Earnings Redirection Order in the ACT (Wage Garnishment)

If the person who owes you money has a regular job, an earnings redirection order is often the most reliable way to collect. It forces their employer to deduct a set amount from each pay cycle and send it directly to you until the debt is cleared.

In other states this is called a garnishee order on wages. The ACT uses its own terminology under the Court Procedures Rules 2006 for a similar wage-collection process.

What an Earnings Redirection Order Does

The order attaches to the debtor's wages or salary. Once served on the employer, the employer must deduct the specified amount from the debtor's net pay each period and remit it to you. The deductions continue until the full judgment debt — including post-judgment interest and recoverable court costs — is paid off, or until the court varies or discharges the order.

Employers are legally prohibited from dismissing or penalising an employee because of an earnings redirection order.

What You Need Before Applying

Before you can apply, two prerequisites must be in place:

1. A registered judgment. If your order started at ACAT, it must be registered in the Magistrates Court under Section 71 of the ACAT Act first.
2. Form 2.49 served. The debtor must have been served with the pre-enforcement notice and judgment copy at least seven days before you file.

You also need to know the debtor's employer — their name, registered business address, and ideally which pay cycle the debtor is on. If you don't have this information, start with an enforcement hearing (Form 2.50/2.51) to compel disclosure.

How to Apply

Lodge these at the Magistrates Court Civil Registry:

• An earnings redirection order application
• An affidavit in support (CPR Rule 2351) — confirming the debt balance, the debtor's default, and the employment details
• Court fee — $176 for individuals, $351 for corporations

Serving the Order

Once issued, the order must be served on the employer at their registered business address, with a copy served on the debtor. The order takes effect seven days after service on the employer.

From that point, each pay cycle produces a deduction. The employer sends it to you directly.

Protected Income

The order can't strip the debtor bare. Earnings redirection orders cannot reduce weekly wages below a statutory minimum threshold that covers essential living expenses. Federal social security benefits — Centrelink payments, JobSeeker, Age Pension — are completely exempt and cannot be redirected under any circumstances.

When to Use It

Earnings redirection is the best tool when:

• The debtor has steady employment with a known employer
• The debt is large enough that ongoing deductions make sense
• You want predictable, recurring payments rather than a one-time grab

For lump-sum collection — say the debtor has money sitting in a bank account — a debt redirection order is the better fit.

The Enforcing an ACAT Order in the ACT guide covers both tools with the exact forms, fees, and service rules, plus a decision matrix to match your debtor's situation to the most effective enforcement method.

See more Australian Capital Territory guides →