Document ID: chunk:federal_register_of_legislation:C2025C00156:section:129aeg:p1
Version: federal_register_of_legislation:C2025C00156
Segment Type: section
Provision Reference: s 129AEG (pt 1/2)
Character Range: 784229–786737

129AEG  Garnishee notices

Garnishee notice
 (1) If a recoverable amount referred to in paragraph 129AEF(1)(aaa), (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