On 1 July 2024, increases to the high income threshold, the superannuation contribution rate, and the maximum superannuation contribution base took effect.
High Income Threshold
On 1 July 2024, the high income threshold increased from $167,500 to $175,000.
The high income threshold is important for a number of reasons, including the following:
- Employees who are not covered by a modern award or subject to an enterprise agreement, and who earn more than the high income threshold, are unable to make an unfair dismissal claim.
- The maximum amount of compensation payable for a successful unfair dismissal claim is capped at the lower of:
- the amount of remuneration received by the employee (or the amount the employee was entitled to receive, whichever is higher) in the 26 weeks before the dismissal; or
- half the amount of the high income threshold immediately before the dismissal (i.e., $87,500 if the dismissal occurs on or after 1 July 2024).
In calculating whether an employee earns more than the high income threshold, what is included is the employee’s wages, amounts applied or dealt with in any way on the employee’s behalf or as the employee directs (i.e., salary sacrifice amounts) and the value of non-monetary benefits received by the employee. What is not included are payments which cannot be determined in advance (i.e., commissions, bonuses, and overtime), reimbursements, and compulsory superannuation contributions.
Superannuation Contributions
On 1 July 2024, the maximum superannuation contribution base increased to $65,070 per quarter and the statutory superannuation contribution rate increased from 11% to 11.5%. This rate will increase again on 1 July 2025 to 12%, where it is scheduled to stay.
If you require any assistance with employment law matters, contact Addisons’ employment law team.