Jul 012015
 

The Unfair Dismissal High Income Threshold is $136,700.00 and the maximum amount of compensation that can be awarded is $68,350.00.

From 1 July 2015, the High Income Threshold increased from $133,000.00 to $136,700.00.

Employees earning more than $136,700.00 cannot make unfair dismissal claims unless they are covered by a modern award or an enterprise agreement.

The maximum compensation for unfair dismissal applications is the lesser of 6 months pay or the equivalent of half the Unfair Dismissal High Income Threshold, $68,350.00.

The following factors are considered when performing the High Income Threshold calculation:

  • Wages;
  • Superannuation;
  • Money paid on behalf of the employee (e.g. salary sacrifice); and
  • The agreed monetary value of non-monetary benefits (e.g. company car or mobile phone). 

The High Income Threshold calculation does not consider:

  •  Payments which cannot be determined in advance (e.g. commissions, incentive-based payments and bonuses);
  •  Overtime (unless the overtime is guaranteed); and
  •  Reimbursements.

Redundancy – Tax Free Amount

From 1 July 2015, the Tax Free Amount for genuine redundancy payments increased from $9,514.00 to $9,780.00 plus an increase from $4,758.00 to $4,891.00 per completed year of service.

Employment Termination Payments (ETP)

The cap for the lower tax rate on ETPs increased from $185,000.00 to $195,000.00 on 1 July 2015.

Superannuation

In 2014-2015, the Superannuation Guarantee Contributions Rate was frozen at 9.5% and will remain at this rate until the 2020-2021 financial year. The maximum quarterly contribution base increased from $49,430.00 to $50,810.00; and the maximum annual contribution base increased from $197,720.00 to $203,240.00.

The maximum contribution bases are the maximum salary amounts for which  an employer must contribute superannuation guarantee amounts, unless the employer has agreed to pay superannuation contributions on the total salary paid.

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