From 1 January 2025, new workplace laws in Australia make wage theft a criminal offence. This means if an employer intentionally fails to pay wages, superannuation, or other entitlements, it is no longer just a civil matter—it is a crime.
What Has Changed
In the past, underpayment was mainly dealt with through civil penalties, usually fines. Now, under the new rules, deliberate wage theft can lead to jail time for individuals and very large fines for companies.
Penalties for Wage Theft
- For individuals (such as business owners or executives): up to 10 years in prison or fines up to AUD 1.65 million, or three times the amount underpaid, whichever is greater.
- For companies: fines up to AUD 8.25 million, or three times the amount underpaid.
Honest Mistakes Are Not Crimes
The law is designed to punish intentional underpayment, not genuine mistakes. If an employer makes a miscalculation but fixes it, it will not be treated as a criminal offence.
Protections for Businesses
- Small businesses (with fewer than 15 employees) can follow a Wage Compliance Code, giving them a safe harbour from criminal charges if they act in good faith.
- All businesses can work with the Fair Work Ombudsman to self-report issues and correct them.
Why This Matters
Wage theft has been a long-standing issue in Australia, costing workers billions of dollars. The new law is intended to protect employees, close loopholes, and ensure fair pay for everyone. At the same time, it reminds employers to take payroll obligations seriously.
Wage Theft Law: Before vs After
| Aspect | Before 1 Jan 2025 | From 1 Jan 2025 |
|---|---|---|
| Underpayment | Civil offence (fines only) | Criminal offence if intentional |
| Penalty for people | Fines only | Up to 10 years jail or big fines |
| Penalty for company | Fines only | Up to AUD 8.25M or 3× underpayment |
| Honest mistakes | Still fined | Not a crime if fixed quickly |
| Small business help | None | Safe harbour with compliance code |
Easy to start,
intuitive to use
