Third Party Debt Notice

Division 11.1.4 of the Federal Circuit and Family Court of Australia (Family Law) Rules 2021 lets a payee, without notice to the payer or third party, ask the court to issue a Third Party Debt Notice requiring money owed to the payer to be paid to the payee instead (r 11.34). It can attach a lump sum owed (such as a bank balance), redirect earnings from an employer, or require periodic payments. When served, the debt owed to the payer is attached in the third party's hands (r 11.36(1)); a notice binding earnings or regular payments takes effect 7 days after service (r 11.36(2)). The notice stays in force until the total is paid or it is set aside (r 11.38). A third party who does not comply, or treats the payer unfairly in employment because of it, commits an offence (r 11.43).

When you need it

• An order, agreement or child support liability requires the other party to pay you money and they have not paid.
• You know the payer's employer, or a bank or other person who owes the payer money.
• Read the Family Law Practice Direction - National Enforcement List before filing.

1. 1

   Parts A and B: parties and the obligation

   Name the applicant (payee) and respondent (payer) with addresses. Mark whether the obligation arises from a court order, a child support assessment or an agreement, with the date. Set out the amount owed, payments made, the balance, any interest and the cost of the application, and the total.

2. 2

   Part C: lump sum (if applicable)

   Name the third party and their address. The notice requires them to pay the total, or the lesser amount they owe the payer, within 7 days of receiving the notice or of the money becoming payable.

3. 3

   Part D: earnings redirection (if applicable)

   Name the employer and state the amount to be deducted each pay day. The employer may keep a $5 administrative charge per deduction (r 11.37(1)(b)) and must not reduce the payer's pay below the protected earnings rate you state.

4. 4

   Part E: periodic sums (if applicable)

   Name the third party, the period (for example monthly) and the amount to be paid each period until the total is paid.

5. 5

   Part F and the affidavit

   Part F is signed by the Registrar. Your affidavit must comply with rule 11.06 and give the third party's name and address, details of the debt and why it is owed to the payer; for earnings, the payer's earnings, living arrangements, the protected earnings rate and identifying details (r 11.34(2)).

• Lodge the notice and affidavit for filing by email to enforcementlist@fcfcoa.gov.au. The Practice Direction treats this as a Chambers Enforcement Request, dealt with by an Enforcement Registrar and not served first on the other party. Submit a clean copy of the notice, and an affidavit that complies with rules 11.06 and 11.34(2) and shows service of the order under rule 11.59.
• The court's form page says there is no filing fee for this notice.
• If the notice is issued, serve a sealed copy on the payer and the third party by ordinary service, with the court's brochure Third Party Debt Notices (r 11.35).

• To enforce a child support liability, you must first apply for an order for the amount owed (note to r 11.34, r 11.03).
• Money in an account payable on notice becomes a debt due at the end of the notice period, counted from service of the notice (r 11.33(2)).
• The third party may apply to dispute liability or for procedural orders (r 11.39). Payments it makes discharge its debt to the payer to that extent (r 11.40).