, and she was effectively imprisoned.

"Really there's a responsibility on all of us to inquire further where possible if we have a concern about what we might think is a form of abuse and alert authorities.

"We now have new law that addresses forced marriage and forced labour."

Associate Professor Burn says Anti-Slavery Australia provides confidential legal advice and support to vulnerable workers.

"We have contact with 70 people who have experienced human trafficking in Australia," she said.

"Nationally there are about 300 people who have been identified by Australian law enforcement, but we don't know what the real numbers are and there are emerging forms of trafficking that are not on the radar yet."