27/08/2026
Would you pay an employee an extra $3,000 a year if it significantly reduced a future industrial relations risk?
Most employers would say yes without blinking because smart employers do not just ask “what are we paying?” They ask “are we paying strategically?” and this is exactly where the High Income Threshold becomes a lever, not just a number.
From 1 July, the High Income Threshold rose to $190,100 a year. When an employee earns above it and is not covered by a modern award or enterprise agreement, they usually cannot bring an unfair dismissal claim through the Fair Work Commission. That is a real reduction in your exposure.
Now this is not a green light to let people go without cause or process. A high income does not sit above needing solid foundations, nor does it remove your obligation to be an ethical employer. It needs to be backed by clear contracts, sound people management, and decisions that are never unlawful or made for a prohibited reason.
Paid strategically, the threshold protects you. Paid without the rest, it does very little.
If you want a second set of eyes on where your contracts and your exposure actually sit, we would love to talk.