Protected earnings amount 2026 calculator
When you deduct child support from an employee's pay, Services Australia sets a protected earnings amount (PEA): the net pay the employee must keep each pay period. If the full deduction would take their net pay below the PEA, you deduct only the part above it. This calculator works that out for one pay period.
Work out the child support deduction for this pay
The PEA changes each year on 1 January. Monthly figures here use 52 weeks over 12 months; check Services Australia's guidance for your employee's notice. This is a guide, not advice.
Child support deductions in Xero Payroll
Xero Payroll lets you set up a child support deduction as a fixed amount, but it does not stop the deduction taking net pay below the protected earnings amount. Payroll officers and bookkeepers check it by hand every pay run, and carry any shortfall forward themselves, or forget to.
What happens if you deduct too much
Deducting past the PEA leaves your employee short, and the over-deduction has to be refunded and corrected with Services Australia. A shortfall from deducting less must still be reported.
Cap child support at the protected earnings amount in every Xero pay run
We're building a small add-on for Australian employers on Xero Payroll. Before you post each pay run, it reads the draft payslips, checks every child support deduction against the PEA for the pay period, lowers any deduction that would take net pay below it, and keeps a running shortfall report for your bookkeeper.
A$10 a month per organisation.
It isn't live yet: the button takes you to the waitlist, and nothing is charged.
Join the waitlist
Not affiliated with or endorsed by Xero or Services Australia.