Does Child Support — employer deductions apply to sole traders?

Only if a further fact applies. Across every industry and every size band, the engine's answer for a sole trader is: only if a further fact applies.

Does Child Support — employer deductions apply to businesses with 1–5 employees?

Only if a further fact applies (1–5 employees, turnover $100K–$1M).

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.

Who must comply with Child Support — employer deductions?

The applicability test for Child Support — employer deductions, computed across 35 industries, 9 business structures and 6 size bands.

Short answer: Only if

Applies only if Services Australia serves you a child support deduction notice. Whether it applies turns on a fact that no industry, structure or size settles on its own.

What the obligation is

Employers must comply with Services Australia (Child Support Registrar) deduction notices.

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).

The applicability test

Applies only if Services Australia serves you a child support deduction notice. Whether it applies turns on a fact that no industry, structure or size settles on its own.

How the regulator frames it: 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.

Jurisdiction: Commonwealth law, so the test is the same in every state and territory.

Which industries are in or out

Outcome across the 35 industries Rules Mate maps (35 of 35: only if a further fact applies).

The answer is the same in every industry: only if a further fact applies. Industry does not change who must comply.

Business structure and size

Structure does not change the answer across all industries: for every structure the answer is "only if a further fact applies".

Size band	Answer across all industries, any structure
No employees (turnover $100K–$1M)	No
1–5 employees (turnover $100K–$1M)	Only if a further fact applies
6–19 employees (turnover $1M–$3M)	Only if a further fact applies
20–99 employees (turnover $3M–$10M)	Only if a further fact applies
100–499 employees (turnover $10M–$100M)	Only if a further fact applies
500+ employees (turnover $100M–$1B)	Only if a further fact applies

Worked examples

Each line is one run of the Rules Mate applicability engine for a single business profile, with the reason the engine gives:

Pty Ltd company in real estate agents with no employees, turnover $100K–$1M: does not apply. Requires a trigger outside this questionnaire.
Pty Ltd company in real estate agents with 6–19 employees, turnover $1M–$3M: check whether it applies. applies only if Services Australia serves you a child support deduction notice.
Pty Ltd company in real estate agents with 500+ employees, turnover $100M–$1B: check whether it applies. applies only if Services Australia serves you a child support deduction notice.

When you need to check further

The engine shows this obligation as "check whether this applies" when a business has employees. It then applies only if Services Australia serves you a child support deduction notice. That fact is not something Rules Mate can infer from industry, structure or size.

What you must do, and when

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.
Frequency: Monthly
Evidence to keep: 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.
Status: Current
Priority: Medium

Penalty for not complying

Maximum 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).

Audit or assurance level

Rules Mate has not yet classified the audit or assurance level for this obligation. Any audit, review or certification requirement is set by the regulator source listed below.

Where it sits in the corpus

Rules Mate tracks 1 published obligation tagged "employment", 0 of them rated critical. For a professional services Pty Ltd company with 6–19 employees operating in every state, 0 of those apply outright. This obligation is rated medium priority, and is a monthly obligation.

Regulator, legislation and tools

Free tools that help with this obligation:

Run the compliance journeyAnswer a short questionnaire about your business and get the obligations that apply to you, with the reason each one applies.

Questions

Who must comply with Child Support — employer deductions?: Applies only if Services Australia serves you a child support deduction notice. Whether it applies turns on a fact that no industry, structure or size settles on its own.
Does Child Support — employer deductions apply to sole traders?: Only if a further fact applies. Across every industry and every size band, the engine's answer for a sole trader is: only if a further fact applies.
Does Child Support — employer deductions apply to businesses with 1–5 employees?: Only if a further fact applies (1–5 employees, turnover $100K–$1M).
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.

Sources

Official source

Computed by the Rules Mate applicability engine from the published obligation corpus; facts last checked 3 October 2026. Rules Mate is not a law firm and this is general information, not legal advice. Confirm your position with the regulator source or a qualified adviser before acting.