Garnishee notice
1233 Garnishee notice
If a debt is recoverable from a person (in this section called the debtor) by the Commonwealth under section 1230C of this Act, under the 1947 Act or under the Social Security (Fares Allowance) Rules 1998, the Secretary may by written notice given to another person:
by whom any money is due or accruing, or may become due, to the debtor; or
who holds or may subsequently hold money for or on account of the debtor; or
who holds or may subsequently hold money on account of some other person for payment to the debtor; or
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:
an amount specified in the notice, not exceeding the amount of the debt or the amount of the money referred to in the preceding paragraph that is applicable; or
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
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.
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.
A person who fails to comply with a notice under subsection (1) commits an offence.
Penalty: Imprisonment for 12 months.
Subsection 4B(2) of the Crimes Act 1914 allows a court that convicts an individual of an offence to impose a fine instead of, or in addition to, a term of imprisonment. The maximum fine that a court can impose on the individual is worked out by multiplying the maximum term of imprisonment (in months) by 5, and then multiplying the resulting number by the amount of a penalty unit. The amount of a penalty unit is stated in section 4AA of that Act.
Note 1A: If a body corporate is convicted of the offence, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a maximum fine of an amount that is 5 times the maximum fine that could be imposed on an individual convicted of the same offence.
See also section 1230 (consequence of failure to comply with notice under this section).
Subsection (3) applies only to the extent to which the person is capable of complying with the notice.
Strict liability applies to the element of an offence against subsection (3) that a notice is a notice under subsection (1).
If the Secretary gives a notice to a person under subsection (1), the Secretary must give a copy of the notice to the debtor.
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.
If:
a notice is given to a person under subsection (1) in respect of a debt due; and
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.
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.
This section applies to money in spite of any law of a State or Territory (however expressed) under which the amount is inalienable.
In this section, person includes:
the Commonwealth; and
a State; and
a Territory; and
any authority of the Commonwealth or of a State or Territory.
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