6.2 The alleged claims in negligence, and for breach of statutory duty and defective administration
36 First, the applicant alleges that the Department owed her a duty of care which was breached by the Department ignoring medical evidence that her condition was fully diagnosed, treated and stabilised, and in denying her the pension despite the criteria having been met and a New South Wales Supreme Court finding that she had a disability. Secondly, the applicant alleges "a gross defective administration by the Respondent, in, ignoring medical advice, and support letters of those addressing all criteria of the DSP payment, and denying the Applicant her DSP payment." Thirdly, the applicant seeks damages pursuant to s 23 of the Public Governance Act. The applicant contends in this regard that the Department knew or ought to have known that their actions would cause her much distress, damage and loss. The applicant also says that she has been denied a basic standard of living and has suffered economic loss in the form of unpaid pension payments, as well as emotional and psychological distress. These claims were elaborated upon in the applicant's particulars of claim and damage.
37 It is apparent that the decisions refusing the applicant the pension have caused her significant distress. I also accept for the purposes of this interlocutory application that the refusal to grant her the pension has impacted upon her health and financial position in the manner which she alleges. However in order to recover damages and otherwise obtain the relief which she seeks, it is necessary that the applicant plead a cause of action known to the law which has some reasonable prospects of success in the sense which I explained at [34]-[35] above.
38 I accept the Commonwealth's submission that the causes of action alleged do not have any reasonable prospects of success.
39 First, the criterion in subs 94(1)(b) of the Social Security Act was mandatory in the sense that the pension could not lawfully be granted unless the criterion was satisfied as at the relevant times. It follows that, having found that the criterion in subs 94(1)(b) was not met, it was the duty of the Department (and the Tribunal on review) to refuse the application for the pension. Yet the applicant effectively seeks to erect a common law duty of care to grant her pension application notwithstanding the finding that the criterion was not met. That duty of care is plainly inconsistent with the constraints imposed by s 94 of the Social Security Act. This inconsistency would ordinarily be a sufficient reason for denying the existence of the inconsistent duty of care: see Sullivan v Moody [2001] HCA 59; (2001) 207 CLR 562 at [60] (the Court).
40 Secondly and in any event, no common law duty of care arises with respect to the exercise of powers under the Social Security Act: Wang v Secretary, Department of Employment & Workplace Relations [2006] FCA 898 at [48] (Heerey J); Pickering v Centrelink [2008] FCA 561 (Pickering) at [15]-[21] (McKerracher J); see also by analogy Scott v Officer Pedler, Department of Social Security [2004] FCAFC 67; (2004) 80 ALD 283 at [94] (Conti J (with whose reasons Gyles and Allsop JJ relevantly agreed)) (Scott v Pedler). The reason for this is that the statutory power is subject to review. That review process is regarded as obviating the necessity for a common law duty of care. Nor has the Act been interpreted as evincing any intention to confer a private right of damages for breach of statutory duty given, as noted above, the stipulation by the Social Security Act of mechanisms for the review of decisions and the Act's overriding purpose being for the benefit of society in general, as opposed to individual recipients of social welfare: Scott v Secretary, Department of Social Security [2000] FCA 1241; (2000) 65 ALD 79 at [17]-[19] (Beaumont and French JJ); Scott v Pedler at [93] (Conti J (with whose reasons Gyles and Allsop JJ relevantly agreed)). In this regard, as I have mentioned, the applicant had available three levels of review culminating in the statutory right of review by the Tribunal (each of which she exercised) from which an application, in turn, may be (but was not) made by way of judicial review to this Court challenging the legality of the Tribunal's decision.
41 Thirdly, in the applicant's particulars of claim and damage, she relies upon ss 23 and 25 of the Public Governance Act. Section 25 is located in Subdivision A of Division 3 of Part 2, which sets out "general duties of officials". Section 25 provides:
(1) An official of a Commonwealth entity must exercise his or her powers, perform his or her functions and discharge his or her duties with the degree of care and diligence that a reasonable person would exercise if the person:
(a) were an official of a Commonwealth entity in the Commonwealth entity's circumstances; and
(b) occupied the position held by, and had the same responsibilities within the Commonwealth entity as, the official.
