From January 2025, new laws will make wage theft a criminal offence across Australia, introducing strict penalties for businesses and individuals who intentionally underpay employees. An employer will commit an offence if they are required to pay an amount under the Fair Work Act or an industrial instrument (such as wages or superannuation) and intentionally engage in conduct that results in failing to pay those amounts on or before the due date. The move complements existing state legislation in Queensland, Victoria, and Western Australia.

Companies found guilty of intentional underpayment could face fines of either the greater of three times the underpayment amount or $7.825 million, with a flat penalty of $7.825 million if the underpayment amount cannot be determined. Individuals can face up to 10 years in prison, fines of either three times the underpayment amount or $1.565 million, or a flat penalty of $1.565 million if the underpayment amount cannot be determined. Civil penalties for non-small business employers who contravene underpayment laws will also increase significantly, potentially reaching up to three times the value of the underpayment or the relevant penalty unit amount.

The Fair Work Ombudsman will also have enhanced powers to investigate and prosecute wage theft cases, making it essential for businesses to comply with the law.