The high income threshold is an annual earnings amount affecting eligibility for unfair dismissal protection for non-award employees.
Legislation: Fair Work Act 2009 s382 | Category: Employment Law
What is High Income Threshold?
The high income threshold is an earnings amount set annually by the Fair Work Act that affects eligibility for certain protections. It is most commonly relevant to unfair dismissal eligibility, where employees earning above the threshold and not covered by an award or enterprise agreement cannot make an unfair dismissal claim.
The threshold is indexed annually on 1 July. For the 2024-25 year, the high income threshold is $175,000 per annum. The calculation includes wages, agreed monetary allowances, and agreed bonuses, but excludes reimbursements, superannuation, and discretionary payments.
Key Compliance Points for Employers
- The threshold applies to annual earnings at the time of dismissal, not what was actually paid
- Employees covered by an award or enterprise agreement can claim unfair dismissal regardless of earnings
- High income employees remain entitled to NES entitlements and general protections
- A guarantee of annual earnings can be used to confirm award-free status for high earners
- The threshold does not affect other claims such as general protections or discrimination
Frequently Asked Questions
What is High Income Threshold?
The high income threshold is an annual earnings amount affecting eligibility for unfair dismissal protection for non-award employees.
Why is High Income Threshold important for employers?
Understanding high income threshold helps employers comply with Australian employment law, avoid penalties, and maintain fair workplace practices.
