Protected earnings rate
Both the District Court Act and the Summary Proceedings Act provide that every Ministry of Justice 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 you must cancel or return the attachment order to the Ministry of Justice.
Calculating the client's income differs between attachment orders made under the Summary Proceedings Act and the District Court Act, in that different benefits are taken into account. 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, Temporary Additional Support, Disability Allowance, Child Disability Allowance, 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 Special Benefit, Temporary Additional Support and Disability Allowance but does not include Child Disability Allowance, Orphans Benefit or Unsupported Child's Benefit
Example
An attachment order is received from the Ministry of Justice for $50.00 per week. The order lists the client's protected earnings rate as $396.09 per week.
We need to calculate whether adding the deduction of $50.00 will reduce the client's income below the protected earnings rate.
Calculate protected earnings rate:
New Zealand Superannuation paid at the single living alone rate (net at 'M' tax rate as at 1 April 2026) | $555.15 |
Plus Accommodation Supplement (Area 2) | $105.00 |
Total net earnings | $660.15 |
60% of total net earnings (= protected earnings) | $396.09 |
Calculate if Attachment Order will exceed protected earnings | |
Total net earnings | $660.15 |
Less Child Support deduction | $95.00 |
Less Ministry of Social Development debt | $130.00 |
Sub total | $435.15 |
Less Court order | $50.00 |
Total | $385.15 |
The court order takes the client's income to $385.15, which is below the protected income rate of $396.09.
The attachment order will not operate, you must return it to the Ministry of Justice for the order to be amended.
Legislation
- Effect of attachment 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
