When can my employer deduct money from my wages in Australia?

Under section 324 of the Fair Work Act, an employer can generally only deduct money from your wages where you have authorised the deduction in writing and it is principally for your benefit, or where the deduction is authorised by a modern award, an enterprise agreement, a Fair Work Commission order, or a law. A deduction that doesn't meet one of these conditions may not be permitted.

How do I question a deduction from my pay without causing conflict?

Raise it as a question rather than an accusation. Tell your employer what you noticed on your payslip, mention your understanding of the rules on deductions, and ask them to confirm what the deduction was for and the basis for it. Keeping the tone polite and open makes it more likely the issue is resolved quickly.

What if I think the deduction was wrong?

Start by asking your employer to explain it — you may have forgotten an arrangement or misread the payslip. If you still have concerns after their response, the Fair Work Ombudsman offers free information on deductions from pay on 13 13 94 (fairwork.gov.au). This tool produces a query letter, not legal advice.

Wage Deduction Query Letter

Free template letter to politely question a deduction made from your wages. References the Fair Work Act rules on permitted deductions (s.324). Not legal advice. PDF download.

Last verified: 2 August 2026

General information and estimates only — not legal, financial or tax advice. Always check your specific award, agreement or contract, or a qualified professional, before you rely on the result.

Wage Deduction Query Letter

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