Commonwealth Consolidated Acts Commonwealth Consolidated ActsGarnishee notice
(1) If a recoverable amount referred to in paragraph 129AEF(1)(a), (aa), (ab), (ac) or (c) is recoverable from a person (the debtor ), or from the estate of that person, the Chief Executive Medicare (the CEO ) may give a written notice (the garnishee notice ) to a person who owes, or may later owe, money to the debtor or estate.
(1A) However, subsection (1) applies in relation to a recoverable amount referred to in paragraph 129AEF(1)(a) that relates to an agreement entered into with the debtor under section 92 only if:
(a) both:
(i) an arrangement for the payment of the recoverable amount has been entered into between the CEO and the debtor or the estate within the relevant period mentioned in subsection (1B); and
(ii) there is a default (whether before or after the end of the relevant period) in the payment of all or part of the recoverable amount as required by the arrangement; or
(b) at the end of the relevant period, such an arrangement has not been entered into and all or part of the recoverable amount remains unpaid.
(1B) For the purposes of subsection (1A), the relevant period is:
(a) the period of 3 months beginning on the day the agreement under section 92 takes effect; or
(b) such longer period as the CEO allows.
When third party is taken to owe money
(2) A person (the third party ) is taken to owe money (the available money ) to the debtor or estate if the third party:
(a) is a person by whom the available money is due or accruing to the debtor or estate; or
(b) holds the money for, or on account of, the debtor or estate; or
(c) holds the money on account of some other person for payment to the debtor or estate; or
(d) has authority from some other person to pay the money to the debtor or estate.
(3) The third party is taken to owe the available money to the debtor or estate even if:
(a) the money is not due, or is not so held, or payable under the authority, unless a condition is fulfilled; and
(b) the condition has not been fulfilled.
How much is payable under the notice
(4) The garnishee notice must:
(a) require the third party to pay to the Commonwealth the lesser of, or a specified amount not exceeding the lesser of:
(i) the recoverable amount; or
(ii) the available money; or
(b) if there will be amounts of the available money from time to time--require the third party to pay to the Commonwealth a specified amount, or a specified percentage, of each amount of the money, until the recoverable amount is recovered.
When amount must be paid
(5) The garnishee notice must require the third party to pay an amount under paragraph (4)(a), or each amount under paragraph (4)(b), within the period specified in the notice.
Debtor must be notified
(6) The CEO must send a copy of the garnishee notice to the debtor or estate.
Setting off amounts
(7) If a person other than the third party has paid an amount to the Commonwealth that satisfies all or part of the recoverable amount:
(a) the CEO must notify the third party of that fact; and
(b) any amount that the third party is required to pay under the garnishee notice is reduced by that amount.
Indemnity
(8) If an amount is paid by the third party in accordance with the garnishee notice:
(a) the payment is taken to have been authorised by:
(i) the debtor or estate; and
(ii) any other person who is entitled to all or a part of the amount; and
(b) the third party is indemnified for the payment.
Garnishee notice to Commonwealth, State or Territory
(9) If the third party mentioned in subsection (2) is the Commonwealth, a State or a Territory, the CEO may give the garnishee notice to a person who is (as the case requires):
(a) employed by the Commonwealth, State or Territory; and
(b) required, or authorised, to disburse public money under a law of the Commonwealth, State or Territory.
Section binds the Crown
(10) This section binds the Crown in right of the Commonwealth, of each of the States, of the Australian Capital Territory and of the Northern Territory.
(11) However, this section does not make the Crown liable to be prosecuted for an offence.
(12) To avoid doubt, this section does not imply that the Crown is, or is not, bound by any other provision of this Act.
Review of decisions
(13) The debtor or estate may apply to the Administrative Review Tribunal for review of a decision by the CEO to give a garnishee notice to a person under subsection (1).