From 1 July 2015, the high income threshold and maximum superannuation contributions base will increase.

High Income Threshold

On 1 July 2015, the high income threshold will increase from $133,000 to $136,700.

The high income threshold is important for the following reasons:

  1. Employees that are not employed pursuant to a modern award or enterprise agreement and who receive annual earnings above the high income threshold are unable to make a claim for unfair dismissal.
  2. Employees that are employed pursuant to a modern award, do not receive modern award entitlements and have annual earnings above the high threshold amount can make an unfair dismissal claim.
  3. The maximum amount of compensation payable for a successful unfair dismissal claim is capped at the lower of, half the amount of the dismissed employee's wage or half the amount of the high income threshold, which is $68,350 after 1 July 2015.

In determining whether an employee earns more than the high income threshold what is included is an employee's wage and other 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 and compulsory superannuation contributions.

Superannuation Contributions Base

From 1 July 2015, the maximum superannuation contribution which an employer is required to make on behalf of an employee increases to $50,810 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 contribution base, per quarter.  By agreement, an employer may contribute an amount in excess of the maximum superannuation contributions base to an employee's superannuation fund.