3.6.6 Garnishee notices

Centrelink is able to garnishee The holding back of a part of compensation from a worker who is indebted to the Commonwealth. money due from a worker who is indebted to the Commonwealth on behalf of a third party or held by a third party.

Garnishee notices specify the amount of money to be paid to Centrelink.

Centrelink may request a:

  • single lump sum payment which recovers the whole debt or
  • specific amount or percentage to be sent on a weekly basis.

Note: Recovery by lump sum can be made from any lump sum payment an Agent is making and is not restricted to the lump sum types.

Payments made within 14 days

Money must be withheld in accordance with the Garnishee Notice A Garnishee Notice is issued to the WorkSafe/Agent where a worker has a debt to the Commonwealth (other than a debt arising directly from the worker’s compensation payments) and advises the amount of money to be remitted to Centrelink on behalf of a worker. as soon as it is received. However, the money does not need to be sent to Centrelink until 14 days after it has been withheld or 14 days after the notice was received, whichever is later.

Periodic garnishee payments

The Agent action required when a Garnishee Notice which specifies a weekly payment is received depends on whether the worker is a direct payee.

If the worker is:

  • a direct payee, the Agent deducts the specified amount on a weekly basis using the procedures outlined in When a Centrelink Recovery Notice is received as a guide and ensuring the Customer Reference Number listed on the Garnishee Notice is recorded.
  • being paid weekly payments by their employer the Agent returns the Garnishee Notice to Centrelink, advising that the employer is making the compensation payments. Centrelink will redirect the Garnishee Notice to the employer concerned.

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