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Academic challenges stimulus package in High Court

Legal academic Bryan Pape is set to challenge the Rudd Government’s stimulus package in the High Court today, citing the package as “exceeding the government’s taxation powers” making the bonus a “gift.”

If Pape is successful in overturning the new law, it could mean that a number of payments made in past years could be made invalid.

The Commonwealth is vigorously defending the case, claiming the law is indeed valid and an important measure to address the global financial crisis.

The hearing is expected to take two days.

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Comments from the community

  • melissa says:

    IF THE STIMULUS NOW GETS OPPOSED WHAT HAPPENS TO THE PAYMENTS THEY HAVE MADE ALREADY THROUGH CENTRELINK, WILL THEY PAY THEM BACK , US TAXPAYERS WITHOUT KIDS MISS OUT AGAIN LIKE AT CHRISTMAS.

  • Yogi says:

    No, centerlink payments are classed as BENEFIT payments, and are exempt from tax law, so no matter what happens with this case, if you got the money through centerlink because you were already on a benefit scheme (such as youth allowance), ur all good :)

  • Mart says:

    I know for a fact that my sister has received the $900 from centrelink when she received the $950 per child (she has 3 children at school)..what a bonus for her and her husband is on a Coal Miners wage. How can they possible challenge something that has clearly already been paid to some Australians? How is this fair for the average Australians who now look like missing out. Will those already paid have to pay it back?

  • Longines C says:

    Why did’t mr Pape charllenge before the packages being paid. If he loose or win, how much would the court cost, would he bare the cost if he loose?

  • karen says:

    I am very disappointed in this man, my 29 year daughter is on minimum wage working for peanuts and is relying on this money. To be promised something then have it taken away is a slap in the face to hard working Australians.
    My family have never had any handouts, I lost the child endowment when my husband earnt over $52,000, My children have never gone on the dole, we have alway supported them through hard times. I am extremely angry at a man who I suppose earns good money and can buy groceries. Ba Humbug

  • Katrina Keane says:

    As usual, those of us who PAY taxes, PAY for private health and PAY for a good education for our children seem to be set to miss out again. When will the government (either side if the house) realise that taxpayers are sick of supporting people who do not contribute to the building of this nation. We’ve paid the taxes and we’re the ones who deserve the bonus

  • Dave says:

    If Bryan Pape losses he should be made to pay court cost, government cost and compensation for mental anxiety he has caused to millions of Australians at the expense of proving that he knows LAW. He should not say that he does not have political motives because he is a former office holder and a member of the National Party of Australia (source Wikipedia). Once you have an association you cannot prove to be unbiased.

  • richard says:

    if u rather see the money spent on schools, fixing roads, some kind of job miracle give your stimulus cheque back to the government then and tell them to spend it on that insted

    if u need the money to pay a mortgage payment for the month or pay some bills or just to keep your head above water keep it

    they should make it u can take the check if u want it or give it back

    id love to see people who say they rather see it spent on something else hand there cheques back because i know they wont

    why should i because other people arnt u say?

    well im not the one complaining!!!!

  • Sarah says:

    In relation to the comment made by Katrina Keane from Tasmania:
    If I am correct, the bonus payment is to be made to people with incomes less than $80K, $90K and then $100K (those who don’t have excess income to spend during the financial crisis). I’m not sure what system you’re running on, however I do believe, WE (being under $80K) still pay taxes, still pay for private health in many instances and still ‘contribute to the building of this nation’. If your so egotistical to believe that to be worthwhile in society, you must earn greater than $100,000 I suggest you need a serious reality check. Fair enough, my $3300 per year tax contribution is probably nothing on your $25,000 odd payment (assuming you earn $100K) however I suggest my take home pay of $24K is also nothing on yours of at least $75K. And your complaining because your not going to get another $900 to add to that??!!