From 1 July 2020, the high income threshold will be increased to $153,600. This amount is significant for 3 reasons:
- Unfair dismissal eligibility: Employees may have access to unfair dismissal if their annual rate of earnings is less than the high income threshold.
- Unfair dismissal compensation cap: Half the amount of the high income threshold represents the cap on the amount of compensation available in unfair dismissal proceedings ($76,800 from 1 July 2020).
- Guarantee of annual earnings: Employers can exclude award conditions by providing a guarantee of annual earnings to award-covered employees who have an annual rate of earnings which exceeds the high income threshold.
Also note: From 1 July 2020, the national minimum wage is $753.80 per week (or $19.84 per hour) following the 2020 Annual Wage Review decision (on 19 June 2020). The national minimum wage for casual employees will be $24.80 per hour (based on a 25% casual loading).*
*These rates arise from the Fair Work Commission’s Annual Wage Review decision dated 19 June 2020.
If you have any further questions, please get in touch.