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Jobs & Work Rights

Can my employer deduct money from my wages in Australia?

Answered by LandedAU · 2026-07-01

Wage Deductions in Australia

Your employer can only deduct money from your wages in specific circumstances under Australian law. Most deductions are not allowed.

Allowed Deductions

Your employer may deduct money from your wages for:

  • Tax and superannuation – required by law
  • Court orders – such as child support or fines
  • Your written agreement – for union fees, charitable donations, or other purposes you've agreed to in writing
  • Damage or loss – only if you caused it through negligence, and only if it's reasonable
  • Overpayment of wages – if you were paid more than you should have been

Not Allowed

Your employer cannot deduct money for:

  • Uniforms or work equipment (unless you agreed in writing and it's reasonable)
  • Breakages or shortages (unless you caused them through negligence)
  • Training costs
  • Cash register shortfalls (unless you caused them)
  • Anything that would reduce your pay below the minimum wage

Important Rules

Any deduction must be:

  • Authorised by law or your written agreement
  • Fair and reasonable
  • Not reduce your pay below the national minimum wage

If your employer makes an unauthorised deduction, you can lodge a claim with the Fair Work Ombudsman or take action through the Fair Work Commission.

What to Do

If you believe an illegal deduction has been made:

  • Ask your employer in writing why the deduction was made
  • Keep all payslips and records
  • Contact the Fair Work Ombudsman for free advice

Fair Work Ombudsman – Deductions from Pay

Fair Work Ombudsman

This is general information only. Check official sources before acting.

This is general information only. Always check official sources before acting. ← More questions

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