The ATO took money from my account. What now?

The first 24 hours

1. Confirm what it is. Ring the bank and ask whether it has received a third party notice from the ATO, the date, the amount paid over, and whether the notice is one-off or continuing. A continuing notice means later deposits will be taken too. The bank account garnishee page explains the difference.
2. Work out what is about to bounce. Wages, rent, super, loan repayments and supplier direct debits. Contact those people before the dishonour happens. A short honest message is better than a bounced payment.
3. Find your copy of the notice. Check the post and your ATO online services inbox. It tells you the amount sought and the type of notice.
4. Check your ATO balance. Log in and see what is left after the garnishee credit. This is the number you will negotiate on.
5. Do not shift money to a new account. The ATO can see accounts in your name and will simply serve the next bank. Moving money also makes the ATO less willing to withdraw the notice later.

Can I get the money back?

Usually not. Money paid under a valid notice is treated as a payment of your tax debt. There are a few narrow situations where it is worth asking:

• The money was not yours. Funds held in a genuine joint account for a co-owner's benefit, or client money in a trust account, can sometimes be recovered. See joint accounts.
• The notice was for the wrong amount or wrong person. Rare, but it happens with similar names or amended assessments.
• Serious hardship. If the garnishee has left you unable to buy food or pay for essentials, tell the ATO. It may vary the notice, and in individual cases it can consider hardship relief on income tax debts. That is a formal process, not a phone refund.

In every case the request goes to the ATO, not the bank. The bank had no discretion, so complaining to it will not achieve anything beyond an explanation of its fee.

Stopping the next one

A garnishee is the ATO's way of saying it has stopped waiting for you to engage. The way to stop the next one is to engage, quickly and visibly:

• Lodge everything outstanding. The ATO will not negotiate over a debt it cannot see.
• Propose a payment plan you can keep and ask for the notice to be withdrawn in the same call. Debts up to $200,000 can be set up online, but after a garnishee a phone call to 13 11 42 usually works better because you can ask about the notice at the same time. Read whether a plan stops a garnishee.
• Ask about interest. General interest charge runs at 11.43% a year, compounding daily, and is no longer deductible. A remission request can be raised once you are engaged.
• Get advice if the numbers do not work. If the debt is bigger than the business can repay in a reasonable time, a garnishee is often the moment people first look at rescue options. Looking early keeps more of those options open.

What to do next

1. Ring the bank today and confirm whether the notice is one-off or continuing.
2. Contact anyone whose payment is about to bounce, then log in to ATO online services to check what you still owe.
3. Bring lodgements up to date and call the ATO on 13 11 42 to set up a plan and ask for the notice to be withdrawn.

More questions: 8 Garnishee notice questions questions answered · Full guide: Garnishee notices