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New Wage Theft Laws: What Employers Must Do Now!

Updated: Mar 29

New Wage theft laws became a criminal offence in Australia on 1 January 2025.


Employers who intentionally underpay workers could face hefty fines and even jail time! This is a nationwide crackdown, and it applies to all businesses, big or small. If you manage payroll, now is the time to take action!

Business-Books-n-BAS-wage-theft laws-2025

Who Needs to Pay Attention?

If you employ anyone under the Fair Work Act 2009, these laws apply to you.

That means:

  • Small businesses

  • Franchises

  • Large corporations

  • Directors, finance managers, & payroll officers


What You Need to Do Right Now

  • Check Your Payroll: Do a full payroll audit. Are you paying the correct award rates, penalty rates, and entitlements?

  • Confirm Every Employee’s Award & Classification: Ensure each worker has a documented award level and classification under Fair Work guidelines. This prevents underpayment due to misclassification.

  • Stay on Top of Award Changes: Wage rates and entitlements change often—make sure you’re always using the latest rates.

  • Train Your Payroll & HR Teams: Educate your staff about the new laws, correct pay rates, and the risks of non-compliance.

  • Keep Impeccable Records: Maintain detailed and accurate records of hours worked, pay rates, timesheets, and payslips. If you don’t have records, authorities may assume you’re hiding something.

  • Get Expert Help: Unsure if your payroll is compliant? Business Books, BAS, can help you avoid costly mistakes.


How Small Businesses Can Stay Protected

If you're a small business, with less than 15 employees, the good news is that unintentional underpayments won’t be considered criminal if you comply with the Voluntary Small Business Wage Compliance Code. The code is a set of guidelines a small business can follow to demonstrate their commitment to fair work practices.


Following the Code can help you:

  1. Meet wage compliance requirements

  2. Avoid criminal prosecution for genuine payroll mistakes

  3. Ensure employees are paid correctly and fairly


The Cost of Getting It Wrong

If found guilty of wage theft, businesses face:

  1. Fines in the millions

  2. Criminal charges

  3. Loss of trust from employees & customers


New Wage Theft Laws: Protect Your Business Now!

Wage compliance goes beyond legal obligations; it encompasses creating a fair, ethical, and sustainable business. Act before it’s too late.


Need a second opinion on your payroll? 


Contact Business Books n BAS now, to ensure you're compliant and risk-free.




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