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The law states
Social Security Administration Act 1991 (Cth)
Section 60(1) of the Social Security Administration Act 1991 (Cth) (“the Commonwealth Act”) provides that:
Section 60(2) of the Commonwealth Act provides for a number of exceptions which apply to the collection of certain Commonwealth debts and therefore are not relevant to any consideration of a debt owing to an Financial Services Provider by a Centrelink recipient.
Legal action against a centrelink recipient ?
Legal action is certainly possible against a debtor receiving Centrelink and Judgment will be entered against them.
However action to recover is limited. As the debtor is not employed a garnishee against wages is not an option.
A bank garnishee is possible however only funds in excess of the Centrelink payment that are held in the account for a period are claimable . As most Centrelink receivers do not hold large balances in their accounts this is generally not successful.
A writ to take goods and property can be successful if debtor has goods of value to take.