Document ID: chunk:federal_register_of_legislation:C2018A00064:clause:3_129aeg:p1
Version: federal_register_of_legislation:C2018A00064
Segment Type: clause
Provision Reference: sch 3 cl 129AEG (pt 1/2)
Character Range: 38352–40823

129AEG  Garnishee notices

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

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