Child Support Deduction
Oct 25, 2023
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🎯 The reporting of payments for Child Support Deduction are now included per the Australian Taxation Office Single Touch Payroll Phase 2 guidance. Child Support Deduction is reported separately under Deduction Type Code = D.
🎯 If you are unsure if this Pay Type applies to your circumstances, please refer to the Payee's Employment Contract or obtain advice from either the Australian Taxation Office or Fair Work Ombudsman.
Child Support Deduction is applicable when the Payee is subject to a notice per section 45 of the Child Support (Registration and Collection) Act 1988. The deduction amount is typically a fixed amount Per Pay Period Deduction and is subject to a Protected Earnings Amount (PEA). To learn more about Child Support, please visit Services Australia.
Child Support Deduction uses the $ (or % of Rate Per Hour) set within the Deduction and Leave Entitlements are not applicable. Payments with this pay type are not considered to be W1 (Total of Salary, Wages & other payments), Taxable or Ordinary Time Earnings (OTE).
