This article by my colleague Carrie Rome-Sievers is a very succinct summary of the current principles governing a genuine dispute for statutory demands, recommended reading if you are preparing an application or defending one.
When a company is served with a statutory demand it may apply to Court to set it aside under s 459GCorporations Act 2001 (Cth) (see also s 459J). Where the ground for the application is that the company disputes that it owes the debt, or has an offsetting claim, s 459H requires that this be genuine (see s 459H(1) and the definition of ‘off-setting’ claim in s 459H(5)). So – when will an alleged dispute or off-setting claim be accepted as genuine? Or what should be pointed to as demonstrating that it is not?
Practitioners will in some cases quickly form a preliminary view on this based upon the old ‘smacks of recent invention’ hallmark. Certainly that preliminary view may be borne out on closer examination, as was the case in a Court of Appeal decision in which I appeared some years ago – Rescom Asia Pacific…
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Mark McKillop Barrister 
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