(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.