NTCAT tells IPEA to pursue former NT Sam McMahon’s alleged unpaid expenses on own accord

A Territory tribunal has dismissed a federal audit body’s attempt to try and recoup an alleged unpaid debt from one former NT Senator. Find out why.

Sam McMahon speaks to media at the 2022 Federal Election ballot draw. Picture: (A)manda Parkinson

A Territory tribunal has dismissed an attempt by a federal audit body to reclaim a former senator’s alleged unpaid debt of $3720.94, telling the body to “engage” the Commonwealth’s “significant legal resources” to recoup what is allegedly owed.

In December, the Independent Parliamentary Expenses Authority (IPEA) tried to recoup the money from former NT Senator Sam McMahon through the Northern Territory Civil and Administrative Tribunal.

But on December 18, Tribunal member Leslie McCrimmon dismissed the case, citing the matter was not within the Tribunal’s jurisdiction.

The case was dismissed despite IPEA asking for the case to be transferred to the NT Local Court, pursuant to section 99 of the NTCAT Act.

Ms McMahon had previously indicated she would seek to have the case dismissed.

Former Liberal Democrats Senator for the NT Sam McMahon votes in the 2022 federal election on May 21. Picture: Jason Walls

Ms McCrimmon determined it was “not appropriate” for the case to be transferred to either the Local or Supreme Court in the Territory.

“Dealing first with a transfer to the Local Court, actions for debt in a sum below $25,000 are dealt with under the Small Claims Act 2016. The jurisdiction to hear such claims, … is vested in the Tribunal, not the Local Court,” her decision said.

“Consequently, with respect to the Local Court the requirement in section 99A(2)(b) of the NTCAT Act that the ‘proceeding would be more appropriately heard in the recipient court’ is not satisfied.

“Secondly, while the Supreme Court would have jurisdiction to hear the matter, there are courts within the federal judicial hierarchy in which this proceeding would be more appropriately heard.

“In the circumstances, it is difficult to see how the President could be satisfied that the transfer of a debt action in the sum of $3720.94 to the Supreme Court ‘would be in the interests of justice’.”

NTCAT at Casuarina, Darwin. Picture: Pema Tamang Pakhrin

Ms McCrimmon ultimately determined IPEA should “engage the significant legal resources available to the Commonwealth to determine if, and in what court, the proceeding should be recommenced”.

IPEA filed its case against Ms McMahon in September.

The body alleged Ms McMahon “failed, refused, and/or neglected” to repay the $3721 she allegedly owes.

The money was allegedly incurred in Queensland, when Brisbane went into lockdown, and Ms McMahon was there conducting parliamentary business from commercial accommodation.

Ms McMahon served as senator for the NT from 2019 to 2022.

An IPEA spokesperson said the body did not comment “on individual matters related to current or former parliamentarians”.