Wage theft has more than doubled in Australia in the past five years, according to a new analysis of data from the Fair Work Ombudsman.

Software company Reckon published the report, which also detailed the worst sectors for wage theft.

Overall, in the financial years from 2019-2020 to 2023-2024, more than 16,700 investigations into wage theft were completed, with 9401 businesses (56 per cent) found to be non-compliant.

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More than $1.76 billion was repaid to workers in that time, with penalties increasing sharply.

During the past five financial years, the public administration and safety sector recorded the highest rate of wage non-compliance in Australia, with 932.3 non-compliant businesses per 100,000.

This led to more than $270,000 being repaid to workers within the sector.

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The accommodation and food services industry ranked second, but surpassed the public administration and safety sector in both number of requests for assistance, or RFAs (11,369 to 1390) and number of non-compliant businesses (2553 to 163).

"Our research reveals that wage theft continues to be a significant issue across Australia, with over 16,700 investigations completed and more than 9400 businesses found non-compliant over the past five financial years," Reckon chief executive Sam Allert said.

"The scope of this issue is highlighted by the $1.76 billion that was repaid to workers, emphasising the far-reaching consequences for businesses that fail to comply."

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The other industries that landed in the top 10 worst wage theft offenders – judged by how many businesses per 100,000 Reckon found to be non-compliant – included administrative and support services (281.8); other services (221.2); retail trade (199.6); electricity, gas, water, and waste services (199.3); transport, postal, and warehousing (198.2); arts and recreation services (195.5); manufacturing (179.8); and mining (177.8).

Mining was at the top spot in terms of the average amount of money recovered per non-compliant business, at more than $4.5 million.

That was followed by the utilities service sector at more than $2.5 million.

The report also found wage theft levels differed state to state, with the Northern Territory the worst offender in relative terms, followed by Tasmania, Queensland, South Australia, the ACT, Victoria, New South Wales, and Western Australia.

The data also appeared to show most wage theft inquiries were initiated by employees rather than self-reported by employers – though an RFA is not a per se indicator of any discrepancy in remuneration.

"Businesses can protect themselves by regularly reviewing payroll systems, staying informed about industry-specific regulations, and promptly addressing any discrepancies," Allert said.

"By implementing robust compliance frameworks, investing in ongoing training, and utilising technology, businesses can not only avoid the costly consequences of non-compliance but also build a strong level of trust with their employees, ensuring a fairer and more sustainable work environment."

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