Garnishee customer does not agree with decision 107-05050080

Give the customer a detailed explanation of the decision to garnishee.

Do not end a garnishee because the customer does not agree with the decision.

Determine if the decision to apply the garnishee was correct, see Garnishees.

For Child Care Subsidy (CCS) debts, see Raising Child Care Subsidy CCS debts in Process Direct.

For all other debts, check the following:

• Key Dates (OPKD) screen to view system generated letters sent
• Document List (DL) screen for relevant documentation
• Arrangement List (OPAL) for previous repayment arrangements
• Archive Culling Engine (ACE) for relevant online debt DOC and details of manual/auto letters that may have been sent, and
• 'ATO Garnishee Summary' in Customer First workspace

There is no legal requirement to send a warning letter before applying a tax garnishee. However legislation requires the agency to provide a copy of the garnishee notice to the debtor. Do not withdraw a garnishee because a customer did not get a letter.

Incorrect ATO Receipt Date data

The Receipt Date field may display on the Repayment History (OPRH) screen. The customer's debt repayment history shows the agency received a garnishee payment before the garnishee was implemented. For example:

• 9 April 2010 - Garnishee notice sent to the ATO
• 6 April 2010 - 'Receipt Date' which appears on the OPRH screen

The correct receipt date of garnishee funds can be found in ESSentials.

Has the garnishee been correctly applied?

• Yes, go to Step 3
• No, go to Step 2

If the garnishee was not applied correctly, the decision should be changed and any withheld money refunded to the customer:

• cease the garnishee action
• record details on a DOC, and
• refund the garnishee amount to the customer. See Refunding debt repayments

Procedure ends here.

Make sure the customer understands that the decision to place a garnishee was legally correct.

If the customer has:

• requests a refund, go to Table 2
• does not request a refund, procedure ends here

Where a customer has sought a review of the garnishee decision, Debt Staff are able to do so under the authority of a Secretary initiated review.

The customer can provide new information to support a review of the garnishee decision, such as evidence of financial hardship or vulnerability.

See the Resources page for examples of when a refund may or may not be appropriate.

Discuss the following with the customer:

• why the customer has not engaged with the agency regarding repayment of their debt
• the amount they are seeking to refund, depending on their circumstances
• the customer’s circumstances to understand why ceasing or varying the garnishee may be appropriate. A customer should be given the opportunity to provide additional evidence, and it may be appropriate to request documentary evidence, if the customer’s verbal reasons are not sufficient or the customer has a history of requesting refunds
• if further evidence is requested, or the customer wishes to provide it, it must be provided within 14 days. Options to provide evidence include:
• Upload documents service
• postal address, or
• fax number
• the need for a temporary write off or a suitable payment arrangement for repaying the debt (and provide current employment details). If no arrangement is made, further recovery action may be taken

Note: if it is unclear if documentary evidence is required, refer to local leadership for support.

Can the garnishee decision be reviewed without further evidence?

• Yes, go to Step 5
• No:
• record the customer’s request using Fast Note - select Auto text, use Debt Recovery > Debt Recovery Referrals > Debt Recovery Refund Review. Place the Fast Note on hold for 15 days
• advise customer to provide further evidence within 14 days
• do not take further action until further evidence is received
• when the Fast Note becomes due or if evidence is received, go to Step 2

Has the customer returned the required evidence within 14 days?

• Yes, go to Step 4
• No, go to Step 3

Make genuine attempts to contact the customer.

Was customer contact successful?

• Yes:
• discuss the reason for the delay and decide if an extension should be granted. If an extension is granted, annotate and place the Fast Note on hold until the due date. Procedure ends here until the Fast Note becomes due or evidence is received
• if an extension is not granted, annotate the Fast Note outlining reasons why and complete the Fast Note, go to Step 6
• No, go to Step 6

Assessment of documentary evidence should be completed within 3 business days of receipt.

Determine if the circumstances of the customer make it unreasonable for the debt to have been recovered by garnishee. See the Resources page for examples.

After assessing the evidence, is there sufficient information to determine that the garnishee decision was not reasonable?

• Yes, go to Step 5
• No, go to Step 6

To refund all or part of garnishee amount, complete the following:

• cease or vary the garnishee arrangement
• negotiate an arrangement to repay any outstanding balance or apply a temporary write off due to short term hardship.
• employment details must be obtained
• obtain/confirm financial institution account details from the customer
• complete the refund, see Refunding debt repayments
• advise of the customer of future recovery obligations based on their circumstances
• record details of the outcome. Annotate the Debt Recovery Review Fast Note
• issue a Q053 Recovery decision letter that advises the customer of the outcome of the review and the refund amount. For a link to the approved Q053 Recovery decision letter, see the Resources page. Staff must include the relevant notice for ceasing or varying the garnishee in the same envelope. For:
• tax garnishees, use the approved Q053 Recovery decision letter
• all other garnishee types, see Varying or ceasing a garnishee notice to recover debts for the correct notice

If making a partial refund and the customer disagrees, and requests an explanation or applies for a formal review of the decision, see Initial contact about a decision and the review of decision process.

If the outcome of the review is a decision not to change the garnishee decision, advise the customer:

• it has been decided that they are not eligible for a refund
• their review and appeal rights,
• if the customer disagrees with the review outcome, see Initial contact about a decision and the review of decision process

In the customer’s record:

• record details of the outcome. Annotate the Debt Recovery Review Fast Note
• issue a Q053 Recovery decision letter that advises the customer of the outcome of the review. For the approved letter, see the Resources page

Procedure ends here.