8.4.1.40 Deductions from Payments

Summary

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.
Recipient requested Second

A recipient may request deductions for a number of reasons.

Examples:

  • board and lodging to a place where they live, such as a migrant centre,
  • rent payments to a public housing authority, OR
  • taxation payments.

A recipient may request that the remainder of their payment be redirected to a third party.

Policy reference: SS Guide 8.4.1.30 Payment to a Third Party

Last reviewed: 8 May 2017