Protected earnings rate
Both the District Court Act and the Summary Proceedings Act provide that every attachment order must specify a 'protected earnings rate'.
The protected earnings rate is usually 60% of the client's net earnings after PAYE tax has been deducted or withheld.
If the attachment order will reduce the client's income below the protected earnings rate, then the order will not operate and MSD must cancel or return the attachment order to the Court, Ministry of Justice.
Calculating the client's income differs between attachment orders made under the Summary Proceedings Act and the District Court Act, as different benefits are included. Therefore it is important to determine what type of attachment order has been issued.
Summary Proceedings Act 1957
For orders made under the Summary Proceedings Act, the calculation of the client's income does not include Special Benefit, Disability Allowance, Child Disability Allowance, Temporary Additional Support, Winter Energy Payment, Orphans Benefit or Unsupported Child's Benefit.
District Court Act 2016
For orders made under the District Court Act, the client's income includes Temporary Additional Support, Special Benefit and Disability Allowance but does not include Child Disability Allowance, and Orphans Benefit or Unsupported Child's Benefit.
Example
An attachment order is received from the Ministry of Justice for $75.00 per week. The attachment order shows that the client's protected earnings rate is $295.83 per week.
The client's attachment order falls under the District Court Act 2016. The client's Temporary Additional Support is therefore included as income.
We need to calculate whether adding the deduction of $75.00 per week will reduce the client's income below the protected earnings rate:
Calculate protected earnings rate
Jobseeker Support - single person 25+ net rate (as at 1 April 2026) | $372.55 |
Plus Accommodation Supplement (Area 3) | $80.00 |
Plus Temporary Additional Support (Weekly qualifying accommodation costs (Rent) $202.00 less $33.10 accommodation deduction ($168.90) + vehicle repayments ($50.00) and + Television repayments ($20.00)) | $40.50 |
Total net earnings | $493.05 |
60% of total net earnings (= protected earnings) | $295.83 |
Calculate if Attachment Order will exceed protected earnings | |
Total net earnings | $493.05 |
Less Child Support deduction | $55.00 |
Less Ministry of Social Development debt | $70.00 |
Sub total | $368.05 |
Less Attachment Order | $75.00 |
Total net income remaining for the client per week | $293.05 |
The attachment order amount of $75.00 takes the client's total net income remaining to $293.05, which is below the protected earnings rate of $295.83 per week.
The attachment order will not operate therefore MSD must return it to the Ministry of Justice for the order to be amended.
Legislation
- Protected net earnings rate section 165 Child Support Act 1991
- Effect of attachments orders section 157 District Court Act 2016
- Content of attachment orders section 105 Summary Proceedings Act 1957
- Protected earnings regulation 224 Social Security Regulations 2018
