Since 1 January 2025, intentional underpayment of wages is a criminal offence under the new wage theft laws in Australia, with penalties of up to 10 years imprisonment for individuals. Civil penalties reach the greater of 3 times the underpayment amount or $1.565 million per contravention for individuals, and $7.825 million for corporations under the Fair Work Act 2009 (Cth), as amended by the Closing Loopholes Act. Directors and senior managers face personal criminal liability.
Many employers have never verified their Award classifications, annualised salary arrangements, or overtime calculations against current Award schedules. The Wage Compliance Audit from Brookvale HR Solutions is a structured diagnostic that identifies employer underpayment exposure before the Fair Work Ombudsman does, with Daniel Holbrook personally reviewing every employee classification and pay calculation across the organisation. The audit is delivered in two stages: a diagnostic that identifies risk, and a remediation stage if underpayment is confirmed.
The Closing Loopholes Act criminalised intentional wage underpayment from 1 January 2025. The distinction between intentional and inadvertent shortfall is assessed by the courts, not by the employer. Any business that has never reviewed its classifications and pay arrangements against current Award schedules may find it difficult to argue that an identified underpayment was inadvertent.
Up to 10 years imprisonment for individuals. Civil penalties reach the greater of 3 times the underpayment amount or $1.565 million per contravention for individuals; $7.825 million for corporations.
Directors who authorise or knowingly permit underpayment can be personally prosecuted. The company’s balance sheet does not absorb the criminal exposure; it attaches to the individuals who made the decisions.
An employee at the wrong Award level cascades into years of shortfall across overtime, penalty rates, leave loading, and superannuation. Inadvertent misclassification compounds quietly until a complaint or audit surfaces it.
A 15-point gap analysis covering contracts, policies, WHS obligations, and wage compliance. $1,500 fixed fee, fully credited toward follow-on work including the Wage Compliance Audit.
The diagnostic is a systematic review of the employer’s payroll compliance position. Daniel reviews every classification, every pay arrangement, and every entitlement calculation against the applicable Award and the Fair Work Act, including applicable modern awards and any enterprise agreement in place.
Systematic review of the employer’s payroll compliance position.
Only triggered if the diagnostic identifies actual underpayment.
Directors who authorise or knowingly permit underpayment can be personally prosecuted. The audit produces the evidence base that distinguishes inadvertent shortfall from intentional conduct. Where a business can demonstrate it has reviewed its classifications and pay arrangements against current Award schedules, identified any shortfall, and taken prompt action to remediate, the facts available to a prosecutor look materially different from a business that has never reviewed its payroll at all.
Pricing is based on workforce size and the complexity of the employer’s Award coverage, classifications, pay arrangements, and superannuation obligations. Daniel provides a fixed-fee quote after the scoping call so the employer knows the exact cost before any work commences. Stage 2 remediation is separately scoped and quoted, only triggered if underpayment is confirmed.
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Tool
Step 1 of 4
Daniel conducts a free scoping call to understand the business: workforce size, Awards that apply, pay arrangements, and any specific concerns. This call determines the audit scope and produces a fixed-fee quote.
The employer provides payroll records, employment contracts, Award schedules, and any relevant enterprise agreements. Daniel provides a clear checklist of what is needed to ensure payroll records and existing processes are sufficient for a thorough compliance review.
Daniel conducts a line-by-line review of every Award classification, pay arrangement, and entitlement calculation. The written report is delivered with risk ratings across all audit areas and prioritised recommendations. A debrief call follows to discuss the findings.
If underpayment is identified, Daniel provides a scope estimate for remediation before any work commences. Stage 2 includes quantification, employee communication, and ongoing compliance frameworks.
“ We recently worked with Brookvale HR Solutions to conduct a full HR audit, implement a new HR and safety policy suite, and resolve a difficult employee performance issue. Dan made the whole process straightforward, gave very practical advice, and ensured we were compliant at every step. We're now much clearer and more confident in how we manage our team, and we feel our HR and safety foundations are in a much stronger position. ”
If the audit reveals systemic documentation gaps beyond wages.
Contracts, policies, procedures, and compliance documentation built for your business.
For broader compliance issues beyond wages.
A 15-point gap analysis covering 15 areas of HR risk. Fee fully credited toward follow-on work.
If compliance extends to sexual harassment prevention.
A documented prevention framework covering all seven AHRC standards.
From $2,500 Stage 1. Stage 2 remediation separately scoped. No lock-in contracts. A direct conversation about the business’s payroll compliance position, and a structured path forward.
