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 fines of up to the greater of 3x the underpayment or A$1.82M for individuals (A$9.1M for companies) from 1 July 2026. Victoria (Wage Theft Act 2020, in force since 1 July 2021) and Queensland (Criminal Code amendments, since 14 September 2020) have separate state laws with their own penalties — Vic fines up to 1,200 penalty units for individuals (6,000 for companies) plus up to 10 years imprisonment; Qld carries up to 10 years imprisonment for stealing by employers (14 years for fraud as an employer).

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 fines up to the greater of 3x the underpayment or A$1.82M (A$9.1M for companies) from 1 July 2026.

Last verified: 23 July 2026

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; fines up to the greater of 3x the underpayment or A$1.82M (A$9.1M for companies) from 1 July 2026. 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; fines up to the greater of 3x the underpayment or A$1.82M for individuals, A$9.1M for companies (from 1 July 2026).
Victoria (criminal: max 10yr imprisonment; fines to 1,200 penalty units individual / 6,000 company) (state law in force since 1 July 2021). 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 $218,400 per contravention (serious contravention).
Body corporate: up to $5,460,000 per contravention (serious contravention).

Figures use the A$364 Commonwealth penalty unit (from 1 July 2026). Body-corporate maxima shown are for companies with 15+ employees; smaller companies face A$109,200 standard / A$1,092,000 serious. For underpayment contraventions, courts can instead impose up to 3x the underpayment if that is greater.

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.

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Send your details to Liquid Employment Lawyers

Liquid Employment Lawyers is a paid legal service and our referral partner, not free Fair Work advice. Tell them what has happened and a member of their team will call you back. For free general guidance, use our tools or call the Fair Work Ombudsman on 13 13 94.

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General information and estimates only — not legal, financial or tax advice. Always check your specific award, agreement or contract, or a qualified professional, before you rely on the result.

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