A garnishee notice is issued by the government agency (such as Centrelink or the ATO) to a third party that holds money for you or owes you money. To take money from your bank account, your bank would be issued with the garnishee notice requiring it to pay 'your money' to the requesting agency to satisfy the debt.
In certain circumstances, the ATO will freeze your bank account or other personal assets if they think you are at a high risk of default. One of the reasons why the ATO exists is to help the Federal Government collecting money from taxpayers.
If you are in debt to the ATO, you may be issued with a garnishee notice on your bank accounts with a demand to pay the ATO within a specified amount of time. Failure to do so can result in your bank accounts being frozen and a suspension on your trading accounts.
Keep in mind that Centrelink does not have the authority to take money out of your account. You will typically be given written notice to repay any debt. However, your benefits could be reduced until you've paid back what you owe.
If you hold deposits with the same licensed banking institution that are over the $250,000 FCS limit, the excess amount over $250,000 will not be protected under the FCS but may be claimed in any subsequent liquidation process. For further information on the liquidation process go to the Banking FAQs.
There are no laws limiting the amount of cash you can keep at home. This makes sense as many businesses, especially retail stores, keep large amounts of money with them merely as floating cash.
There is no maximum limit, but your checking account balance is only FDIC insured up to $250,000. However, as we'll cover shortly, it makes sense to put extra cash somewhere it will earn interest.
Six Year Limitation Period
For most debts, a creditor must begin court action to recover the debt within six years of the date you: Last made a payment. Admitted in writing that you owe the money.
The only time a bank can withdraw money without your permission is if you've defaulted on one of its loan products (such as a car loan) and you also have a checking account, savings account, or certificate of deposit (CD) with the same institution.
WILL ACCESSING MY SUPER AFFECT MY CENTRELINK PAYMENT? If you withdraw money from your super fund, you must tell Centrelink within 14 days. Money withdrawn from super is not treated as income for a person receiving a social security payment.
Your Australian bank account statements are accessible to the ATO. The ATO is endowed with extensive legal authority, which allows it to access your personal bank information. Because of these capabilities, the ATO is able to get your Australian bank statements straight from your financial institution.
How to get your money back. If you find something wrong, contact your bank as soon as possible. The sooner you contact your bank, the more likely you are to get your money back — and if the transaction is unauthorised, the sooner the bank can stop any further transactions.
You and the bank are the only two able to see your bank information unless you grant access to a third party.
There are some instances when the government can take money from your bank account. This generally occurs in situations where you have an outstanding government debt. Before it can take money from your bank account, the government authority owed money would first need to issue a garnishee notice.
Are my savings safe? Mr Boey says while there's minimal risk of any Australian banks collapsing, savings up to a certain point are protected. Deposits up to $250,000 are protected by a government-backed safety net called the Financial Claims Scheme.
Just remember that ATM and EFTPOS withdrawals have a limit of $1,000.
Give your bank a "stop payment order"
Even if you have not revoked your authorization with the company, you can stop an automatic payment from being charged to your account by giving your bank a "stop payment order" . This instructs your bank to stop allowing the company to take payments from your account.
A cash deposit of more than $10,000 into your bank account requires special handling. The IRS requires banks and businesses to file Form 8300, the Currency Transaction Report, if they receive cash payments over $10,000. Depositing more than $10,000 will not result in immediate questioning from authorities, however.
Can bank employees see your accounts? Bank tellers can see your checking and savings accounts as well as money paid toward loans. They can also move money around your different accounts at your request.
The people you owe money to (your creditors) have a right to get it back. But it's not okay to harass or bully you. If you receive a notice about being taken to court, get free legal advice straight away. If you ignore it, you risk your goods being repossessed and sold.
Debts you're not responsible for
You might not have to pay a debt if: it's been six years or more since you made a payment or were in contact with the creditor.
A debt doesn't generally expire or disappear until its paid, but in many states, there may be a time limit on how long creditors or debt collectors can use legal action to collect a debt.
Unless your bank has set a withdrawal limit of its own, you are free to take as much out of your bank account as you would like. It is, after all, your money. Here's the catch: If you withdraw $10,000 or more, it will trigger federal reporting requirements.
If you plan to deposit a large amount of cash, it may need to be reported to the government. Banks must report cash deposits totaling more than $10,000. Business owners are also responsible for reporting large cash payments of more than $10,000 to the IRS.