Australian Constitution

2009

Pape v Commissioner of Taxation

High Court of Australia(2009) 238 CLR 1

Key Principle

Recognised the Commonwealth's executive power under s 61 as an independent source of spending power in circumstances of national emergency, upholding the stimulus payments during the Global Financial Crisis

The High Court upheld the validity of the Tax Bonus for Working Australians Act 2009, which authorised stimulus payments during the Global Financial Crisis. A majority found the legislation could be supported by the executive power under s 61 combined with the incidental power under s 51(xxxix), recognising a nationhood power that authorised expenditure in response to circumstances of national scale and urgency.

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