Wage Audits in Australia: Why Every Business Should Act Now
Wage Audits in Australia: Why Every Business Should Act Now
If you run a business in Australia, staying on top of wage compliance is no longer optional — it’s essential. With the Fair Work Ombudsman cracking down on wage underpayments, and new legislation on the horizon, more employers are finding themselves at risk of serious financial and reputational damage. A wage audit is your best defence.
What is a Wage Audit?
A wage audit is a thorough review of your payroll, time and attendance records, and employment agreements to ensure your employees are being paid correctly under the relevant modern awards, enterprise agreements (EBAs), or the Fair Work Act 2009. It uncovers common compliance issues like:
- Underpayments due to misclassification
- Incorrect application of penalty rates and allowances
- Outdated EBAs or incorrect annualised salary arrangements
- Missing records or manual payroll errors
Whether you're a small business with five employees or a national employer with hundreds, the risk of inadvertent underpayment is real.
Why You Can’t Afford to Skip a Wage Audit
Failing to conduct regular wage audits can expose your business to:
- Fines and penalties from the Fair Work Ombudsman
- Backpay obligations, which can stretch back years
- Brand damage from public wage theft findings
- Employee claims and legal disputes
In recent years, even large, well-known companies have made headlines for breaching workplace laws — often unintentionally. The truth is, Australia’s award system is complex, and even small oversights can add up to large liabilities.
Who Should Get a Wage Audit?
You should strongly consider a wage audit if:
- You haven’t reviewed your payroll in the last 12 months
- You employ staff under modern awards or EBAs
- You use manual timesheets or outdated payroll software
- You’ve grown quickly or changed workforce structures
- You want to prepare for a Fair Work audit or industry certification
The Benefits of a Proactive Underpayment Review
Instead of waiting for a problem to surface, a wage audit helps you identify and correct issues early. The benefits include:
- Ensuring payroll compliance with Fair Work regulations
- Boosting employee trust and transparency
- Reducing the risk of backpay or legal claims
- Protecting your directors from liability under new wage theft laws
- Supporting your HR and finance teams with clear, defensible processes
How Subi Makes Wage Audits Simple
Subi Compliance is a purpose-built platform designed to make wage audits fast, accurate, and legally defensible. Whether you're a law firm auditing for clients or a business owner needing peace of mind, Subi streamlines the entire process.
Our platform:
- Integrates with leading payroll and time-tracking systems
- Standardises and cleans your data for expert review
- Connects you to certified employment lawyers for legal advice
- Creates a clear, auditable trail of every step in the review process
The result? You save time, reduce human error, and get a clear picture of where your risks are — all in one secure, easy-to-use dashboard.
What’s Next?
If you’re unsure whether your business is meeting its wage obligations, now is the time to act. With more legislation being introduced around wage theft and payroll accuracy, conducting a wage audit is no longer a “nice to have” — it’s a business necessity.
To learn more about how Subi can support your payroll compliance needs, or to see the platform in action, we invite you to book a demo with our team today.