Anonymous tip-offs to the Fair Work Ombudsman hit a record high last year, and the regulator’s back-payment recoveries for underpaid workers climbed with them.
The FWO received 31,596 anonymous reports in the 2025–26 financial year, according to its newly published annual report, up 23 per cent on the 25,608 reports received the year before. Recoveries for underpaid workers rose 27 per cent over the same period.
More than 181,000 workers were back-paid a combined $453 million in underpaid wages during the year, an increase of roughly $95 million on the previous year. Over the last six financial years, total back-payments to Australian workers now sit at close to $2.5 billion.
Fair Work Ombudsman Anna Booth welcomed the rise in anonymous reporting. “Anonymous reports help us identify emerging issues, detect patterns, and target education, engagement and compliance activities where they’re needed most,” she says.
Where the money’s coming from
Large corporates accounted for $217.3 million of this year’s total back-payments, covering more than 110,000 workers. The regulator also finalised 15 Enforceable Undertakings, where employers commit to improved practices and governance alongside full back-payment, recovering $106.6 million in wages and entitlements, including superannuation and interest.
A handful of specific sectors remain under close watch. In fast food, restaurants and cafes, one of the FWO’s priority areas, the regulator recovered more than $5.6 million for 3,538 workers and launched 16 litigations, around 27 per cent of all litigations commenced in the year. In building and construction, recoveries exceeded $6.8 million for 932 workers, with nearly 3,000 matters completed and 14 litigations started. Back-payments to construction workers have topped $23.2 million since November 2022.
Aged care also featured prominently. Two Enforceable Undertakings signed with major providers, Southern Cross Care (NSW & ACT) and Southern Cross Care (WA), delivered more than $16 million in recoveries for underpayments stretching back years.
Penalties and enforcement
Across all sectors, the FWO commenced 60 litigations in 2025–26 and secured $2.3 million in penalties. Notable cases included a $213,120 penalty against the University of New South Wales over record-keeping and payslip failures that hampered an FWO investigation into underpayments (UNSW later signed an Enforceable Undertaking as well), and $171,500 in penalties against the CFMEU and four of its Victorian officials.
The regulator also issued 1,392 Compliance Notices, recovering more than $33 million for over 17,000 workers, and handed out 791 Infringement Notices across sectors for payslip and record-keeping failures, totalling $831,891 in fines.
What it means for small business owners
Booth was explicit that small businesses remain a priority, both as employers who need support getting things right, and as a group the regulator wants to hear from if something’s wrong. “As ever, we will prioritise helping small business employers and employees, and vulnerable workers including visa holders. If you’ve got concerns about workplace rights please continue to contact the FWO,” she says.
Free advice is available through the FWO’s Employer Advisory Service, and small businesses can also find resources through the Small Business Showcase. General advice and assistance is available at fairwork.gov.au, or by phone on the Fair Work Infoline (13 13 94), with a free interpreter service available on 13 14 50.
View the 2025-26 Office of the Fair Work Ombudsman Annual Report.