188.8.131.52 Deductions from Payments
Deductions can only be made from payments when a recipient would actually receive an amount if the deduction had not been made.
Types of deductions
The following table describes the types of deduction 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.40) to the Commonwealth.|
A recipient may request deductions for a number of reasons.
A recipient may request that the remainder of their payment be redirected to a third party.
Policy reference: SS Guide 184.108.40.206 Payment to a Third Party