Garnishee customer does not agree with decision 107-05050080

Item

Description

1

Review outcome determines refund of a garnishee amount is appropriate

Sally contacts Services Australia to request a refund of the tax garnishee, due to being retrenched. Sally has started work again but has not got any pay yet. Sally:

• is paying rent of $400 per week
• has a nil balance in bank accounts
• does not have private medical/hospital coverage
• has an 8 year old child with a critical medical condition which has just been diagnosed and needs immediate surgery
• was waiting on their tax refund to pay for the surgery which will cost $2,500

In this case, new information is available to determine that the customer may have been eligible for a short term hardship write off. As a result of the review, it was determined that the garnishee should be revoked based on the customer’s circumstances. As a result, Sally would be entitled to a full refund.

2

Review outcome determines partial refund of garnishee amount is appropriate

Robert contacts Services Australia to request a refund of the bank garnishee, due to being in financial hardship. Robert has employment however is experiencing hardship due to needing to relocate to care for an ill relative.

Robert:

• is paying rent of $500 per week
• has employment income of $750 per week
• has general expenses of $250 dollars per week
• has outstanding bills
• had saved $4,000 to relocate to care for the ill relative
• has a nil balance in bank accounts after the garnishee action and general expenses
• has an ill relative to care for in another state
• is seeking a refund of the full balance to assist with the relocation cost and is not eligible for any other government assistance
• was not aware of the debt due to moving and failing to update Services Australia with their most recent address / phone number.

In this case, new information is available to determine that the customer may be experiencing vulnerability or extenuating circumstances which may affect the decision in determining the amount for garnishee. As a result of the review, it was determined that the garnishee notice should be varied and amount reduced based on the customer’s circumstances. As a result, Robert would be entitled to a partial refund.

3

Review outcome determines refund of garnishee amount is not appropriate

Johnny contacts Services Australia to request a refund of the tax garnishee. Johnny:

• had their tax return garnisheed to recover an outstanding debt of $3,500
• has contacted the agency and explains the tax refund was to be used as spending money for a holiday
• explains they are now in financial hardship as they do not have spending money for the trip
• wants a refund of the money garnisheed from the tax refund

After investigating the record, it is identified that:

• the current contact details are correct
• Johnny is aware of the debt, and
• there is a history of not honouring past repayment arrangements

As a result of the review, it was determined that no new information was available to support a change in the garnishee decision as the customer was not experiencing vulnerability or extenuating circumstances and is therefore not eligible for a refund.