37Deduction rates that apply to standard deductions from salary or wages

1. If the employer of a borrower has not been notified that a special deduction rate applies to the borrower, deductions must be made at the rate of 12 cents in each complete dollar from—

2. so much of the primary employment earnings paid to the borrower as exceeds the pay period repayment threshold; and
3. any secondary employment earnings paid to the borrower.

4. If the employer has been notified that a special deduction rate applies to the borrower, deductions must be made at the special deduction rate specified in the applicable special deduction rate certificate from—

5. the primary employment earnings paid to the borrower; and
6. any secondary employment earnings paid to the borrower.

7. If the repayment percentage is changed by regulations, the deduction rate in subsection (1) is changed accordingly.

8. When a change occurs to a rate in this Act, or in regulations made under this Act, affecting the deduction from primary employment earnings paid to the borrower or secondary employment earnings paid to the borrower, the calculation of the amount of the deduction must be made at the rate applying on the day on which the employment earnings are paid to the borrower.

9. In this section, pay period repayment threshold means,—

10. if the salary or wages are paid weekly, an amount equal to one fifty-second of the annual repayment threshold; and
11. if the salary or wages are paid fortnightly, twice the amount specified in paragraph (a); and
12. if the salary or wages are paid three-weekly, 3 times the amount specified in paragraph (a); and
13. if the salary or wages are paid four-weekly, 4 times the amount specified in paragraph (a); and
14. if the salary or wages are paid monthly, an amount equal to one-twelfth of the annual repayment threshold; and
15. if the salary or wages are paid other than as set out in paragraphs (a) to (e), an amount determined by the Commissioner to reflect the pay period.