ATO appeals garnishee decision, forces VA to extend

The legal profession crowed in concert on May 15 when NSW Supreme Court judge Peter Brereton threw a lifeline to Hudson Global Resources (AUST) Pty Limited (HGRA), one of the Albanese government’s preferred labour hire firms and a recidivist tax evader.

Justice Brereton’s decision In the matter of Hudson Global Resources (Aust) Pty Limited [2026] NSWSC 535 stayed the effect of an ATO-applied garnishee order that had been swiping 20 per cent of each payment Scotpac made to HGRA under an invoice financing arrangement negotiated by Glenn Livingstone of WLP Restructuring.

Livingstone had been appointed voluntary administrator (VA) of HGRA on April 22 after months of engagement with the company’s directors, who’d sought without success to placate the tax office, no mean feat when you owe $25 million.

When the directors placed the company into administration Scotpac cancelled its arrangement, forcing Livingstone and WLP colleagues Ben Ho and Nick Charlwood to negotiate a new deal to put the company on a positive operational footing.

Or at least so Livingstone and his colleagues thought.

The day after their appointment the administrators wrote to the Commissioner of Taxation requesting he withdraw the garnishee notice on the basis that the company was in administration. The Commissioner refused, effectively preventing the VAs from being able to trade the business while they negotiated with three potential deed proponents.

On May 8 the administrators went to the court seeking a reprieve and a week later Justice Brereton made orders suspending the notice.

Corrs, Gadens, Mallesons, Ironbridge Legal, Pinsett Masons. Multiple firms with an iron in the insolvency fire published analysis of Justice Brereton’s decision in the following weeks. But there were more twists to come.

In their report to creditors ahead of the second meeting on June 24 the administrators recommended one of three DoCAs being proposed but the Commissioner remained opposed believing the amounts anticipated to be returned to unsecured creditors under the preferred DoCA scenario were inflated.

The Commissioner also questioned the extent and adequacy of the VAs’ investigations and wanted the second meeting adjourned.

At the same time the VAs were desperately trying to forestall cancellation of the company’s license by the Victorian Labour Hire Authority, without which the preferred deed proponents would not proceed and they also copped a show cause notice from the ACT Labour Hire Authority.

HGRA’s more than 1300 staff and contractors however were in favour of the preferred DoCA and when the resolution was put to the meeting Livingstone used his casting vote to push it through in defiance of the Commissioner’s objections.

Shortly afterwards the Commissioner commenced his long threatened appeal of the Brereton judgment, forcing Livingstone back to court this week where he obtained orders from Justice Ashley Black extending the administration while the appeal remains on foot.

If the appeal is successful the Commissioner will no doubt look to recover the money denied him since the effect of the garnishee notice was suspended, we doubt he’ll care where it comes from and we know that like garnishee notices, any decision affecting administrator liability will provoke renewed clamour, crowing and analysis.