What is the high income threshold?
The high income threshold is an earnings cap set by the Fair Work Act that limits who can make an unfair dismissal claim.
The high income threshold is a figure set under the Fair Work Act 2009 that affects unfair dismissal rights. An employee who is not covered by a Modern Award or enterprise agreement and who earns above the threshold generally cannot make an unfair dismissal claim.
The threshold also caps the amount of compensation the Fair Work Commission can award in unfair dismissal cases and is used to work out whether a guarantee of annual earnings can apply. It is indexed on 1 July each year, so check the current figure with the Fair Work Commission.
Key facts
- •Set under the Fair Work Act 2009 and applied by the Fair Work Commission
- •Award-free and agreement-free employees earning above the threshold generally cannot claim unfair dismissal
- •It also caps the compensation payable in unfair dismissal cases
- •Indexed on 1 July each year — check the current figure with the Fair Work Commission
- •Employees covered by a Modern Award or enterprise agreement can still claim unfair dismissal regardless of earnings
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Unfair Dismissal CheckerFrequently asked questions
Does earning above the high income threshold mean I have no rights if I'm sacked?
No. Even above the threshold you may still be able to make a general protections claim or pursue a breach of contract claim. The threshold mainly affects access to the unfair dismissal jurisdiction for award-free employees.
What counts towards the high income threshold?
It is based on annual earnings such as wages and some agreed money amounts, but generally excludes things like superannuation contributions and reimbursements. The Fair Work Commission sets out exactly what is included.
FairWork Mate is an independent commercial service. We are not affiliated with, endorsed by, or associated with the Fair Work Ombudsman, the Fair Work Commission, or any Australian Government agency. Content is general information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.