ATO recovery powers – are your house sale proceeds at risk?

A garnishee order is a form of enforcement action that can be used for the recovery of debts. It can be served on a third party who owes money to the debtor, directing the third party to pay that money to the entity that issued the garnishee notice, rather than the debtor.

Ordinarily, a court-ordered judgment is required before a garnishee order can be made. However, the ATO can issue a garnishee notice in relation to outstanding tax debts without a court judgment being entered, against any person or business who owes money to the tax debtor or holds money on their behalf. (more…)

Retention of title clauses under the Personal Property Securities Act

In Central Cleaning Supplies (Aust) Pty Ltd v Elkerton [2015] VSC 92, the Victorian Court of Appeal upheld an appeal and confirmed that a supplier was protected by the transitional provisions under the Personal Property Securities Act 2009 (Cth) (PPSA).

The matter highlights the need to review supply agreements and register any security interests under the PPSA. (more…)