Is wage theft a criminal offence in Australia?

Yes. Commonwealth wage theft has been a criminal offence under Fair Work Act s 327A since 1 January 2025 — maximum 10 years imprisonment for individuals plus civil penalties up to A$1.565M per serious contravention. Victoria (Wage Theft Act 2020, in force 1 July 2023) and Queensland (Criminal Code, since September 2020) have separate state laws with their own penalties — Vic up to A$1.65M individual, QLD up to A$13.7M body corporate.

How far back can I claim unpaid wages?

6 years under Fair Work Act s 545. You can claim back to mid-2020 if you've been systematically underpaid that long. Use the Wage Theft Calculator to total your back-pay plus interest (Fair Work Commission typically awards ~10% p.a. on unpaid wages).

Is it wage theft if my employer made an honest mistake?

Civil penalties (back-pay + interest + civil contravention penalty) apply regardless of intent — accidental underpayment is still a Fair Work Act breach. Criminal wage theft (Cwlth s 327A, Vic, Qld) requires the conduct to be deliberate or knowing. Most honest-mistake underpayments are resolved at the civil/FWO stage without criminal exposure, especially with voluntary self-disclosure.

Wage Theft Calculator

Calculate your back-pay + interest under the 6-year limit, plus the employer's exposure to criminal charges (Fair Work Act s 327A in force 1 Jan 2025) and civil penalties up to A$1.565M per serious contravention.

Last verified: 16 May 2026

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WAGE THEFT — CRIMINAL OFFENCE FROM JANUARY 2025

Commonwealth wage theft is a criminal offence under Fair Work Act s 327A from 1 January 2025. Maximum 10 years imprisonment for individuals; civil penalties up to A$1.5M+ per serious contravention. State-level wage theft laws also apply in Victoria and Queensland.

What you should have been paid ($/wk)

What you were actually paid ($/wk)

Weeks underpaid

Up to 312 (6-year recovery limit)

Your state

Underpayment appears intentional or systematic (not accidental error)

Your recovery

Per week shortfall

$130

Total underpayment

$6,760

Plus interest (~10%)

$7,436

Plus you may be entitled to liquidated damages, super shortfall (separate ATO process), and your legal costs if litigated.

Criminal exposure for the employer

Commonwealth wage theft (Fair Work Act s 327A, in force 1 Jan 2025): Maximum 10 years imprisonment for individuals; civil penalties up to A$1.565M per serious contravention.
Victoria (criminal: max 10yr imprisonment / $1.65M individual) (state law in force since 1 July 2023). May apply in addition to federal charge.

Civil penalties (always available)

The Fair Work Ombudsman can pursue civil penalties on top of the back-pay:

Individual (e.g. director or HR manager involved): up to $98,100 per contravention (serious contravention).
Body corporate: up to $490,500 per contravention (serious contravention).

How to recover

Document everything: payslips, time records, your award + classification, period of underpayment.
Raise it in writing with payroll first — many genuine errors are corrected at this stage.
If not corrected: submit a Fair Work Ombudsman online tip-off (anonymous option available) or call 13 13 94.
Serious intentional underpayment + Vic/Qld → also report to state wage theft inspectorate.
For amounts <$20k, small claims wage recovery via Federal Circuit and Family Court. Larger amounts or complex matters: employment lawyer.

Wage Theft Is Now a Crime: Australia's New Criminal Underpayment Laws 2026

Australia has criminalised intentional wage theft from January 2025. Understand the new penalties (up to 10 years jail), how intentional underpayment is distinguished from honest mistakes, the Voluntary Small Business Wage Compliance Code, and what to do if you are being underpaid.

Wage Theft Is Now a Crime: What Workers Need to Know

Wage theft became a federal criminal offence on 1 January 2025. Learn about the penalties (up to 10 years prison, $7.8M fines), what counts as wage theft, the small business exemption, how to report it, FWO vs police, and how to recover underpaid wages.

Wage Theft Is Now a Criminal Offence: 10 Years Prison for Employers (2025)

From 1 January 2025, intentional underpayment is a criminal offence carrying up to 10 years imprisonment. Learn about the new wage theft laws, penalties, enforcement, and how to report your employer.

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General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.