Varying or ceasing a garnishee notice to recover debts 107-05050060

Use the Debt recovery script, if possible.

If the script is unavailable, use the process below.

To action:

• an Employer request, go to Step 2
• a Customer request
• to cease, go to Step 4
• to vary, go to Step 6
• a Garnishee Customer Service/Appeal Fast Note or DMNMFU Activity, see Table 2

See Step 3 in Table 2 to cease a current garnishee if

• a new garnishee can be applied on a larger financial asset, and
• recovery action can occur within a shorter amount of time than the current garnishee

If the employer contacts to:

• advise the customer no longer works for them, go to Step 3
• respond to a message about a broken wage garnishee, see Actioning non-compliant and broken garnishee recovery arrangements
• confirm they received the garnishee notice, see Garnishee of continuing income to recover debts
• remit garnishee payments via EFT, see Garnishee of continuing income to recover debts

Procedure ends here.

If the customer is:

• not employed by the employer, cease the garnishee
• still employed but has not worked or will not work for a long time, the garnishee can be ceased

If they restart work in future, issue a new garnishee notice.

Obtain these details from the employer:

• date the customer last worked
• date the customer was last paid
• date the employer sent the last remittance
• if there are any further funds to remit, advise the employer to remit the funds
• if the customer is expected to return to work later
• name and contact number of the person giving the details

Transfer request to Garnishee team

Use Fast Note - select Auto text, use Debt Recovery > Debt Recovery Referrals > Garnishee Customer Service/Appeal. Include all details of discussions.

Transfer DOC to the Garnishee team.

Procedure ends here.

If the customer wants to cease the garnishee because they:

• have paid or will pay in full, go to Step 5
• are in financial hardship, go to Step 6
• have a pause/temporary write off in place for all outstanding debts, go to Step 3 in Table 2

There is no legal basis to cease a garnishee notice after it has been issued.

The garnishee cannot be ceased until the money has been received by Services Australia.

Make sure enough time has passed to allow for any dishonoured payments (cheques).

Has the agency received payment in full?

• Yes:
• advise the customer the garnishee will be ceased
• refer to the Garnishee team. Use Fast Note - select Auto text, use Debt Recovery > Debt Recovery Referrals > Garnishee Customer Service/Appeal
• No:
• advise the customer the garnishee cannot be ceased
• record details on a DOC

Procedure ends here

A financial assessment is needed when the customer asks to:

• cease the garnishee due to financial hardship
• reduce the instalment amount due to financial hardship

This includes when the debt balance reduces to change the acceptable amount.

To conduct a financial assessment, first engage in conversation with the customer to gather information about their circumstances.

After considering the information provided, if there is doubt about their circumstances, Specialised Debt Recovery staff may conduct a more detailed financial assessment. The customer may be asked to provide further details before a decision can be made.

Did the assessment support ceasing or varying the garnishee?

• Yes, refer to the Garnishee team. Use Fast Note - select Auto text, use Debt Recovery > Debt Recovery Referrals > Garnishee Customer Service/Appeal Fast Note. Include in the DOC:
• financial circumstance assessment details
• the proposed instalment amount
• reason for a more detailed financial assessment (where required)
• No, tell the customer the instalment amount cannot be varied. Record details on a DOC.

Procedure ends here.

If the customer's financial situation changes or they cannot afford the instalment amount:

• On the Garnishee Details (OPGD) screen, key these fields:
• the new Instalment Amount
• Notice Sent Date (today)
• Pay Start Date
• on the Assessment Finalisation (OPAF) screen, key 'Y' in the Finished? field. Press [Enter]
• Record details on a DOC. Explain the reason for the garnishee change. The summary line should read: Recovery: Vary Garn Instalmt
• Issue a Q588 'DRC rate of garnishee wages/income on review of Fin. Circ.' letter to the customer
• Issue a Q613 'DRC Vary garnishee and advice to debtor' letter to the person or organisation holding the garnishee notice. The Q613 also contains:
• a letter for the customer confirming the adjustment
• a copy of the letter sent to the third party for the customer's record

Send garnishee notices to the customer's last known address. This includes end-dated addresses.

