From 1 July 2019, the high income threshold and maximum superannuation contributions base will increase.

High Income Threshold

On 1 July 2019, the high income threshold will increase from $145,400 to $148,700.

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 receive annual earnings above 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. $74,350 if the dismissal occurs after 1 July 2019).

In determining whether an employee earns more than the high income threshold, what is included is the employee's wage, amounts applied or dealt with as salary sacrifice amounts and the value of non-monetary benefits received by the employee. What is not included are payments which are not set in advance such as commissions, bonuses and overtime, reimbursements and compulsory superannuation contributions.

Superannuation Contributions Base

From 1 July 2019, the maximum superannuation contributions base will increase to $55,270 per quarter. An employer is required to contribute 9.5% of an employee's ordinary time earnings to a superannuation fund nominated by the employee but only up to the maximum superannuation contributions base.