Deductions are amounts taken out of an employee’s wages. You can only make deductions from your employees’ wages if it is permitted by their award or enterprise agreement, authorised in writing (see below for details) or allowed under other legislation (such as tax, child support or a court order).
Deductions permitted by your modern award
Your award only allows deductions for voluntary superannuation contributions. This means that unless it is provided by law, in a court order or authorised by your employees (as detailed below) you cannot deduct any amount from your employees’ wages for any other reason.
For more information about voluntary superannuation contributions, see the Superannuation clause of your modern award.
Uniforms and property
Under the allowances section of your modern award, you must provide your employees with any protective or special clothing such as a uniform, dress or other clothing they are required to wear or reimburse them for the cost of purchasing such items. You cannot deduct or charge your employees for the cost of their protective or special clothing if they are required to wear it. See the Uniforms & Clothing and Allowances pages for more information.
Deductions authorised by your employee
Wages deductions that are authorised by your employee in writing are only allowed if they benefit your employee. For example, allowable deductions include:
- salary sacrifice arrangements
- payments into an employee's health fund.
Generally speaking, an employer can only make a deduction from an employee’s pay if:
- it is for the employee's benefit
- it is reasonable
- the employee has agreed in writing
- if the employee is under 18 years old, their guardian or parent has authorised the deduction in writing.
Deductions are not allowed to be made from an employee's wages if they are made to directly or indirectly benefit the employer.