Boston Commercial Services Pty Ltd (ABN 87 114 658 070) CAPI Licence Number 409 456 759

You are here: Home / News / All You Need To Know About Garnishee Orders

All You Need To Know About Garnishee Orders

One of the most challenging parts of a business is dealing with debt. Whether it is money you owe or are owed, many people prefer to avoid the topic of debt. Nevertheless, if you plan to keep your business afloat, you need to be familiar with all the debt recovery options available to you. One of the most effective methods of debt recovery, Australia is the use of Garnishee Orders.


What is a Garnishee Order?

A garnishee order is a legal avenue pursued by a creditor who has exhausted all other credible methods of recovering a debt. Garnishees orders bypass the debtor and are issued directly to a Garnishee, a third party that provides the debtor with funds for various reasons.

In simple terms, a Garnishee Order legally requires a third party (Garnishee) to direct funds from your debtor’s salary, bank accounts or his outstanding debtors to pay what he owes you.

The Garnishee can be the debtor’s bank, employer, tenants, clients, trade debtors, or any other institution holding money for the debtor.


How Garnishee Orders Work

While garnishee orders are generally used all over Australia, the terms and conditions about how they are obtained and enforced vary from one state to another. The two main types of garnishee orders issued in Australia are listed below.

  1. Garnishee orders issued to employers for wages or salary
  2. Garnishee orders for debts issued to people or institutions that handle the debtor’s money such as banks, tenants and others.

The most significant differences in the enforcement of garnishee orders from one state to another are related to each state’s financial safeguards for its residents. Each state sets conditions on the amount of money a garnishee can redirect from a debtor’s funds so that the debtor can continue to meet his minimum living expenses while the debt is being settled.


Garnishee Orders in New South Wales

In New South Wales, the creditor is only required to send a copy of the garnishee order to the garnishee and not to the debtor. Here are some of the unique conditions of honouring a garnishee order in NSW.

Garnishee Orders for Wages or Salary in NSW

  • The garnishee s obligated to leave the debtor with a minimum amount of funds for living expenses. In October 2018, this amount was set as $504.60 per week.
  • The garnishee’s administrations expenses are deducted from the money owed to you and are capped at a maximum of $13.00.
  • The debtor can apply for the debt to be paid in instalments.

Garnishee Order for Debts in NSW

  • The garnishee is required to leave a minimum balance ($504.60) plus $20.00 in the debtor’s account and cannot comply with the garnishee order if the debtor’s balance is below this amount.
  • The garnishee’s administrations expenses are deducted from the money owed to you and are capped at a maximum of $13.00.
  • The garnishee can pay the debt as a lump sum unless the debtor applies to the court to pay by instalments
  • The debtors Centrelink benefits are protected from the garnishee order.


Garnishee Orders in Queensland

Garnishee orders in Queensland and New South Wales have several similarities but also significant differences. For starters, a garnishee order for in QLD debts is referred to as a warrant for redirection from financial institutions, while a garnishee order for wages or salary is known as a warrant of redirection of earnings.

Moreover, creditors in Queensland are required to prove to the registrar, that the debtor can afford the redirection of funds without experiencing unreasonable hardship.

Additionally, the creditor is required to provide both the garnishee and debtor with a copy of the enforcement warrant.

Warrant of redirection of earnings

  • The warrant only comes into force seven days after it has been served to the employer
  • In addition to the warrant, you need to serve the debtor’s employer with Form 79 (Notice to the employer for reduction of earnings) and Form 80 (Notice that debtor is not an employee)

Warrant of redirection from financial institutions

  • The warrant must include a specific endorsement that protects the debtor’s Centrelink benefits or government pension from being used when the garnishee is settling the debt.
  • The debtor or creditor can apply to the court to have the warrant discarded or varied

Boston Commercial Services specialise in Garnishee orders. Talk to our experts for your Debt Recovery, Legal Services and Finance Solutions needs.


Read Also:

Get In Touch

Get an obligation free assessment now


Get in touch with us

Talk to our experts in Debt Recovery, Legal Services and Finance Solutions

realclicks 12:00 pm
  • I have worked closely with Boston Commercial Services for over twenty years across four different companies and would not work with anyone else in regards to helping me with my outstanding accounts. Whenever I have started a new role, the first thing I am asked is, “How would you go about cleaning up our accounts receivable ledger?” My answer is always the same – “The first thing we need to do is call Boston Commercial Services”.

    Voytek Bradford

    Freedom Foods Group Limited (National Credit Manager)

  • I have known the principal of the BOSTON Group (Derryn HARRISON) as well as key staff members (including Ben GOWER) for well over 2 decades and have been using their professional services for myself as well as for Powerhouse Logistics Pty. Ltd. on a regular basis, not only in Sydney but on a national basis.

    At all times BOSTON have been extremely pro-active, attentive, courteous and professional with all matters we threw at them. Their advice has always been extremely sound and commercial and I find them to be a "breath of fresh air" within the legal fraternity and have no hesitation whatsoever to highly recommend them.

    Peter Brueckner

    Powerhouse Logistics Pty Ltd (CEO)

  • Expect A Star has worked with The Boston Group for 10 years. In this time we have appreciated the ongoing support of Boston for all of our collection and legal requirements. Like most businesses cashflow is critical to ongoing success and growth, with Boston we have found a partner who are an extension of our business and play a key part in our cashflow management. The Boston Group bring a level of expertise to our business which is valuable and coupled with their excellent customer service we look forward to continuing to work with them for many years to come.

    Ryan Meldrum

    Former CEO

  • I have been using the services of The Boston Group and their legal entity for over 11 years. During this time I have found their service to be impeccable, delivered with the utmost professionalism and integrity. The vast majority of cases that I have placed with Boston were far from straightforward, requiring legal acumen and delicate handling. Having used all methods available without success to procure payment, I confidently placed these matters into their safe hands. In all instances a successful outcome was achieved.

    Mark Parish

    Credit Manager

  • SNP Security has had the pleasure of working with Boston Commercial Services for the past 11 years. Boston has played an integral part in the continuing success of SNP Security’s low DSO’s, 90 Day % Debt & of course Bad Debts Written Off.

    Amanda Griffiths

    National Administration Manager

Boston Commercial Services prides itself in offering specialised, professional services, through a highly experienced team of debt collector, with personalised client attention.