Debt from failure to comply with garnishee notice
265 Debt from failure to comply with garnishee notice
If a person (garnishee debtor):
is given a notice under section 264 in respect of a debt; and
fails to comply with the notice to the extent that the garnishee debtor is capable of complying with it;
then the amount of the debt outstanding is recoverable from the garnishee debtor by the Commonwealth by:
legal proceedings in a court of competent jurisdiction; or
a garnishee notice under section 264.
The reference in subsection (1) to the amount of the debt outstanding is a reference to whichever is the lesser of:
as much of the amount required by the notice under section 264 to be paid by the garnishee debtor as the garnishee debtor was able to pay; or
as much of the debt due at the time when the notice was given as remains due from time to time.
If the Commonwealth recovers:
the whole or a part of the debt due by the garnishee debtor; or
the whole or a part of the debt due by the debtor (within the meaning of section 264);
then:
both debts are reduced by the amount that the Commonwealth has so recovered; and
the amount specified in the notice under section 264 is taken to be reduced by the amount so recovered.
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