Section 1230A — Social Security Act 1991: Debt from failure before 1 July 1991 to comply with garnishee notice under the 1947 Act

(1) If: (a) a person (in this section called the garnishee debtor) was given a notice under section 162 of the 1947 Act in respect of a debt due by another person (in this section called the original debtor) under the 1947 Act; and (b) the garnishee debtor failed to comply with the notice before 1 July 1991 to the extent that he or she was capable of complying with it; then the amount of the debt outstanding (worked out under subsection (2)) is recoverable from the garnishee debtor by the Commonwealth by means of: (c) legal proceedings; or (d) garnishee notice. Note 1: For legal proceedings see section 1232. Note 2: For garnishee notice see section 1233. (2) The amount of the debt outstanding is the amount equal to: (a) as much of the amount required by the notice under section 162 of the 1947 Act to be paid by the garnishee debtor as the garnishee debtor was able to pay; or (b) as much of the debt due by the original debtor at the time when the notice was given as remains due from time to time; whichever is the lesser. (3) If the Commonwealth recovers: (a) the whole or a part of the debt due by the garnishee debtor under subsection (1); or (b) the whole or a part of the debt due by the original debtor; 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 162 of the 1947 Act is to be taken to be reduced by the amount so recovered. (4) A reference in subsection (3) to the Commonwealth recovering the whole or a part of a debt includes a reference to the Commonwealth recovering, under the 1947 Act, the whole or a part of the debt. (5) In this section: person includes: (a) the Commonwealth; and (b) a State; and (c) a Territory; and (d) any authority of the Commonwealth, a State or Territory.