How do I know how much to deduct?

CSA will send you a letter requesting that deductions be made including a 'Schedule of Child Support Deductions'. You are legally required to deduct the specified amount of child support from payments to your employee as directed, unless the PEA applies. Please note PEA does not apply for deductions made under a Section 72A Notice.

You can only change the amount of deductions of child support if CSA advises you in writing, or if the PEA applies. You must not change this amount even if your employee, their solicitor or anyone else asks you to. If you are in doubt, contact CSA on 131 272 for more information.

CSA will issue a notice advising you of any changes to the deductions you must make. For example a notice will be issued if your employee's child support deductions increase or decrease.

Once you make a deduction from your employee's pay, you then become liable to pay that amount to CSA.

Deductions of child support are made after tax-withheld deductions are made and before other deductions such as voluntary superannuation, health fund and loan repayments.

STEP 1: Make tax-withheld deductions from the employee's wages.
STEP 2: Set aside the protected earnings amount (PEA).
STEP 3: Make the deduction of child support, or as much of the specified amount as can be deducted after the PEA has been set aside.
STEP 4: The remaining pay and the PEA can be paid to the employee or used to make other deductions from the employee's pay.

If the full amount of the deductions of child support cannot be made due to the PEA, deduct the maximum amount possible. You will need to send this reduced deduction to CSA with a Child Support Deductions Report or by reporting the variations using CSAonline.

You do not have to do anything further in relation to the amount of child support which could not be deducted due to the PEA.