Garnishee of continuing income to recover debts 107-05050010

Use the Debt recovery script when actioning a file. The below procedure is to be followed even if the script is unavailable.

Follow steps in Garnishees to make sure garnishee action is appropriate.

For:

• an inbound call, go to Step 2
• considering a garnishee, see Step 1 in Table 2
• documenting returned correspondence, see Step 6 in Table 2
• implementing a garnishee, see Step 1 in Table 3

Is the inbound contact from a customer or employer?

• Customer, go to Step 3
• Employer, go to Step 4

Has the wage garnishee already been implemented?

• Yes, see Varying or ceasing a garnishee notice to recover debts
• No, see Managing recovery and non-recovery of Centrelink debts

If the employer:

• advises a customer, whose continuing income is being garnisheed, is no longer employed by them, see Varying or ceasing a garnishee notice to recover debts
• is calling in response to a message left as a result of a broken wage garnishee, see Actioning non-compliant and broken garnishee recovery arrangements
• contacts after receipt of the garnishee notice, go to Step 5

Check the Garnishee Details (OPGD) screen and:

• update the Acknowledgement Date field to today's date
• confirm and update the Pay Start Date
• confirm and update the Frequency the employer will be remitting. Remember change in Frequency also results in a change to the Instalment. That is, $50 per week changes to $100 per fortnight
• record details on a DOC

Does the employer intend to remit via EFT?

• Yes, go to Step 6
• No, procedure ends here

Warm transfer the call to the Debt Finance Team (Office Code 'NDR').

Where a call cannot be taken, send an email to the Debt Finance Team. The email must have 'EFT REQUEST' in the subject line and include the following details:

• Customer(s) CRN, name and environment
• Company name
• Contact person and phone number, including the area code
• Employer's fax number
• Any other relevant information, such as days or times to contact
• Debt ID (for Paid Parental Leave (PPL) employers)
• The sender's name and phone number

Record details on a DOC. Procedure ends here.

To determine if there is a viable employment lead, take into account:

• the date the information was provided or obtained
• privacy, only use debt recovery data matches for recovery purposes. For example, DBM Tax Declaration Form (TDF) matches
• Single Touch Payroll (STP) debt recovery data match
• any new claims for Income Support payment, with associated employer separation certificate indicating employment has ceased
• that the information relates to the customer and not the partner

Is there a viable employment lead?

• Yes, go to Step 2
• No, do not proceed with garnishee action. Close the referral Fast Note, record details on a DOC. Procedure ends here

If the employment details have been located from a data match advise the customer of the date match before:

• taking administrative action, or
• checking the information with a third party

Was the employer located from a data match?

• Yes. For:
• Tax Declaration Form (TDF) debtor matching reviews, see  Tax File Number Declaration Form (TDF) Debtor matching reviews
• Single Touch Payroll (STP) data matches, see Single Touch Payroll debt recovery data match
• No, go to Step 3

If employment details have been confirmed via a Q609 within the last 90 days, there is no need to issue another. Garnishee action can proceed with this employer based on the information held.

Note: if a customer has changed employers, issue a Q609 to the new employer. Do not use a returned Q609 from a previous employer to place a garnishee with the new employer.

Has the customer's current employment been confirmed within the last 90 days?

• Yes, go to Step 6
• No, go to Step 4

To request employment details:

• confirm the employers correct mailing address
• send a Q609 letter
• annotate the DOC with the details and close
• resubmit the DMN/RCV activity for 15 days
• when the resubmit date is due, go to Step 5

Note: the use of email to send and receive garnishee correspondence to employers should only be completed through the use of PGP secure webmail. See General Centrelink debt recovery information.

Has the employer returned a completed Q609?

• Yes, go to Step 6
• No, contact payroll to discuss why the information has not been provided. Check the following:
• Was the request sent to the correct address?
• Is the customer known by any other name?
• Does a second notice need to be issued?
• When can a response be expected?
• Annotate the original DOC with the details
• Where further time to response is requested, resubmit the DMN/RCV activity accordingly
• When the resubmit/review date is due or the information arrives, go to Step 7

DOCument the details of the returned Q609.

If the customers contact details are different to what is on the customers file, consider:

• the reliability of the details, and
• if it is appropriate to attempt contact with the customer through the new details

Note: do not use details from an employer's returned questionnaire to update a person's record. Confirm these details with the customer before updating their file.

Have reliable and appropriate contact details been provided by the employer?

• Yes, attempt to contact the customer using this information, see Outbound customer contact and gathering information when recovering debts
• No, go to Step 7

Is the customer's employment likely to continue?

• Yes, see Step 1 in Table 3
• No, do not proceed with a garnishee. Record details on a DOC and close the referral Fast Note. Procedure ends here

Has the customer been warned verbally or in writing of the possibility of a wage garnishee in the last 90 days?

See the Resources page of Garnishees for recovery action warnings.

• Yes, go to Step 2
• No, send a contact letter with final option (Q190) to the customer. Resubmit any activity and/or Fast Note for 23 days

The garnishee instalment rate is the amount deducted from the customer's wages to pay the debt.

