Annual wage theft toll hits $850 million as criminalisation bill looms

Wage theft is costing Australian workers $850 million a year, demonstrating an “ingrained culture” of deliberate underpayment and the need for criminalisation at the federal level, according to a damning new report from the McKell Institute.

A fresh analysis of Fair Work Ombudsman audits stretching back to 2009 shows more than a quarter of audited businesses failed to observe the monetary obligations set out by industry awards or enterprise agreements, according to the think tank.

Its calculations show nearly 27,000 businesses were found to have underpaid approximately 1.3 million Australian workers over that time frame.

The real level of wage underpayment is likely higher, McKell Institute CEO Ed Cavanough said, as the analysis did not cover the underpayment of penalty rates, or circumstances where payment under a different award would have been more appropriate.