Debtor Exemptions in NSW: What's Protected From Enforcement

Not everything a debtor owns is fair game. NSW law draws clear lines around what creditors can and cannot reach — and if you don't know where those lines are, you'll spend money on enforcement applications that produce nothing.

Understanding exemptions before you file saves you from chasing assets you're legally barred from taking.

Protected Wages

A garnishee order for wages (UCPR Form 71) cannot reduce the debtor's net pay below the Protected Earnings Amount under s 122 of the Civil Procedure Act 2005:

• Weekly: $626.10 net
• Fortnightly: $1,252.20 net
• Monthly: $2,713.10 net

The amount is $626.10 per week as at 1 April 2026 and is next indexed on 1 April 2027. If the debtor earns close to the threshold, the enforceable deduction will be small — potentially so small that the judgment takes years to clear.

Centrelink and Social Security Payments

Section 62 of the Social Security (Administration) Act 1999 (Cth) protects the saved amount in a bank account from a court garnishee. The saved amount is the total social security payments credited during the four weeks immediately before the order, minus withdrawals from the account during those four weeks.

The protection applies to that calculated amount, not every balance that can be traced back to Centrelink payments.

The saved-amount protection in s 62 does not cover child-support payments merely because they are child support.

Property the Sheriff Cannot Seize

When you obtain a Writ for Levy of Property (UCPR Form 66, after applying by Form 65), the Sheriff can only seize goods that aren't protected. Exempt items include:

Essential household goods: clothing, bedding, kitchen equipment, and basic furniture necessary for domestic living. The Sheriff won't take the debtor's bed, pots, or children's clothing.

Tools of trade: professional tools, machinery, and reference materials the debtor needs to earn a living, up to the statutory bankruptcy threshold. A tradesperson's work tools, a musician's instruments used for professional work, or a consultant's computer are protected.

Principal motor vehicle: the debtor's main car is exempt if its equity (market value less the amount owed under finance) is below $9,950 (indexed). Financing does not automatically make a vehicle exempt; the secured financier has priority over any amount available from its sale.

Bank Account Minimum Balance

Under s 118A of the Civil Procedure Act 2005, a bank garnishee (Form 70) cannot empty the debtor's account entirely. The bank must leave a statutory minimum balance. This prevents the debtor from being left with nothing for immediate living expenses.

Joint Accounts and Third-Party Property

A bank account held jointly by the debtor and a non-debtor cannot be garnished to satisfy a debt owed by only one account holder. The funds are not due exclusively to the judgment debtor.

Similarly, the Sheriff cannot seize property that belongs to someone else — even if it's sitting in the debtor's home. If a family member owns the television or laptop, it's not the debtor's asset to seize.

What This Means for Your Enforcement Strategy

Before spending on Sheriff execution costs ($111 per address and attempt, plus 3% of enforcement proceeds), run through the exemptions:

• Is the debtor's only income Centrelink? A wage garnishee has no wages to attach; a bank garnishee can reach only funds outside the s 62 saved amount.
• Is the car's value after subtracting finance owing below $9,950? The motor-vehicle exemption applies to that amount.
• Do they rent and own no property? A writ against land isn't available.
• Are their wages at or below the PEA threshold? Wage garnishee deductions will be zero.

A debtor whose only income is Centrelink, who rents, has little or no equity in a financed car, and owns no significant personal property may have little reachable property. The s 62 saved-amount protection covers only the calculated balance described above; other funds or assets are assessed separately.

The NSW NCAT Order Enforcement Guide includes a solvency pre-check worksheet to assess whether the debtor has reachable assets before you commit to filing.

See more New South Wales guides →