See Fair Work Act 2009 s.392(5) and (6)
Orders for compensation will be reduced if the amount exceeds the compensation cap. The compensation cap is the lesser of:
- the amount of remuneration received by the person, or that they were entitled to receive (whichever is higher) in the 26 weeks before the dismissal, or
- half the amount of the high income threshold immediately before the dismissal.
If the employee was on leave or was not receiving full pay, the amount of remuneration will be calculated with reference to reg 3.06 of the Fair Work Regulations.
From 1 July 2020, the high income threshold was $153,600 per annum and from 1 July 2021 it is $158,500. Therefore, the compensation cap is:
- $76,800 for a dismissal that occurred on or after 1 July 2020 and before 1 July 2021, and
- $79,250 for a dismissal that occurred on or after 1 July 2021.
 Fair Work Act ss.392(5) and 396(6)(a).
 Fair Work Act s.392(6)(b).