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

PART 4 - OVERPAYMENTS AND DEBT RECOVERY  

Division 2 - Amounts recoverable under this Act  

SECTION 80   Debt from failure to comply with garnishee notice  

80(1)    
If:

(a) a person (the garnishee debtor ) is given a notice under section 89 in respect of a debt due by another person (the original debtor ) under this Act; and

(b) the garnishee debtor fails to comply with the notice to the extent that he or she is capable of complying with it;

then the amount of the debt outstanding (worked out under subsection (2)) is recoverable from the garnishee debtor by the Commonwealth by means of:

(c) legal proceedings; or

(d) garnishee notice.

80(2)    
The amount of the debt outstanding is the amount equal to:

(a) as much of the amount required by the notice under section 89 to be paid by the garnishee debtor as the garnishee debtor was able to pay; or

(b) as much of the debt due by the original debtor at the time when the notice was given as remains due from time to time;

whichever is the lesser.

80(3)    
If the Commonwealth recovers:

(a) the whole or part of the debt due by the garnishee debtor under subsection (1); or

(b) the whole or part of the debt due by the original debtor;

then:

(c) both debts are reduced by the amount that the Commonwealth has so recovered; and

(d) the amount specified in the notice under section 89 is to be taken to be reduced by the amount so recovered.

80(4)    
This section applies to an amount in spite of any law of a State or Territory (however expressed) under which the amount is inalienable.

80(5)    

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.