Document ID: chunk:federal_register_of_legislation:C2025C00150:section:324
Version: federal_register_of_legislation:C2025C00150
Segment Type: section
Provision Reference: s 324
Character Range: 897685–899812

324  Permitted deductions
 (1) An employer may deduct an amount from an amount payable to an employee in accordance with subsection 323(1) if:
 (a) the deduction is authorised in writing by the employee and is principally for the employee's benefit; or
 (b) the deduction is authorised by the employee in accordance with an enterprise agreement; or
 (c) the deduction is authorised by or under a modern award or an FWC order; or
 (d) the deduction is authorised by or under a law of the Commonwealth, a State or a Territory, or an order of a court.
Note 1: A deduction in accordance with a salary sacrifice or other arrangement, under which an employee chooses to:
(a) forgo an amount payable to the employee in relation to the performance of work; but
(b) receive some other form of benefit or remuneration;
 will be permitted if it is made in accordance with this section and the other provisions of this Subdivision.
Note 2: Certain terms of modern awards, enterprise agreements and contracts of employment relating to deductions have no effect (see section 326). A deduction made in accordance with such a term will not be authorised for the purposes of this section.
 (1A) However, an employer must not deduct an amount under paragraph (1)(a) if the deduction is:
 (a) directly or indirectly for the benefit of the employer or a party related to the employer; and
 (b) for an amount that may be varied from time to time;
unless the deduction, if it were a deduction referred to in subsection 326(1), would be a deduction made in circumstances prescribed under subsection 326(2) to be reasonable.
 (2) An authorisation for the purposes of paragraph (1)(a):
 (a) must specify:
 (i) for a single deduction—the amount of the deduction; or
 (ii) for multiple or ongoing deductions—whether the deductions are for a specified amount or amounts, or for amounts as varied from time to time; and
 (aa) must include any information prescribed by the regulations; and
 (b) may be withdrawn in writing by the employee at any time.
 (3) Any variation in a specified amount of a deduction must be authorised in writing by the employee.