Garnishee notices
58AA Garnishee notices
This section applies in relation to an amount:
that is a recoverable amount (the debt) under subsection 56(2), 56A(1), (3), (5) or (8) or 57(5); and
that is recoverable from a person (the debtor) or from the estate of that person; and
in relation to which any rights of review by the Chief Executive Medicare under section 56D have been exhausted or have expired.
If a person (the third party) owes or may later owe money to the debtor or estate, the Chief Executive Medicare may give a written notice (the garnishee notice) to the third party.
Third party regarded as owing money in these circumstances
The third party is taken to owe money (the available money) to the debtor or estate if the third party:
is a person by whom the available money is due or accruing to the debtor or estate; or
holds the money for, or on account of, the debtor or estate; or
holds the money on account of some other person for payment to the debtor or estate; or
has authority from some other person to pay the money to the debtor or estate.
The third party is taken to owe the available money to the debtor or estate even if:
the money is not due, or is not so held, or payable under the authority, unless a condition is fulfilled; and
the condition has not been fulfilled.
How much is payable under the notice
The garnishee notice must:
require the third party to pay to the Commonwealth the lesser of, or a specified amount not exceeding the lesser of:
the debt; or
the available money; or
if there will be amounts of the available money from time to time—require the third party to pay to the Commonwealth a specified amount, or a specified percentage, of each amount of the money, until the debt is satisfied.
When amount must be paid
The garnishee notice must require the third party to pay an amount under paragraph (5)(a), or each amount under paragraph (5)(b), within the period specified in the notice.
Debtor must be notified
The Chief Executive Medicare must send a copy of the garnishee notice to the debtor or estate.
Setting off amounts
If a person other than the third party has paid an amount to the Commonwealth that satisfies all or part of the debt:
the Chief Executive Medicare must notify the third party of that fact; and
any amount that the third party is required to pay under the garnishee notice is reduced by that amount.
Indemnity
If an amount is paid by the third party in accordance with the garnishee notice:
the payment is taken to have been authorised by:
the debtor or estate; and
any other person who is entitled to all or a part of the amount; and
the third party is indemnified for the payment.
Garnishee notice to Commonwealth, State or Territory
If the third party is the Commonwealth, a State or a Territory, the Chief Executive Medicare may give the notice to a person who is (as the case requires):
employed by the Commonwealth, State or Territory; and
required, or authorised, to disburse public money under a law of the Commonwealth, State or Territory.
Section binds the Crown
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.
However, this section does not make the Crown liable to be prosecuted for an offence.
To avoid doubt, this section does not imply that the Crown is, or is not, bound by any other provision of this Act.
Review of decisions
The debtor or estate may apply to the Administrative Review Tribunal for review of a decision by the Chief Executive Medicare to give a garnishee notice to a person under subsection (2).
This Act’s bill:Explanatory memorandumSecond reading speech
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