HIGH COURT OF AUSTRALIA
3 April 2009
Media Release
On 26 February 2009, proceedings were commenced in the Sydney Registry of the Court claiming declarations that the Tax Bonus for Working Australians Act 2009 (Cth) is invalid and that a "tax bonus" payable to the plaintiff under the Act is unlawful.
The plaintiff and the Commonwealth agreed to submit to the Court a pecial Case setting out questions for determination by the Court. The Special Case was referred to the Full Court by a Justice on 13 March 2009. It was heard in Canberra on 30 and 31 March and 1 April 2009 before all seven Justices of the Court.
The Court announced its answers to the questions today and will give its reasons later. A majority of the Justices would answer the questions as follows:
Question 1: Does the plaintiff have standing to seek the relief claimed in his Writ of Summons and Statement of Claim?
Answer: Yes.
Question 2: Is the Tax Bonus for Working Australians Act (No 2) 2009 (Cth) ("the Bonus Act") valid because it is supported by one or more expressed or implied heads of legislative power under the Commonwealth Constitution?
Answer: The Bonus Act is a valid law of the Commonwealth.
Question 3: Is payment of the tax bonus to which the plaintiff is entitled under the Bonus Act supported by valid appropriation under ss 81 and 83 of the Constitution?
Answer: There is an appropriation of the Consolidated Revenue Fund within the meaning of the Constitution in respect of payments by the Commissioner required by s 7 of the Bonus Act.
Question 4: Who should pay the costs of the Special Case?
Answer: In accordance with the agreement of the parties announced on the second day of the hearing of the Special Case, there is no order for costs.