Review

Do not accept a lower instalment amount for longer than 3 months without a review. Exception: customers identified as vulnerable or who have a serious medical condition.

The Q588 letter tells the customer when the amount will be reviewed.

Procedure ends here.

If the debt amount has changed, the customer and third party must be notified of the varied garnishee amount. For example, after a cash repayment, or recalculating the amount owing.

To vary the garnishee:

• On the Garnishee Details (OPGD) screen, key these fields:
• Comments (reason for ceasing)
• Cease Date (today's date)
• Select [Enter]
• Go to the Activity List (AL) screen. Key 'S' in the DMN/RCV activity, select [Enter]
• If no activity exists, go to the Payment Arrangement List (OPAL) screen
• Key 'GRN' (garnishee) in the Create new arrangement type field, select [Enter]
• Complete the Garnishee Details (OPGD) screen:
• Go to the Notice Amount field
• Key the new notice amount. This is the initial notice amount, plus or minus the adjustment. The Resources page has examples. If this amount exceeds the CRN balance, use the CRN balance
• Comments: key the new notice amount included in the Q613
• If the new notice amount exceeds the CRN balance, the amounts on theQ613 and the OPGD screen will differ:
  The Q613 shows the new notice amount (initial notice amount, plus or minus the adjustment)
  The OPGD screen shows the CRN balance. This is the most that can be keyed
• Key 'OPAF' in Nxt field and select [Enter]
• Key 'Y' in the Finished? field. Select [Enter]
• Record all details on a DOC. Clearly explain the reason for the garnishee variation. The summary line should read: Recovery: Vary Garn Amount
• Issue a Q613 'DRC Vary garnishee and advice to debtor' letter to the person or organisation holding the garnishee notice. The Q613 also contains:
• a letter for the customer verifying the notice amount has been varied
• a copy of the letter sent to the third party for the customers records
• Before sending, check the notices have printed with the correct amounts

Send garnishee notices to the last known address of the customer.

Procedure ends here.

If the customer paid their debt in full or intends to, until the funds are received, do not:

• cease the garnishee, or
• send a 'DRC - Cease garnishee and advise customer' (Q614) letter

Cease a garnishee when:

• the customer no longer has a recoverable debt. For example, after a review or payment in full
• the garnishee was applied incorrectly
• there is an agreement to stop deductions for a time due to financial hardship
• the employer confirmed the customer is no longer employed
• the customer starts receiving a Centrelink payment
• another garnishee can be placed on a larger asset
• recovery of all of the customer’s debts has been paused

To cease a garnishee:

• where another garnishee can be placed on a larger asset, go to Step 5
• where recovery of all of the customer’s debts has been paused, go to Step 5
• for all other cases, go to Step 4

If necessary, contact the employer. Confirm they have sent all garnishee funds to Services Australia.

Have all garnishee funds been received?

• Yes, the third party can pay the customer any garnishee funds they are holding. Go to Step 5
• No, do not cease the garnishee until the funds have been received. Either:
• Update the Pay Start Date field on the Garnishee Details (OPGD) screen (do not end) to the expected final payment date, or
• Resubmit the garnishee activity on the Activity List (AL) screen for 2 days after the expected final payment date
• Procedure ends here (after final payment is received)

• On the Garnishee Details (OPGD) screen, key these fields:
• Comments (reason for ceasing)
• Cease Date (today's date)
• Select [Enter]
• Record all details on a DOC. Explain the reason for the garnishee change. The summary line should read: Recovery Garn Ceased
• Issue a Q614 'DRC - Cease garnishee and advise customer' letter to the person or organisation holding the garnishee notice. The Q614 also contains:
• a letter for the customer verifying that the garnishee has ceased
• a copy of the letter sent to the third party for the customer's records
• Always send a Q614 unless the employer advises they do not require one. Record all details on a DOC

Was the garnishee ceased so another garnishee notice can be placed on a larger asset?

• Yes, issue a new garnishee notice, see Garnishees. Record all details on a DOC. Procedural ends here
• No, go to Step 6

Is there is an outstanding balance?

• Yes:
• code details. For example, write off, arrangement or pause
• consider a new recovery arrangement or further recovery action. See Debt recovery for Centrelink
• No, procedure ends here