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There has been an increase to the high-income threshold under the Fair Work Act from 1 July 2013 to $129,300 (up from $123,300).

Employees not covered by an award or statutory workplace agreement do not have access to the Federal unfair dismissal jurisdiction if their annual rate of earnings exceeds the high income threshold.

The change also:

  • means that the maximum compensation that might be awarded in an unfair dismissal claim has increased to $64,650 (half the threshold and up from $61,650); and
  • may affect the application of awards and award entitlements to high income employees whose industrial arrangements incorporate a guarantee of annual earnings at a level intended to exceed the threshold.