High income threshold

The high income threshold is a benchmark used to determine whether certain workplace protections and award conditions apply to an employee. An employee who earns more than this threshold and is not covered by an award or enterprise agreement cannot make an unfair dismissal claim, and an award-covered employee is excluded from their award only if their employer has given them a written guarantee of annual earnings above the threshold. The threshold amount is updated each year to reflect changes in the economy.

The high income threshold for 2026–27

Rates current from 1 July 2026.

From 1 July 2026 the high income threshold is $190,100, up from $183,100, and the maximum unfair dismissal compensation is $95,050 or 26 weeks' pay, whichever is less. Earnings for the test include wages, salary-sacrificed amounts and agreed non-monetary benefits, but not payments that cannot be worked out in advance, such as commissions and bonuses. For example, an award-free sales director on a $200,000 salary cannot make an unfair dismissal claim, but an award-covered employee on the same salary can, unless they have a guarantee of annual earnings.

Read our guide to unfair dismissal.