Consider arrangements agreed to within the past 3 months. If the customer's situation has not changed, do not exceed the agreed amount.

A garnishee is not appropriate for customers who had a negative excess from a financial circumstances assessment within the last 3 months.

Did the customer have an agreed payment arrangement that met acceptable cash levels within the last 3 months?

• Yes, set the garnishee instalment rate at the previously agreed rate, go to Step 4
• No, go to Step 3

An ongoing wage garnishee instalment rate applies when there is no agreed arrangement within the past 3 months.

For Single Touch Payroll (STP) data matches, set the wage garnishee instalment rate at 10% of gross income amount.

For all other garnishees the ongoing wage garnishee instalment rate aligns with the current acceptable cash levels and apply as follows:

• for Family Assistance debts:
• under $1500, greater of 10% of gross income or acceptable cash level (for example, $30 or $60 fortnight)
• over $1500, 10% of gross income only
• for all other debts:
• greater of 10% of gross income or acceptable cash level for example, $30, $60 or $100 fortnight)

Once the instalment rate has been determined, go to Step 4.

The Resources page contains examples.

Go to the Debt List (OPDL) to find out which debts can be included in the garnishee notice amount. Take into account:

• interest accrued and yet to be applied to the outstanding debt, manually update the interest charge to ensure the garnishee notice reflects the correct debt amount, see Viewing and updating Interest Charge (IC) via Financial Customer Care in Customer First
• debts due and payable. Note: if there are additional debts on the record that fall due within the next 28 days, Hold the activity until all debts are due
• Public Governance Performance and Accountability Act debts cannot be included
• debts under Bankruptcy or Part IX cannot be included
• debts written off under Non-lodger separated (NLS) couple provisions cannot be included

Once the notice amount has been determined, go to Step 5.

The Resources page has examples.

Use the Debt Recovery script to code the garnishee arrangement.

The script will ask ‘OLAs: do you want the script to pause to allow the checking of the Q439 garnishee letter before printing?’ when coding a wage garnishee. Select ‘Y’. Check the garnishee letter and select the correct appeals clause.

Always check the contents of the letter.

Note: the Q439 letter must be printed locally.

If the script is not available, the following details will help to manually code a garnishee:

• go to the Activity List (AL) screen, and key 'S' in the DMN/RCV activity > [Enter]
• if there is no DMN/RCV activity on AL, go to the Payment Arrangement List (OPAL) screen > [Enter]
• in the Create new arrangement type field, key 'GRN' (for garnishee) > [Enter]

Go to the OPGD screen:

• Notice Amount, defaults to the outstanding balance total on the Debt List (OPDL). Deduct any debts that are not recoverable
• Instalment Amount, enter the garnishee instalment rate determined in Step 2 or 3
• Type, WSA
• Pay start date, must be at least 15 days from the day the notice is issued. Allow an additional 8 calendar days if sending the notice via post. The pay start date cannot be before money is held or due to the customer
• Frequency, set the frequency in line with the customers pay cycle. That is, weekly, fortnightly etc.
• Acknowledgement date, leave blank
• Garnishee Name, This must be the legal name of the organisation on which the garnishee order has been placed. Do not use the trading name
• Garnishee Debt ID, leave blank unless there are multiple debts and the garnishee is to be restricted to one Debt ID
• Comments, note any relevant details for example, customer alias, employee ID number
• use field help ('?') to record the details for all other fields
• do not press [Enter] when coding is complete. Instead, press the [Home] key and in the Nxt field, key 'LD' > [Enter]

Produce the Periodic Garnishee & advice to debtor (Q439) letter to the employer and customer. In the:

• Letter Code field, key 'Q439' > [Enter]
• Service Reason field, key 'DMN' > [Enter]

Complete the letter and make sure the notice amount, instalment amount and frequency are the same as OPGD.

Note: send the customer a copy/copies of garnishee notices to the last known address of the customer. Do not send garnishee notices to an end-dated address on the customer’s record.

Do not finalise the letter.

Does the employer being issued with the garnishee notice recognise the customer by another name or alias?

• Yes, go to Step 9
• No, go to Step 10

If the garnishee employer knows the customer by another name, issue the notice in the customer's name as well as the other known name or alias.

Only include a customer's alias on a notice when the employer advises they do not know the customer by the main name on the customer's record.

To add the customer's alias, in the:

• Command field, key 'DATA', and
• Client.Full.Name field (after the customer's name), key the customer's alias

Record the customer's alias in the Comments field on the Garnishee Details (OPGD) screen.

If the Customer Person Detail Summary (CPDS) screen does not display the other name the customer is known by, update CPDS. Record the source of these details on a DOC.

For example, 'Confirmation from ABC Pty Ltd received that Judy Citizen is also known as Judy Resident - CPDS updated'. See Aliases and other names (legal, preferred, sex and gender diverse customers, cultural considerations etc.).

When the letter is complete, in the:

• Nxt field, key 'OPAF' > [Enter]
• Finished? field, key 'Y' > [Enter]

Record details on a DOC. Explain the garnishee reason clearly. The summary line should commence, ‘Recovery: New Garnishee’.