1.1.P.120 Protected earnings
Definition
When employer withholding (1.1.E.20) is in place, protected earnings is the amount of income an employer is required to leave a payer (1.1.P.40) with after they have deducted child support (1.1.C.60) from their salary or wage. Protected earnings is deducted from a parent’s (1.1.P.10) salary or wage after taxation. In circumstances where the payer would be left with less that the protected earnings amount an employer should not deduct the full specified amount of the periodic deduction from an employee’s salary or wage.
The protected earnings rate is a weekly rate prescribed by regulation. The weekly rate is prescribed as 75% of the maximum fortnightly basic rate of JSP payable on 1 January each year, to a person who has turned 21 years of age and is partnered, with no dependent children. The protected earnings rate is used to calculate the amount of the deductions for salary or wage payments made in each respective calendar year.
Example: In March 2022, Anna earns $500.00 a week and pays tax of $33.00 a week. Anna's employer is required to deduct child support of $60.00 a week. Anna is paid after-tax wages of $467.00 a week. The protected earnings rate at 1 January 2022 is $429.98. To deduct $60.00 in child support would leave Anna with less than the protected earnings rate. For that week, Anna's employer can only deduct $37.02 ($467.00 less $429.98).
The protected earnings amount for recent years is:
| Year | Amount ($) |
|---|---|
| 2024 | 514.50 per week |
| 2023 | 456.53 per week |
| 2022 | 429.98 per week |
| 2021 | 383.10 per week |
| 2020 | 378.53 per week |
| 2019 | 372.53 per week |
| 2018 | 364.88 per week |
| 2017 | 358.05 per week |
| 2016 | 354.45 per week |
| 2015 | 349.13 per week |
| 2014 | 339.23 per week |
| 2013 | 333.53 per week |
| 2012 | 329.55 per week |
| 2011 | 318.00 per week |
| 2010 | 308.63 per week |
| 2009 | 304.05 per week |