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.

Anthony Wood
Anthony Wood
Partner, Melbourne
+61 3 9288 1544
Drew Pearson
Drew Pearson
Partner, Sydney
+61 2 9225 5492
Kirsty Faichen
Kirsty Faichen
Partner, Brisbane
+61 7 3258 6492
Anna Creegan
Anna Creegan
Partner, Perth
+61 8 9211 7135