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ARTICLE · 26 JULY 2021

Unfair dismissal - increase in high income threshold

Employees earning >$158,500 are ineligible to bring an unfair dismissal claim unless they can show that a MA or EA applies to them.

AustraliaEmployment and HR

Given that we have now ticked over into a new financial year, we thought it worthwhile making you aware of the new high income threshold for unfair dismissal purposes. It has increased from $153,600 to $158,500 in respect of dismissals taking place on or after 1 July 2021. Employees earning above this amount are ineligible to bring an unfair dismissal claim unless they can show that a modern award or enterprise agreement applies to them (which is not that common in respect of employees on that level of remuneration).

In terms of what is taken into account in assessing whether an employee is earning above the high income threshold of $158,500 the following are not included:

  • Compulsory superannuation contributions.

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