Protected Earnings Amount when deducting child support
The Protected Earnings Amount (PEA) is the part of an employee's or contractor’s pay exempt from child support deductions.
It means you don’t deduct all of their pay for child support payments.
The PEA doesn't apply to deductions under section 72A notices.
What the formula is
PEA = Maximum fortnightly basic rate of JobSeeker Payment x 0.75.
The weekly PEA is equal to 75% of the maximum fortnightly basic rate of JobSeeker Payment, for a person who is partnered with no dependent children. The basic rate of JobSeeker Payment doesn't include the Coronavirus Supplement.
The following amounts apply to pay dates from 1 January 2021 to 31 December 2021:
|Pay cycle||PEA calculation|
|Daily||$383.10 ÷ 7 days = $54.72857|
|Fortnightly||$383.10 x 2 weeks = $766.20|
|4 weekly||$383.10 x 4 weeks = $1,532.40|
|Monthly||$54.72857 x 30.4375 days per month = $1665.80|
For child support purposes, a year is equal to 365.25 days. This allows for leap years. This means there are 30.4375 days in a month.
Days in a month = 365.25 ÷ 12
Figures are rounded where applicable.
We adjust the PEA annually. If you currently deduct child support, you'll get a letter by December each year to let you know.
When to contact us
You may need to deduct less than the agreed amount. This is to make sure the employee or contractor’s net pay isn’t less than the PEA. This means the employee or contractor’s pay, after deducting tax and child support, needs to be at least the PEA.
If you can't deduct the full amount of child support, send us the reduced deduction and explain the variation. To do this either:
- call the Child Support general enquiry line
- complete the Child Support deduction form
- register for Child Support Business Online Services.
You don't have to do anything about the outstanding child support you couldn't deduct due to the PEA.
Page last updated: 1 January 2021
This information was printed 27 November 2021 from https://www.servicesaustralia.gov.au/organisations/business/services/child-support/child-support-information-employers/deductions/protected-earnings-amount-when-deducting-child-support. It may not include all of the relevant information on this topic. Please consider any relevant site notices at https://www.servicesaustralia.gov.au/individuals/site-notices when using this material.