The Court held that a company served with a statutory demand based on a judgment arising from an adjudication certificate under the Security of Payment Act cannot genuinely dispute the existence of the debt under s 459H(1)(a), following Douglas Aerospace and Diploma Construction. However, the company may rely on 'true' offsetting claims (such as damages for breach of contract) under s 459H(1)(b), and the adjudicator's rejection of those offsetting claims does not bind the court on the s 459G application. The Court left open whether the Broadbeach principles regarding Commonwealth tax debts should apply with equal force to State Security of Payment Act debts, and whether s 459J(1)(b) might provide broader relief in future cases than suggested in Diploma Construction.
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