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ARTICLE · 15 JULY 2023

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Increase in high-income threshold for employees

Given the changes in the high-income threshold, employers are encouraged to review their employee contracts.

AustraliaEmployment and HR

Unfair Dismissal

Employers should be aware of certain changes regarding the unfair dismissal provisions. For the unfair dismissal provisions to apply, assuming the employee has completed the minimum period of employment, the employee must:

  • Earn less than the high-income threshold; or
  • Be covered by a modern award or enterprise agreement.

Since the start of the financial year at 1 July 2023, the High-income threshold has been increased from $162,000 to $167,500. As such, for the provisions to apply, the employee must either be covered by a modern award or enterprise agreement or earn less than $167,500 per annum.

High Income Guarantees

Further, employers should also note the application of the increase to high income guarantees and making employees award free. A high income guarantee is essentially an undertaking made by the employer to the award-covered employee that they will be paid more than the high income threshold for a period of 12 months.

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