Other types of garnishees to recover debts 107-05050050

Before applying a garnishee:

• check the customer's record
• make reasonable effort to contact the customer
• attempt to discuss all payment options with the customer

Garnishee action may only be taken where all other options have been pursued (unless it is determined that other recovery options are not appropriate in the circumstances of the case), and the person has failed to enter into a reasonable repayment arrangement, or has failed to comply with such an arrangement. This is to be in line with cost effectiveness when recovering debts.

Staff must establish that the customer:

• failed to enter into a reasonable arrangement to repay their debt, or
• had an arrangement they did not keep

In some cases it is possible to apply a garnishee if the debtor:

• does not respond to contact to repay their debt, or
• failed to disclose information or evidence about their true capacity to repay their debt

The system treats other garnishee arrangements as a debtor not being in an acceptable recovery arrangement. Interest applies if at the time the Initial Interest Charge Notice is sent, the debtor is not in an acceptable recovery arrangement. For more details, see Interest Charge (IC) for Centrelink debtors no longer receiving payments.

Where an arrangement is in place, decisions about the arrangement not being reasonable must be made by Debt Staff who are APS5 or above. This decision must be documented on the file if garnishee action is taken.

Do not apply a garnishee action to superannuation.

Issue the notice with the customer's name on record, and other known names if:

• the third party recognises the customer by another name, and
• does not recognise the customers main name on the record

The References page contains details about Accountable Authority instructions (AAI).

Debts raised under the below acts cannot be recovered by garnishee:

• Public Governance, Performance and Accountability Act 2013 (PGPA) (under $10,000)
• Financial Management Administration (FMA) Act

Recovery of PGPA debts over $10,000 can be pursued under Common Law by the Litigation Team.