ARTICLE · 23 JULY 2025

Major employment law changes – wage theft, penalties & superannuation

McCarthy Durie Lawyers

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From 2025, wage theft becomes a crime, penalties rise, super increases to 12% & payday super starts July 2026—employers must act.

AustraliaEmployment and HR

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Effective Dates:

Wage Theft & Civil Penalties: 1 January 2025
Superannuation Changes: 1 July 2025 and 1 July 2026

1. Criminalisation of Wage Theft

From 1 January 2025, intentional wage theft is a criminal offence under the Fair Work Act 2009 (Cth).

An employer commits a criminal offence if they intentionally underpay employees amounts owed under the Fair Work Act, a Fair Work instrument, or a transitional instrument.

Maximum penalties include:

Companies: The greater of $8.25 million or three times the underpaid amount
Individuals: Up to 10 years' imprisonment and/or the greater of $1.65 million or three times the underpayment

2. Increased Civil Penalties for Underpayments3>

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