High income threshold
The high income threshold will increase to $142,000 per annum, effective 1 July 2017. The previous threshold was $138,900 per annum until 30 June 2016.
The high income threshold is the amount by which a category of non-award employee is excluded from the unfair dismissal provisions of the Fair Work Act, and in relation to the guarantee of annual earnings relating to modern awards.
The increase in the threshold affects a number of different provisions under the Fair Work Act, including:
- an award/agreement-free employee’s eligibility to claim unfair dismissal
- the maximum amount of compensation of six months' earnings that the Fair Work Commission can order an employer to pay to an employee deemed to have been unfairly dismissed, and
- the level an employer can guarantee an employee’s earnings which renders the provisions of the applicable modern award no longer applicable to the employee.