Is it possible your neighbors dont adhere to the "if you can't pay for it in cash, you cant afford it"? I guess some people can have debt and be happy at the same time. A car loan would be of little significance compared to living in a 3rd world country. I have met a lot of people from different cultures through my work and it's interesting to learn how they prioritize things differently. Like living beyond their means to own expensive cars and home because it portays an image by which they appear successful which in turn earns them trust and respect from their peers and potential clients

PeterM
My parents brought me up to believe "If you work hard you will do well".

Yeah, they were wrong. There's a book that came out in 1996 called "The Millionaire Next Door". The authors interviewed all these rich types to analyse their habits to see whether there were any consistencies to their success stories. They did find some, which boiled down mostly to two things: run your own business and live within your means. The second I wholeheartedly agree with as a strategy to assist success, but there were several problems with the first. One is that they only interviewed successful people. As they never spoke with people who ran their own business but weren't successful, they incorrectly concluded that running your own business is a path to millionaire status. The other is that they omitted the effect of pure, unadulterated, dumb luck - most of these millionaires were invested heavily in the stock market, which at the time was the greatest bull market in history (up 61% in the two years before publication alone). While the whole premise of the book isn't completely bogus, it is deeply flawed because the authors didn't understand how to do a statistically valid test. That probably didn't stop them getting rich off the proceeds of it though.

"But they have gone to one of our customers and demanded 15% of their bill be retained and sent to the ATO."
I suggest you speak with your legals about the process.
 
Firstly I would challenge the legal right of the ATO to commence, and then threaten to carry out this action.
Be specific and ask the ATO exactly under which law, which act and which section of the act is the law valid. And ask for a printed hard copy of the law to be posted to you. Ask exactly on which date was the law passed, on which date did the law receive mandate from the voting public, and exactly which day did that law receive royal assent. If the ATO is unwilling/unable to supply the documentation within 21 days refer to your legals for defence. I am learning there are a lot of "laws" that have been made up. They are unlawful, illegal, repugnant and not valid.
 
Remember always harassment and intimidation is considered unlawful and can easily be challenged.
 
Secondly I would be asking the ATO (in writing) what would be the repercussions to both yourself, your company, and your customer, should your customer be unable/unwilling to send the money to the ATO. Strongly emphasis the question is of a totally hypothetical nature only. Would the ATO then remove without notice the amount from your customer's bank account?
 
If it was me I would get nasty and provide notice to the ATO you are now withholding payment of exactly the same amount should the threat of garnishee continue and that you will continue to with hold the sum until such time the matter is dropped. (however I am not offering you advice, it is only what I would do because I am a grumpy nasty old man, for these exact reasons)
 
"Firstly how do they know my customers"
They follow the trail of money.
If you trade as a company your accountant has access to your invoices and bank account records when working on tax returns which the ATO can vet.
 
"and secondly what now do you think that customer thinks of my company"
Important point. Would be interesting to discuss privacy laws and damages to your good name and the good name of your company.
Maybe discuss with your customer if they are open to it.
 
All of this is pointing to one thing.
The country is broke and only continues to operate (for the short term) using smoke and mirrors and unlawful laws.
 

And also they know far more about us and what we do,far quicker nowadays. I mean money in and out of your account has been viewed by them from along time ago. Checking your associates seems to have gone past football ruling bodies to the ATO. If you sell your car it's sounds like you need to interview the buyer to make sure their not a drug dealer or Bikie gang member.
This was not an isolated case and as we were told many were received just in the past two weeks. My company turns over and is worth far more that the money I owe to the ATO but I refuse to a single cent to them without them having to do some work for it. Looks like they beat me at my own game.
Oh and it's funny that it's just a garnishee notice they haven't fined me for doing the wrong thing or not paying. We have an arrangement in place that we stick to. It's just another sneaky avenue they must have come up with. Like to know what would happen if I couldn't pay wages before Xmas etc because of it.
Anyway time to convert my money to gold. Those $320 dollar switches looking just about right now. (Except they will know that now as well)

Oh and case your wondering my company has run over ten years in construction. We have to provide all details that employees entitlements are paid and up to date, we have never had a case opened in Dept of fair trading and have only had 1 workers compensation case and 1 insurance case where we flooded a shopping center (Clairemont) in WA about this time before Xmas. So I call us a long running and worthwhile legitimate business that uses recycled products and helps our economy. Keith

Most insurance companies will write off a car at about the 80% wholesale market value and if the car has structural damage or had mutliple airbags deployed usually call it a statuary right off which means now under 15 years old cannot be road registered in any state or territory in Australia. and must be used for parts or offroad/track, this was to stop shonky backyard repairs and rebirthing of vechicle that found their way back on the road and were purchased by many private sellers.

The first RS focus to be written off in Australia was by the media whilst driving it for review, I saw the car at the RS shop in Aubury and the media boys had done a good job. Shame to see a new vehicle written off, but torque steer under acceleration does unsettle most drivers untill they learn to drive a high horsepower front wheel drive vehicle.

One way Im saving money is not buying a new car every 5 years like the majority, which means those "drunken sailors" in all 3 Gov Tiers wasting our BILLIONS on futile dead end projects arent getting their money off me from all the fees, taxes and charges that go with every new car, and the insult from Simsmetal of 50c x kilo for your car when the yard doesnt want it as a trade in, or the "pulled wool over the eyes" when the caryard fools you into believing your getting a fabulous deal when you trade up, just to see it back on the lot for DOUBLE what they reckon was its max worth 5 minutes ago.
My last Brand new car was 1988 Toyota HJ61 Turbo Diesel 5 sp manual.........the only failure in all those years was the turbocharger needed a re-build in 2008 after 20 years!  .....which cost $260 as I fitted it myself. ...... Air Con is still like Mt Hotham in winter!
The wife bought a 30k 3 month old Prado V6 Petrol on 2001, for $36k instead of $56k, and in 15 years has only done a lower Rad Tank req a whole new Rad even tho rad core was perfect, plus the elec aerial has morphed into a manual, plus Air Con Pump failed. See, 13 years newer, yet not as tough as the HJ61 TD ! 
 
Changing Mineral oil Engine oil and Filter every 5,000kms or 12 months is "money in the bank" if you want them to last, or Full Synthetic & filter every 10,000kms................
Brake Fluid flush/change MAX of 2 years regardless of distance..............
Diff/s and G/box and Transfer or Auto every 60,000k drain/refill............
 
All my 9 cars that were meant to run on "Super" have been getting 2 stroke Super Outboard Oil (SOO)  at 200:1 with none suffering engine damage. Castrol Chief Chemist reckoned if the Philip Island Superbikes and Racing Outboard Marine Engines that spin 4 or 5 times faster that car engines thrive on SOO, then all Super petrol cars on our highways will too..............he was right.............. only with highly stressed track cars did he recommend lead replacement additive as well as the SOO.
 
Hope this helps