Jurisdiction
19 Section 1224(1) of the Act provides that if an amount has been paid to a recipient by way of social security payment and the amount was paid because the recipient had made a false statement or false representation, the amount "is a debt due by the recipient to the Commonwealth". Sub‑section (2) provides that the debt may be recovered by the Commonwealth by means of legal proceedings, garnishee notice or, if the recipient is receiving social security payment under the Act, by deductions from that payment. The claim to recover the overpayment from the appellant is, by statute, a claim in debt. However, the appellant's claim to recover the amount deducted on the ground that he had not made any false statement or false representation entitling the making of a deduction from his benefits, is either a claim to a statutory entitlement or a claim in restitution. The precise nature of the cause of action is unimportant for present purposes. As we see the matter, the question turns on s 39B(1A)(c) of the Judiciary Act, which confers jurisdiction on the Court in matters "arising under a law made by the Parliament". The question is whether what has been called the debt claim arises under the Act within the meaning of that provision. The primary judge did not refer to s 39B(1A)(c). His Honour was of the opinion, correctly in our view, that jurisdiction was not conferred on the Court by s 19(1) or s 32 of the Federal Court of Australia Act or by s 4(1) of the SA Act.
20 In Re McJannett; Ex parte Australian Workers' Union of Employees (Q) [No 2] (1997) 189 CLR 654 the Court was concerned with the phrase "a matter arising under this Act" in s 347(1) of the Industrial Relations Act 1988 (Cth). At 656‑657 the Court said:
"The test for determining whether a proceeding is in a matter arising under the Act for the purposes of s 347(1) is whether the right or the duty that is sought to be enforced owes its existence to a provision of the Act. That test follows from what was said with respect to s 76(ii) of the Constitution in R v Commonwealth Court of Conciliation and Arbitration; Ex parte Barrett (1945) 70 CLR 141 at 154, where Latham CJ said:
'One is compelled to the conclusion that a matter may properly be said to arise under a Federal law if the right or duty in question in the matter owes its existence to Federal law or depends upon Federal law for its enforcement, whether or not the determination of the controversy involves the interpretation (or validity) of the law. In either of these cases, the matter arises under the Federal law. If a right claimed is conferred by or under a Federal statute, the claim arises under the statute'."
21 It is common ground that during the relevant period the appellant was entitled to unemployment benefit and later job search allowance. See ss 513, 553, 556 and 561 of the Act in relation to the period after 1 July 1991. The dispute concerns the quantum of benefit payable. Although the matter was not explored before us, the dispute centres on s 559, which provides that a person's benefit is to be worked out using the Benefit Rate Calculator at the end of s 1068. The Calculator requires one to take a number of steps:
· to work out the amount of the appellant's ordinary income on a fortnightly basis;
· to work out his ordinary free area limit (prima facie $60);
· to determine whether his ordinary income exceeds his ordinary income free area limit;
· if his ordinary income does not exceed his ordinary income free area, his ordinary income excess is nil;
· if his ordinary income exceeds his ordinary income free area, the excess is his ordinary income excess; and
· a proportion of the ordinary income excess is the amount by which the amount of the benefit is reduced for ordinary income.
22 The ordinary income free area is the maximum amount of ordinary income a person can have without affecting the rate of benefit. The Department's claim is that the appellant understated the amount of his ordinary income, which resulted in a smaller reduction for ordinary income than would have been the case had he correctly stated it. The appellant claims that he was entitled under ss 559 and 1068 to a benefit in the amount that was actually paid to him. The right that he seeks to enforce is conferred by those sections. The fact that in order to vindicate the right he has to deflect the operation of s 1224, by showing that his claim forms did not contain false information, does not signify. The claim remains one made under ss 559 and 1068. In our view, therefore, the debt claim arises under the Act for the purposes of s 39B(1A)(c).
23 That the Court has jurisdiction over the debt claim is supported by observations of the Full Court in Federal Airports Corporation v Aerolineas Argentinas (1997) 76 FCR 582. In that case the Corporation had made a determination under s 56 of the Federal Airports Corporation Act 1986 (Cth) increasing the landing charges payable for certain aircraft at principal Australian airports. After they had paid the increased charges for some time, the airlines affected brought an action in the Supreme Court of New South Wales for a declaration that the determination was invalid and an order that the Corporation repay the amounts overpaid. The matter was transferred to the Federal Court as a "special federal matter" under the cross‑vesting legislation. In the course of considering whether the airlines could attack the determination collaterally rather than first proceeding under the Administrative Decisions (Judicial Review) Act 1977 (Cth) to determine whether the determination was valid, Lehane J, with whom Beaumont and Whitlam JJ agreed, said at 593‑594:
"No doubt there may be matters, properly described as arising under the ADJR Act, in proceedings other than those commenced by an application under that Act; and it might have been the case that the Court would have had, in respect of such a matter, no jurisdiction other than that given to it by the Cross‑Vesting legislation. However, s 39B(1A) of the Judiciary Act 1903 (Cth) now provides that the original jurisdiction of the Court includes jurisdiction in any matter "arising under any laws made by the Parliament" so that, if the disharmony was significant, it is so no longer. It may also be mentioned, in passing, that another result of s 39B(1A) may well be that, because this proceeding may be said to arise under the FAC Act (itself a law made by the Parliament), the court has in any case jurisdiction independently of the cross‑vesting legislation.
…
The proceeding was transferred to the court because Ireland J saw it as a special federal matter; but the proceeding is now, as it was before his Honour, a common law claim for money paid under what is said to be an invalid determination."