I am not sure what to make of the challenge in the High Court to the bonus payments that the Federal government wants to make to stimulate the economy.
The challenge is being brought (brang?) by Bryan Pape because he says that the bonus payments are a “gift” and are unconstitutional. If the challenge is sucessful then “ALMOST 850,000 taxpayers targeted by the Federal Government to receive a $900 tax bonus may be legally entitled to only a portion of the payment and as little as $1”.
The court heard that on one interpretation of the constitution, the law passed by Federal Parliament in February to pay the bonus could operate only by refunding tax owed in 2007-08.
Any taxpayer whose tax liability last year was between $1 and $899 would be entitled to only that amount as a bonus.
On one hand I understand that we must uphold the constitution, but what will be the implications if the challenge is sucessful? Will this alter the federal/state relationship?
The case was expected to take two days but will continue today – the third day of the hearings.