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Barrister and states-rights champion Bryan Pape took on the Commonwealth and represented himself in the High Court, arguing that the bonus was not a valid use of taxpayers' money because it was a gift, not a tax measure.
But Australia's highest court ruled the Tax Bonus for Working Australians Act, passed by federal parliament in February, is valid under the constitution. The High Court decision will see $7.7 billion transferred in an attempt to "immediately support jobs and strengthen the Australian economy during a severe global recession", as treasurer Wayne Swan put it.
Read more in The Australian newspaper: 'Cheques in the mail after High Court ruling'