An inquiry and report into the extent to which the wage theft framework under the Fair Work Act 2009 has led to a decrease in the incidence of wage theft in Australia.

The term 'wage theft' is not a defined concept in the Fair Work Act. The term 'wage theft' is often used to refer to both deliberate and unintentional forms of underpayment, although not all commentators agree that 'wage theft' should be used to refer to unintentional underpayment.

Report structure

• Chapter One: provides an overview of the criminal wage underpayment regulatory system
• Chapter Two: outlines key issues raised in evidence
• Chapter Three: contains the committee's view on issues raised and recommendations.

Key findings

• Some evidence emphasised that particular cohorts may be disproportionately affected by wage underpayment, including: women, young workers, international students and migrant workers.
• The criminal offence introduced by subsection 327A(1) has been in force since January 2025. Experts, professionals and unions are unable to agree on whether it has effectively reduced the rate of wage theft.
• The committee is not convinced that the criminal offence is having the impact that it was anticipated to have on a small number of businesses who deliberately and persistently underpay their employees. 
• There are concerns that the legislation does not appropriately distinguish between intentional versus unintentional conduct.
• The complexity of the industrial relations system is a significant factor contributing to wage underpayment (and overpayment).

Recommendations for the Australian Government

1. Make modern awards clearer and easier to apply through clearer classification structures, plain-language drafting and more accessible guidance on coverage.
2. Provide further clarity on the interaction of the criminal wage underpayment offence with the Criminal Code.
3. As part of the targeted early review of the wage underpayment offence recommended by the review of the Closing Loopholes Acts, assess whether the balance of the Fair Work Ombudsman's resourcing across its criminal and civil enforcement functions is delivering the fastest possible repayment for underpaid workers and the most effective response to employers who deliberately underpay.