Section 265 — Migration Act 1958: 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.