(a) a person (in this section called the garnishee debtor ) is given a notice under section 1233 in respect of a debt due by another person (in this section called the original debtor ) under this Act or Part 3B or 3D of the Administration Act; and
(b) the garnishee debtor fails to comply with the notice to the extent that he or she is 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 1233 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 part of the debt due by the garnishee debtor under subsection (1); or
(b) the whole or part of the debt due by the original debtor;
(c) both debts are reduced by the amount that the Commonwealth has so recovered; and
(d) the amount specified in the notice under section 1233 is to be taken to be reduced by the amount so recovered.
(3A) This section applies to an amount in spite of any law of a State or Territory (however expressed) under which the amount is inalienable.
(4) In this section, person includes:
(a) the Commonwealth; and
(b) a State; and
(c) a Territory; and
(d) any authority of the Commonwealth or of a State or Territory.