The coverage clause (at sub clauses 4.2, 4.3 and 4.4) also identifies those categories of employees not covered by a modern award.

Modern awards do not apply to employees who are already covered by an enterprise agreement or an enterprise (i.e. “company”) award, or to employees who are high income employees (sections 47 and 329 of the FW Act).

A “high income employee” is an employee who has a guarantee of annual earnings with the employer of a rate that exceeds the high income threshold (section 329).

On 1 July 2010 the high income threshold was set at $113,800 per annum.  This rate is adjusted on 1 July every year.