4.3.7 Deductions from Instalments
Types of deductions
The following table describes the types of deductions that can be made from an individual's fortnightly payments and the order in which they are made.
|Type of deduction||Order of deduction||Description|
|Compulsory||First||Compulsory deductions are called withholdings. They are used to recover debts (1.1.D.60) to the Commonwealth.|
|Requested by an individual||Second||An individual may request deductions for a number of reasons.
If appropriate, the remainder of an individual's payment may be redirected to a third party on behalf of the individual.
Policy reference: FA Guide 4.3.6 Payments to a Third Party