What is the Child Support Agency’s Protected Earnings Amount?
This is the amount of an employee’s wages or contractor’s payments that are exempt from child support deductions. A set minimum amount, also known as the Protected Earnings Amount (PEA), is the amount that must be left after tax and child support is deducted.
The PEA is indexed annually to allow for increases in the cost of living. Employers are notified in writing of the new amount by December each year. Please note that the PEA does not apply to Section 72a notices.
How is the PEA calculated?
The weekly PEA is equal to 75 per cent of the maximum fortnightly basic rate of the Newstart Allowance for a person who is over 21, partnered and has no dependent children.
The 2012 Newstart Allowance amount (for a person who is over 21, partnered and has no dependent children) is $439.40 per fortnight. The weekly PEA is equal to 75 per cent of $439.40 (439.40 x 0.75 = 329.55).
The weekly PEA for 2012 is $329.55. This is the amount that must be set aside for your employee after tax and child support is deducted.
| Pay cycles | Calculation |
|---|---|
| Daily | $329.55 ÷ 7 days = $47.078571 |
| Weekly | $47.078571x 7 days = $329.55 |
| Fortnightly | $47.078571 x 14 days = $659.10 |
| Four weekly | $47.078571 x 28 days = $1318.20 |
| Monthly | $47.078571 x 30.4375 = $1432.95 |
| Bi-monthly | $1432.95 x 2 = 2865.90 |
Note: a year is equal to 365.25 days (allowing for the leap year), 30.4375 days in a month is equal to 365.25 divided by 12. Figures are rounded where applicable.
These amounts are effective from 1 January 2012.
Do you have child support questions?
More information, including an employer calculator, is available on the CSA website
www.csa.gov.au. You can
also call 131 272 and ask for Employer Services.