Australian legal academic Bryan Pape argued in court that the $900 tax bonus was unconstitutional, that the bonus payment was in effect a gift, and the government had no power to spend billions of taxpayers’ money on gifts.
The Commonwealth said this payment was well within the power and also that the payment was necessary.
The Tax Office is expected to put payment preparations on hold until legal proceedings are through. About 8.7 million Australians are eligible for bonus payments due this month.
UPDATE: The court has decided that the Stimulus package are legit! ATO will start sending the payments on April 6th