Debt from failure to comply with garnishee notice
(1) If a person (garnishee debtor): (a) is given a notice under section 264 in respect of a debt; and (b) fails to comply with the notice to the extent that the garnishee debtor is capable of complying with it; then the amount of the debt outstanding is recoverable from the garnishee debtor by the Commonwealth by: (c) legal proceedings in a court of competent jurisdiction; or (d) a garnishee notice under section 264. (2) The reference in subsection (1) to the amount of the debt outstanding is a reference to whichever is the lesser of: (a) as much of the amount required by the notice under section 264 to be paid by the garnishee debtor as the garnishee debtor was able to pay; or (b) as much of the debt due at the time when the notice was given as remains due from time to time. (3) If the Commonwealth recovers: (a) the whole or a part of the debt due by the garnishee debtor; or (b) the whole or a part of the debt due by the debtor (within the meaning of section 264); then: (c) both debts are reduced by the amount that the Commonwealth has so recovered; and (d) the amount specified in the notice under section 264 is taken to be reduced by the amount so recovered.
Sourced from the Federal Register of Legislation at 26 May 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au. Verify the current text against the official source before relying on it.
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