High Income Threshold increase from 1 July 2022
From 1 July 2022, the high income threshold increased to $162,000 per annum.
Read more...From 1 July 2025, the high income threshold for employees and independent contractors will increase to $183,100 per annum.
Employee high income threshold
The increase to the employee high income threshold means that award-free and agreement-free employees earning up to $183,100 per annum will now be protected from unfair dismissal and will be eligible to bring an unfair dismissal claim under the Fair Work Act 2009 (Cth) (FW Act) where the dismissal takes place after 1 July 2025.
The increase to the threshold also impacts the amount of compensation that the Fair Work Commission (FWC) can award in unfair dismissal matters. The maximum compensation that can be ordered by the FWC will now be $91,550.
Contractor high income threshold
The increase to the contractor high income threshold means that from 1 July 2025, independent contractors earning up to $183,100 per annum will be eligible to seek a remedy under the FW Act for unfair deactivation or unfair termination and in disputes concerning unfair contract terms.
Independent contractors earning more than $183,100 per annum can ‘opt-out’ of the ‘whole of the relationship test’ to determine whether they are an independent contractor or employee.
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