Introduction
The contractor high income threshold limits who can apply to us (is eligible) for an unfair deactivation, unfair termination or unfair contract term remedy.
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The contractor high income threshold is set by the Fair Work Regulations.
The contractor high income threshold
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The contractor high income threshold for the year starting 1 July 2024 is $175,000.
This figure is adjusted annually on 1 July.
The contractor high income threshold should not be confused with the high income threshold which applies to employees only. Find out more about the difference between contractors and employees.
If a person earns above the contractor high income threshold, they can ‘opt out’ of the operation of section 15AA of the Fair Work Act 2009 (which is about whether a person is an employee). The Fair Work Ombudsman’s website contains more information about opting out.
Unfair deactivation and unfair termination remedies
A regulated worker’s annual earnings must be less than the contractor high income threshold to be able (eligible) to apply for an unfair deactivation or unfair termination remedy.
Find out more about Unfair deactivation or termination for regulated workers.
Unfair contract term remedies
The annual earnings of a party to a services contract must be less than the contractor high income threshold (in the year the application is made) to be able (eligible) to apply to us for an unfair contract term remedy.
Find out more about Independent contractor disputes about unfair contract terms.
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We will publish more information about the contractor high income threshold and how to apply it as it becomes available.