Fair Work Act 2009

An employer may deduct an amount from an amount payable to an employee in accordance with subsection 323(1) if:

the deduction is authorised in writing by the employee and is principally for the employee’s benefit; or

the deduction is authorised by the employee in accordance with an enterprise agreement; or

the deduction is authorised by or under a modern award or an FWC order; or

the deduction is authorised by or under a law of the Commonwealth, a State or a Territory, or an order of a court.

A deduction in accordance with a salary sacrifice or other arrangement, under which an employee chooses to:

forgo an amount payable to the employee in relation to the performance of work; but

receive some other form of benefit or remuneration;

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.

However, an employer must not deduct an amount under paragraph (1)(a) if the deduction is:

directly or indirectly for the benefit of the employer or a party related to the employer; and

for an amount that may be varied from time to time;

An authorisation for the purposes of paragraph (1)(a):

must specify:

for a single deduction—the amount of the deduction; or

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

must include any information prescribed by the regulations; and

may be withdrawn in writing by the employee at any time.

Any variation in a specified amount of a deduction must be authorised in writing by the employee.