(2) The rules may prescribe circumstances in which the requirements of subsection (1) are taken to be met.
42 Section 23 appears in Subdivision D of Division 2 of Part 2-2 and provides:
(1) The accountable authority of a non-corporate Commonwealth entity may, on behalf of the Commonwealth:
(a) enter into arrangements relating to the affairs of the entity; and
(b) vary and administer those arrangements.
(2) An arrangement includes a contract, agreement, deed or understanding.
(3) The accountable authority of a non-corporate Commonwealth entity may, on behalf of the Commonwealth, approve a commitment of relevant money for which the accountable authority is responsible.
43 The "accountable authority" here is the Secretary: see s 12, Public Governance Act.
44 As in the case of the Social Security Act, any claim relying upon the Public Governance Act depends upon the applicant establishing that this Act is intended, as a matter of statutory construction, to confer a private right of action for damages: O'Connor v S. P. Bray Ltd (1937) 56 CLR 464 at 477-478 (Dixon J); Byrne v Australian Airlines Ltd (1995) 185 CLR 410 at 424 (Brennan CJ, Dawson and Toohey JJ). However no such intention can be discerned from the provisions of the Public Governance Act. Section 23 authorises the Secretary as the relevant accountable authority of the non-corporate Commonwealth entity to enter into arrangements, such as contracts, which may in turn provide for the making of payments to individuals. However, the section has nothing to say in terms of conferring private rights to compensation for breaches of duty. Nor does s 25 or any other provision confer a private right of action: see by analogy Deputy Commissioner of Taxation v Frangieh (No 3) [2017] NSWSC 252; (2017) 321 FLR 1 at [672] (Harrison AsJ); Shamir v Commonwealth of Australia (Australian Taxation Office) [2015] FCA 1463 at [11] (Pagone J).
45 Finally, I note (as earlier observed) that the Tribunal's decision post-dated the application to this Court and this is not an application for judicial review of that decision. Nonetheless, and for the sake of completeness only, no error is in any event apparent in the Tribunal's consideration of the matters upon which the applicant seeks to rely as founding compensable error. The first matter relied upon by the applicant is a letter dated 18 July 2017 in which Dr Kumar, a medical practitioner, expressed the opinion that her condition "has now been fully treated, and stabilised, and will not show any further improvement": see also amended statement of claim at [15]. The Tribunal apparently accepted that opinion, and this may well have underlain (at least in part) the Tribunal member's observations at the hearing that he had no doubt that in the end the applicant would get the pension. However, as the Tribunal observed in its reasons at [15], Mr Kumar's opinion was given "five months after the date of claim". Given that other medical evidence of her condition in April 2017 (to which the Tribunal also referred at [15]) indicated that her condition had not then stabilised, the Tribunal concluded that "her mental health condition was, at the date of claim, fully diagnosed, but, in view of ongoing acute treatment well after the date of claim, not fully treated and not fully stabilised at the date of claim, 15 February 2017." That conclusion was open to the Tribunal to find, based upon the medical evidence before it. That being so, no error is apparent in the Tribunal's finding that an impairment rating could not therefore be assigned and the applicant did not satisfy the criteria in subs 94(1)(b) of the Social Security Act.
46 The second matter on which the applicant relies is the perceived inconsistency between the Tribunal's decision, on the one hand, and a finding by a judge of the New South Wales Supreme Court that she had a psychiatric disability, on the other hand. However, as the Commonwealth submits, any such finding by the Supreme Court would not have depended on satisfaction of the criteria for the grant of the pension and, in particular, the requirement that the impairment be "permanent" in the specific sense in which that term is defined in the Determination: see above at [26].
47 It follows that, even on a consideration of the applicant's materials, any cause of action in negligence or for breach of statutory duty has no reasonable prospects of success.