Garnishee of continuing income to recover debts 107-05050010

Amanda is ready to place a wage garnishee to recover Kylie's Family Tax Benefit totalling $1,365.

Amanda confirms Kylie's employment and wages of $500 gross per week.

Amanda refers to the ongoing wage garnishee instalment rates. Amanda determines the instalment rate needs to be the greater of 10% of gross income or acceptable cash levels. This is $30 or $60 fortnight.

As Kylie's debt is, more than $750 but less than $1,500 the applicable acceptable cash level is $60 per fortnight. ($30 per week).

As Kylie earns $500 gross per week, 10% of Kylie's gross income would equate to $50 per week.

Amanda sets the garnishee at 10% of gross income, as this is greater than minimum acceptable cash levels ($30 week).

Drew is ready to place a wage garnishee to recover Susan's Family Tax Benefit (FTB) Debt totalling $22,856. Drew has confirmed Susan's employment and wages of $800 gross per week.

Drew refers to the ongoing wage garnishee instalment rates and determines that the instalment rate is 10% of gross income. The garnishee is therefore coded at 10% of gross weekly income.

Note: for FTB debts over $1,500, the acceptable cash rate is not used to determine instalment rates. These debts are recovered within 12 months. Customers would have a large portion of their wages garnisheed if the agency applied a garnishee at this level.

For example, Susan's debt would result in a garnishee of $439 per week ($22,856 divided by 52 weeks).

Nathan is ready to place a wage garnishee to recover Charlie's JobSeeker Payment (JSP) debt of $4,247. Nathan has confirmed Charlie's employment and wages of $460 gross per week.

Nathan refers to the ongoing wage garnishee instalment rates and determines that the instalment rate needs to be the greater of 10% of gross income or minimum acceptable cash levels. This is $30, $60 or $100 fortnight depending on debt size.

As Charlie's debt is more than $2,500 but less than $5,000 the acceptable cash level is $100 per fortnight.

As Charlie earns $460 gross per week, 10% of his gross income would equate to $46 per week.

Nathan sets the garnishee at $50 per week. This is the greater of 10% ($46 per week) or acceptable cash levels ($50 per week).

Now that Nathan has determined the instalment rate Nathan now needs to determine the Notice Amount. Nathan knows the total amount of Charlie's debts is $4,247. Charlie is also accruing interest not yet applied to the debt.

Nathan uses the 'update interest' calculation from Customer First and determines that interest of $15.00 has accrued.

Nathan sets the garnishee notice amount at $4,262 ($4,247 + $15).