There are two ways Services Australia may ask to deduct child support from employees - either a Notice to Commence Child Support Deductions or Notice to Pay Money Directly to Child Support Registrar Pursuant to Section 72A.
- Notice to Commence Child Support Deductions (issued under section 45).This is the everyday order for an employee's ongoing child-support. You withhold the exact dollar amount (or percentage of net pay) shown on the notice but only after the employee keeps at least the current Protected Earnings Amount (PEA).
- Notice to Pay Money Directly to the Child Support Registrar pursuant to section 72A (often called a garnishee). This is used to recover child-support arrears. You must withhold exactly what the notice demands and the PEA safety-new does not apply.
Microkeeper offers two classification selections when configuring a child support deduction to support this:
- Child Support PEA = Protected Earnings Amount. An amount that is protected from a Child Support Deduction. This amount is updated on the first day of each year and is maintained by Microkeeper
- Child Support 72A = Clause 72A means PEA does not apply.