A garnishee notice is an order the Australian Taxation Office issues to a third party of a tax debtor that may hold funds on their behalf. What a garnishee notice is, in simple terms, is the ATO seeking money from someone that has your money for you to pay off tax debts if you fail to do so yourself. Garnishee notices essentially allow the ATO to take money from a range of different sources on a one-off or ongoing notice.
The tax debts that apply in these circumstances include personal, and business debts and are generally the next step in debt recovery if you fail to pay what is owed. Garnishee notices may be issued to employers, your bank, insurers, people who owe you money for real estate sales, or companies in which you hold dividend returning shares. For businesses, notices may also apply to clients, suppliers, or trade debtors.