Express law No. 93

3 April 2009

High Court upholds validity of tax bonus payments

The High Court has this morning held that the tax bonus payments can be validly made, in accordance with the Tax Bonus for Working Australians Act (No. 2) 2009. The payments are a component of the Government's Nation Building and Jobs Plan.

In Pape v Commissioner of Taxation & Commonwealth the plaintiff challenged the validity of the tax bonus payments. The High Court heard the case from 30 March to 1 April.

The Court this morning pronounced its orders. The orders made clear that the Court considered that the legislation validly provided for the tax bonus payments to be made.

The Court will give its reasons at a later date. A more detailed Express Law will be issued when the Court provides reasons for its decision.

AGS acted for the Commissioner and the Commonwealth, with the Solicitor-General Stephen Gageler SC appearing with Stephen Lloyd SC and Guy Aitken.

For further information please contact:

Guy Aitken
Special Counsel
T 02 6253 7084 F 02 6253 7304

David Bennett QC
Deputy Government Solicitor
T 02 6253 7063 F 02 6253 7303

Important: The material in Express law is
provided to clients as an early, interim view for general
information only, and further analysis on the matter
may be prepared by AGS. The material should not be
relied upon for the purpose of a particular matter.
Please contact AGS before any action or decision is
taken on the basis of any of the material in this message.