Garnishee orders in NSW: Enforcing a judgment efficiently

You’ve obtained a court judgment for an unpaid debt—but the debtor still won’t pay. A garnishee order lets you bypass the debtor entirely and recover directly from their bank account, wages, or anyone who owes them money. It’s one of the most efficient enforcement tools available in NSW. This guide explains how garnishee orders work, the step-by-step application process, current protected amounts, and when to use them.

What is a garnishee order?

A garnishee order is a court order that compels a third party—called the ‘garnishee’—to pay money they hold for, or owe to, your debtor directly to you instead. The order is issued under section 106 of the Civil Procedure Act 2005 (NSW) and governed by Part 39 of the Uniform Civil Procedure Rules 2005 (UCPR).

Think of it as intercepting money at the source. Instead of chasing the debtor for payment, you direct the bank to hand over funds from their account, or instruct their employer to deduct wages and pay you. The debtor often doesn’t know about the order until the money has already gone.

Typical garnishees include:

• Banks and financial institutions holding the debtor’s funds
• Employers who pay the debtor’s wages or salary
• Real estate agents collecting rent on behalf of the debtor
• Customers or clients who owe the debtor money

Two types of garnishee orders in NSW

NSW courts issue two main types of garnishee orders, each suited to different situations:

What you need before applying

Before you can apply for a garnishee order, you’ll need:

1. A court judgment — The court (or tribunal) must have already ordered the debtor to pay you.
2. The 28-day period to have passed — Debtors typically have 28 days to pay a judgment before enforcement can commence.
3. Information about the garnishee — You need to know where the money is: the debtor’s bank and account details, their employer’s name and address, or details of third parties who owe them money.
4. Reasonable grounds — Your affidavit must establish a reasonable basis for believing the garnishee holds an account or owes money to the debtor (UCPR rule 39.35).

Finding the debtor’s financial information

If you don’t know where the debtor banks or works, you can use an examination notice (UCPR rule 38.1). This requires the debtor to attend court and answer questions under oath about their income, expenses, bank accounts, and assets. It’s often the essential first step before pursuing garnishee orders.

Step-by-step: How to apply for a garnishee order

The process is straightforward, and there’s no filing fee in NSW for garnishee applications:

Step 1: Complete Form 69 (Notice of Motion) — This form contains your affidavit in support. You’ll need your case number, the judgment date and amount, the garnishee’s name and address, and the grounds for believing they hold the debtor’s money. The affidavit must be sworn before a Justice of the Peace or lawyer no more than 14 days before filing.

Step 2: Complete Form 70 or 71 — Use Form 70 for a garnishee order for debts (banks, third parties). Use Form 71 for a garnishee order for wages or salary (employers).

Step 3: File at the Local Court — File the forms at the same Local Court where the statement of claim was originally filed, or use the NSW Online Registry. File an original plus two copies. There is no filing fee.

Step 4: Serve the sealed order on the garnishee — Once the court stamps (seals) your order, serve a copy on the garnishee (not the debtor). For banks, contact them first to obtain their correct address for service of legal documents—it’s different from the branch address.

Step 5: Payment within 14 days — Under section 118 of the Civil Procedure Act, the garnishee must generally pay within 14 days of service. For wages, deductions continue each pay period until the debt is paid.

Protected amounts and limitations

The law ensures debtors retain enough to live on. As at October 2025, the protected ‘weekly compensation amount’ under section 118A of the Civil Procedure Act is $612.60 per week. This amount is adjusted in April and October each year—check the Local Court website for current figures.

For wage garnishees

The employer can only deduct amounts that leave the debtor with at least $612.60 per week (net). The employer may also deduct up to $13 for administration expenses.

For bank account garnishees

The bank must leave the debtor with at least the minimum balance plus $20 (currently $632.60). If the account holds less than this threshold, the bank doesn’t have to comply with the order. Banks may also deduct up to $13 for administration. Centrelink payments in the account may receive additional protection.

What if funds are insufficient?

If one garnishee order doesn’t recover the full debt, you can apply for additional orders against other accounts, employers, or third parties. You can continue issuing orders until the judgment debt is satisfied—enforcement remains available for 12 years from the date of judgment in NSW.

What if the garnishee doesn’t pay?

Garnishees have a legal obligation to comply. If they fail to do so, the court may enter judgment against the garnishee directly for the amount of the debt (or the amount they held). This makes garnishee orders a powerful tool—banks and employers rarely risk non-compliance.

If the garnishee believes no debt is owed or no funds are held, they can serve a statement to that effect on you, setting out their reasons.

When to use a garnishee order

Garnishee orders work best when:

• You know where the debtor’s money is (bank details, employer, receivables)
• The debtor has regular income or funds that exceed protected amounts
• You want to recover quickly without further court hearings
• The debtor is ignoring your demands but is clearly solvent

Consider alternatives like a writ for the levy of property if the debtor has physical assets but limited cash, or a statutory demand if the debtor is a company and you want to leverage the threat of winding up.

Key takeaways

• ✓ A garnishee order bypasses the debtor—you recover directly from their bank, employer, or anyone who owes them money
• ✓ You must have a court judgment first and wait 28 days before enforcing
• ✓ There’s no filing fee for garnishee orders in NSW
• ✓ Use Form 70 for debts (banks, third parties) or Form 71 for wages
• ✓ The protected weekly amount is $612.60 (as at October 2025)—verify current rates
• ✓ You can issue multiple garnishee orders until the judgment debt is satisfied
• ✓ Judgment debts can be enforced for up to 12 years in NSW