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, and 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.

An attachment order is received from the Ministry of Justice for $60 per week. The order lists the client's protected earnings rate as $317.76 per week:

Calculate if Attachment Order will exceed protected earnings

The client's income is $309.60, which is below the protected income rate of $317.76.

The attachment order will not operate, you must return it to the Ministry of Justice for the order to be amended.