What does the increase in the high income threshold mean for you?
There are two main changes which will be explained below:
- High Income Guarantee
The High Income Threshold will increase from the 1st of July 2015 from $133,000 to $136,700. Any employers who sidesteps Award Conditions by using
High Income Guarantees will need to check their agreed terms to ensure that they remain compliant and above the threshold. If guarantee levels fall below
the threshold, or lapse for another reason, minimum entitlements will revert to those in the Award (including, for example, overtime and penalty rates).
Moreover, if an employee who is not covered by any award agreement and whose annual rate of earnings exceeds the High Income Threshold is dismissed,
they will be unable to make a claim to the Fair Work Commission for unfair dismissal.
- Maximum Penalties for unfair dismissal
The maximum amount of compensation that can be awarded by the Fair Work Commission is capped at the lesser of six months’ pay or half the High Income
Threshold amount. This will increase from the previous $ 66,500 to $ 68,350 for a dismissal that occurs from the 1st of July 2015.