High Income Threshold Increase

The Fair Work Commission has increased the high-income threshold for 2021 to $153,600 (up from $148,700 in 2020).

Earnings that contribute towards the high-income threshold include wages, fringe benefits and salary sacrifice arrangements, but not superannuation. Some other types of payments may be excluded from the calculation such as bonus or commission.

Employees who earn more than the threshold and are not covered by an award or agreement cannot file an unfair dismissal claim against the employer.

Employees who earn more than the threshold and are covered by an award or agreement may enter into an arrangement to guarantee annual earnings in exchange for waiving the provisions of the award. These award covered employees may still file for an unfair dismissal claim.

Maximum damages in such a claim is set to 50% of the high-income threshold.