Budget Money

On Thursday 23 June 2016, the Fair Work Commission announced it would increase filing fees, high income thresholds and compensation caps for unfair dismissal applications.

For unfair dismissal claims occurring on or after the 1 July 2016, the high income threshold will be increased to $138,900 and the compensation limit will be increased to $69,450. This is a $2,200 increase from the previous high income threshold of $136,700 and a $1100 increase to the compensation limit from $68,350.

The high income threshold refers to the maximum income an employee who is not covered under an award or enterprise agreement can earn before they are excluded from making an unfair dismissal claim against their organisation.

Under Section 392(5b) of the Fair Work Act, the compensation cap for unfair dismissals is calculated to be half the amount of the high income threshold.

Additionally, as of the 1 July 2016, the filing fee required when making a dismissal, general protection and/or anti-bullying application will increase by $1 to $69.60. These applications are made under Sections 365, 372, 394, 773 and 789FC of the Fair Work Act.

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