Every year on 1 July, a handful of numbers buried in the Fair Work Act 2009 (Cth) quietly reset. Most Queenslanders never notice. But if you’ve recently lost your job, you’re recovering from a workplace injury, or you’re simply trying to understand your rights at work, these figures can directly affect what you’re entitled to. This year’s changes touch the minimum wage, the unfair dismissal compensation cap, and the threshold that decides who can bring an unfair dismissal claim at all. Here’s what actually changed, and why it matters.
What Changed on 1 July 2026?
Each year, the Fair Work Commission indexes several key figures under the Fair Work Act. According to recent legal industry commentary, the changes taking effect from 1 July 2026 include an increase to the national minimum wage, an increase to the “high income threshold,” and a corresponding increase to the maximum compensation the Fair Work Commission can award in a successful unfair dismissal claim.
The high income threshold has increased from $183,100 to $190,100 per annum from 1 July 2026.
The unfair dismissal compensation cap (half the high income threshold) has increased from $91,550 to $95,050 from 1 July 2026.
The national minimum wage has increased by around 6%, to approximately $26.44 per hour (roughly $1,004.90 for a 38-hour week) from 1 July 2026, with award minimum wages rising by a separate percentage.
The filing fee for unfair dismissal, general protections and anti-bullying applications has increased to $92.70 from 1 July 2026.
For most private-sector workers on the Gold Coast, in Brisbane, Logan and Ipswich, the Fair Work Act is the relevant federal framework. Queensland also has its own state industrial relations system covering state and local government employees, where wage rates are set separately through the Queensland Industrial Relations Commission (QIRC). If you work for a Queensland Government department, council, or another state-system employer, different rates and processes may apply, and it’s worth checking which system covers you.
Why the High Income Threshold Matters If You’ve Been Dismissed
The high income threshold decides who can even bring an unfair dismissal claim in the first place. If you’re not covered by a modern award or an enterprise agreement, your annual earnings generally need to sit below this threshold for the Fair Work Commission to have jurisdiction to hear your unfair dismissal claim.
This catches people out more often than you’d expect. Someone on an individual contract, earning a salary just above the threshold, may believe they have no options at all after being dismissed — when in reality, award coverage, superannuation, bonuses, and other benefits can all affect how “earnings” are calculated for this purpose. It’s a technical assessment, and getting it wrong in either direction can mean missing out on a legitimate claim, or wasting time and a filing fee pursuing one that was never going to proceed.
The same threshold also affects the maximum amount of compensation available. Even where an unfair dismissal claim succeeds, the Fair Work Commission’s compensation order is capped at whichever is lower: your remuneration in the 26 weeks before dismissal, or half the high income threshold. Reinstatement, where ordered, isn’t subject to this cap — but the dollar compensation is.
The Minimum Wage Rise and Recovering or Injured Workers
The annual minimum wage and award increase matters well beyond people currently in a dispute. For Queenslanders recovering from a workplace injury or car accident and easing back into modified or part-time duties, award rates directly affect weekly earnings calculations used in return-to-work plans, and can factor into how ongoing workers’ compensation entitlements are assessed. A wage increase during a claim can also affect calculations if a common law claim considers future economic loss, since courts generally look at what a worker could reasonably have expected to earn going forward.
If you’re on a graduated return-to-work program after a workplace injury, it’s worth checking that your modified hours are being paid at the correct, current award rate — not last year’s figure.
Unfair Dismissal: The Clock Is Still Ticking
None of these indexed figures change one of the most important rules in employment law: the strict time limit to lodge an unfair dismissal application.
An unfair dismissal application must generally be lodged with the Fair Work Commission within 21 days of the dismissal taking effect, under section 394(2) of the Fair Work Act 2009 (Cth).
Twenty-one days is not a long time, particularly when someone is also dealing with the shock of losing their job, sorting out final pay, and figuring out what comes next. The Fair Work Commission can extend this time limit in exceptional circumstances, but there’s no guarantee an extension will be granted, and relying on one is a risky strategy. If you think you may have been unfairly dismissed, treating that 21-day window as non-negotiable — and getting advice immediately — is the safest approach.
What This Means If You’re Currently Navigating a Dismissal or Injury
If you’ve recently been dismissed, or you’re facing dismissal while dealing with a workplace injury, illness, or a workers’ compensation claim, these annual changes are a timely reminder to check a few things:
- Whether your earnings sit above or below the current high income threshold, and whether an award or enterprise agreement might still cover you regardless.
- Whether your dismissal happened close to 1 July, since the threshold and compensation cap that apply depend on the date the dismissal took effect, not when you lodge your claim.
- Whether your return-to-work or modified duties pay reflects the new minimum wage or award rates.
- Whether dismissal followed shortly after you lodged, or raised, a workers’ compensation claim — timing like this can be relevant to broader protections against adverse action under the Fair Work Act.
Practical Takeaways
- Note the date your dismissal took effect — it determines which year’s threshold and compensation cap apply to your situation.
- Don’t assume you’re excluded from making an unfair dismissal claim just because you’re a salaried employee — award coverage can still apply.
- If you think you’ve been unfairly dismissed, treat the 21-day filing window as immovable and get advice straight away.
- If you’re on modified duties after a workplace injury, check your pay reflects the current minimum wage or award rate.
- Keep records of your dismissal, your pay, and any communications around the time you raised a workplace injury or compensation claim.
How GC Law Can Help
Annual indexation changes like these can feel like fine print, but they can make a real difference to what you’re entitled to claim, and whether you’re even eligible to claim at all. GC Law is a Queensland Law Society Accredited Specialist in Personal Injury Law, and our employment law team regularly helps Queenslanders work through unfair dismissal, workplace bullying, and termination issues that overlap with a workers’ compensation claim. We offer a Free Claim Review, act on a No Win, No Fee basis, and provide complete confidentiality. As a locally owned Gold Coast firm with offices in Brisbane, Loganholme and Ipswich, we also offer home visits, including in regional Queensland, for clients who need us to come to them.
Make the Call Today
If you’ve been dismissed, or you’re worried your job is at risk while you’re recovering from an injury or illness, don’t wait for the 21-day window to close. Speak with our employment law team about your options. Call GC Law on 1300 302 318 for a Free Claim Review, or visit gclaw.com.au to get started. You can also reach us through our contact page.
