A New Tax System (Family Assistance) (Administration) Act 1999

PART 4 - OVERPAYMENTS AND DEBT RECOVERY  

Division 3 - Methods of recovery  

SECTION 89   Garnishee notice  

89(1)    
If, under section 82 , a debt is recoverable from a person (the debtor ) by the Commonwealth by means of a garnishee notice, the Secretary may by written notice given to another person:

(a) by whom any money is due or accruing, or may become due, to the debtor; or

(b) who holds or may subsequently hold money for or on account of the debtor; or

(c) who holds or may subsequently hold money on account of some other person for payment to the debtor; or

(d) who has authority from some other person to pay money to the debtor;

require the person to whom the notice is given to pay the Commonwealth:

(e) an amount specified in the notice, not exceeding the amount of the debt or the amount of the money referred to in paragraph (a), (b), (c) or (d); or

(f) such amount as is specified in the notice out of each payment that the person becomes liable from time to time to make to the debtor until that debt is satisfied; or

(g) such percentage as is specified in the notice of each payment that the person becomes liable from time to time to make to the debtor until that debt is satisfied.

89(2)    
The time for making a payment in compliance with a notice under subsection (1) is such time as is specified in the notice, not being a time before the money concerned becomes due or is held or before the end of the period of 14 days after the notice is given.

89(3)    
A person must not refuse or fail to comply with a notice under subsection (1) to the extent to which the person is capable of complying with the notice.

Penalty: Imprisonment for 12 months.

89(4)    
If the Secretary gives a notice to a person under subsection (1), the Secretary must give a copy of the notice to the debtor.

89(5)    
A person who makes a payment to the Commonwealth in compliance with a notice under subsection (1) is to be taken to have made the payment under the authority of the debtor and of any other person concerned.

89(6)    
If:

(a) a notice is given to a person under subsection (1) in respect of a debt; and

(b) an amount is paid by another person in reduction or in satisfaction of the debt;

the Secretary must notify the first-mentioned person accordingly, and the amount specified in the notice is to be taken to be reduced by the amount so paid.

89(7)    
If, apart from this subsection, money is not due or repayable on demand to a person unless a condition is fulfilled, the money is to be taken, for the purposes of this section, to be due or repayable on demand, as the case may be, even though the condition has not been fulfilled.

89(8)    
This section applies to money in spite of any law of a State or Territory (however expressed) under which the amount is inalienable.

89(9)    

This section binds the Crown in right of the Commonwealth, of each of the States, of the Australian Capital Territory and of the Northern Territory.