Wage theft costs Australian workers $850 million a year, report says

Wage theft is costing Australian workers nearly $850 million a year, according to a new report from the McKell Institute.

The report analysed Fair Work Ombudsman audits, which found 27,000 businesses had underpaid approximately 1.3 million workers since 2009.

Steph, a personal trainer from Melbourne, was one of those underpaid workers over her four-year career.

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Steph told 9News that she was "frustrated and disappointed".

"I love what I do, and I want to remain in the industry. The whole time I have been a coach, I haven't been educated on my rights and entitlements," she said.

"I went to look at what my penalty rates were and when I was looking, I came across the overtime clauses and I realised how underpaid I was.

"Over the years, between the first wage theft incident, it hasn't gotten any better."

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The report found New South Wales accounted for nearly one-third of lost wages at $306 million per year.

Meanwhile, Victorians were underpaid by $221 million, and Queenslanders $163 million.

"All Australian workers need wage theft to be criminalised because it is theft pure and simple," McKell Institute executive director Rebecca Thistleton said.

"There is every chance that you are not either being paid for all of the hours that are being worked or you are not getting all of the entitlements that you should be receiving."

Hospitality staff and fruit pickers are often seen as vulnerable workers, but sub-contractors and personal trainers can also be caught up.

The Fair Work Ombudsman generally found employer non-compliance is not malicious but instead due to a lack of understanding.

But those in the industry say there is no excuse and that more needs to be done.

"If you go and steal a car, that's a crime so why isn't stealing people's wages a crime too?" Thistleton said.