Cash payments of up to $900 will begin flowing to 8.7 million taxpayers on Monday following the High Court's dismissal of a challenge to their legality by an Armidale law lecturer.

Bryan Pape, also a barrister and states-rights champion, took on the might of the Commonwealth and lost.

The court has ruled that the Tax Bonus for Working Australians Act passed by Federal Parliament in February is valid under the constitution.

The decision means that $7.7 billion will be transferred to consumers with the aim, in the words of the treasurer Wayne Swan to "immediately support jobs and strengthen the Australian economy during a severe global recession".

The tax bonus was announced on February 3 as part of a $42 billion fiscal stimulus package.