Compliance Update – January 2020

The latest people and payroll compliance updates

The ATO have recently announced changes which may impact your HR and payroll. Here’s a short summary of recent changes and ways we suggest your business can get up to speed.

AUSkey Decommissioning

At the end of March 2020 the ATO will be decommissioning AUSkey and replace it with a new authentication and authorisation service to allow you to access government online services.

More information: https://www.ato.gov.au/Business/Business-bulletins-newsroom/General/AUSkey-replacement-coming/?BusBullNewsroomLanding=

Child Support and the Protected Earnings Amount in 2020

The Protected Earnings Amount (PEA) is the part of an employee’s or contractor’s wages that are exempt from child support deductions. The PEA doesn’t apply to garnishee notices requesting deductions under section 72A of the Child Support (Registration and Collection) Act 1988.

The PEA is adjusted on 1 January each year to allow for increases in the cost of living.

The following PEA rates apply from 1 January 2020:

  • Weekly: $378.53
  • Fortnightly: $757.06 (weekly rate x 2)
  • Four-week period: $1,514.12 (weekly rate x 4)
  • Monthly period: $1,645.93 (daily rate x 30.4375)

For child support purposes, a year is 365.25 days (allowing for the leap year). The number of days in a month is 30.4375, which is equal to 365.25 divided by 12. Figures are rounded where applicable.

The daily rate (unrounded) is calculated by the weekly rate divided by 7 (that is 378.53 / 7 = 54.07571).

For more information:

  • go to humanservices.gov.au/pea
  • call the Australian Government Department of Human Services on 131 272

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