A High Court hearing has been told the federal government has the power to deliver stimulus payments to kickstart the Australian economy.
It follows a challenge by Armidale law lecturer, Bryan Pape, who claims the Rudd Government’s $900 stimulus payments breach the Tax Bonus Act and the Constitution.
On day two of the hearing, the commonwealth argued the payments are supported by the parliament’s constitutional powers and are part of an international fiscal response to the global economic crisis.
The case is being heard by the full bench of the court.
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