The Unfair Dismissal high income threshold is $133,000 and the compensation cap is $66,500.
From 1 July 2014 the High Income Threshold increased from $129,300 to $133,000.
Employees earning more than $133,000 cannot make unfair dismissal claims unless they are covered by a modern award or enterprise agreement.
The maximum compensation for unfair dismissal applications is the lesser of 6 months pay and $66,500.
The High Income Threshold calculation includes the following when calculating income:
-
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).
-
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 2014, the Tax Free Amount for genuine redundancy payments increased from $9,246 to $9,514 plus an increase from $4,624 to $4,758 per completed year of service.
Employment Termination Payments (ETP)
The cap for the lower tax rate on ETPs increased from $180,000 to $185,000 on 1 July 2014.
Superannuation
From 1 July 2014, the Superannuation Guarantee Contributions Rate increased from 9.25% to to 9.5%: the maximum quarterly contribution base increased from $48,040 to $49,430; and the maximum yearly contribution base increased from $192,160 to $197,720.
The maximum contribution bases are the maximum salary amount that an employer must contribute, unless the employer has agreed to pay superannuation contribution on the total salary paid.
END UPDATE