Child Support — employer deductions
Employers must comply with Services Australia (Child Support Registrar) deduction notices.
Who must comply
Any employer, including a government body, that pays salary or wages to an employee named in a deduction notice from the Child Support Registrar (Services Australia). Where the payer has two or more employers, the Registrar may treat one as the only employer or spread deductions across them (s 48).
What triggers it
Receiving a s 45(1) notice from the Child Support Registrar, or a later notice varying or revoking it.
When due
At the time of each payment of salary or wages from the date specified in the notice; payment and notice to the Registrar by the 7th day of the month after the deductions were made. A nil notice is also due by the 7th when a notice was in force but no deduction was made (s 47(1A)), unless the amount was reported to the ATO through voluntary employer reporting.
Evidence required
Each s 45 notice and any variation or revocation; payroll records showing the weekly rate applied and the protected earnings calculation per pay; written deduction advices given to the employee; monthly remittance and notice records to the Registrar; records of nil notices.
Max penalty
Failing to make a required deduction is a strict liability offence of 10 penalty units ($3,640, s 46(4A)). A non-government employer that fails to deduct is also liable to pay the Registrar a penalty equal to the undeducted amount plus 20% per annum on the unpaid amount (s 52). Prejudicing an employee because of a child support liability or deduction notice is an offence of up to 20 penalty units ($7,280, s 57).
Who must comply with this? The applicability test by industry, business structure and size.
Summary
Part IV of the Child Support (Registration and Collection) Act 1988 lets the Child Support Registrar collect a parent's child support by directing their employer to deduct it from salary or wages. Under s 45 the Registrar gives the employer a written notice identifying the employee, the start date and a weekly deduction rate. From then on the employer must deduct at each pay (s 46), applying the weekly rate to the pay period but never reducing the employee's pay below the protected earnings amount, tell the employee in writing about each deduction, and pay the amounts to the Registrar with a notice by the seventh day of the following month (s 47). The employer may not dismiss, refuse to employ or otherwise prejudice a person because they pay child support or are subject to a deduction notice (s 57).
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Frequently asked questions
- Who must comply with Child Support — employer deductions?
- Any employer, including a government body, that pays salary or wages to an employee named in a deduction notice from the Child Support Registrar (Services Australia). Where the payer has two or more employers, the Registrar may treat one as the only employer or spread deductions across them (s 48).
- What triggers Child Support — employer deductions?
- Receiving a s 45(1) notice from the Child Support Registrar, or a later notice varying or revoking it.
- When is Child Support — employer deductions due?
- At the time of each payment of salary or wages from the date specified in the notice; payment and notice to the Registrar by the 7th day of the month after the deductions were made. A nil notice is also due by the 7th when a notice was in force but no deduction was made (s 47(1A)), unless the amount was reported to the ATO through voluntary employer reporting.
- What is the maximum penalty for Child Support — employer deductions?
- Failing to make a required deduction is a strict liability offence of 10 penalty units ($3,640, s 46(4A)). A non-government employer that fails to deduct is also liable to pay the Registrar a penalty equal to the undeducted amount plus 20% per annum on the unpaid amount (s 52). Prejudicing an employee because of a child support liability or deduction notice is an offence of up to 20 penalty units ($7,280, s 57).
- What evidence is required for Child Support — employer deductions?
- Each s 45 notice and any variation or revocation; payroll records showing the weekly rate applied and the protected earnings calculation per pay; written deduction advices given to the employee; monthly remittance and notice records to the Registrar; records of nil notices.
Source: https://www.legislation.gov.au/C2004A03596/latest/text. Rules Mate is not a law firm. Always verify against the live regulator source before acting.