British backpacker wins legal case against Australia’s ‘backpacker tax’

1 year ago 134

Backpackers from 8 countries volition beryllium capable to prevention thousands of dollars aft the Australian precocious tribunal ruled connected Wednesday that the government’s taxation connected moving abrogation makers from these countries is unfair.

In December 2016, Australia legislated a backpacker taxation that volition spot moving holidaymakers charged a level complaint of 15% connected incomes up to AU$37,000, a taxation of AU$5,550, which is higher than that of autochthonal Australians.

Local Australians are exempt from taxation connected income up to AU$18,200, and if they gain up to AU$37,000 a year, the taxation is lone AU$3,572.

Catherine Addy, a British backpacker, moving arsenic a waitress successful Sydney, filed a national tribunal lawsuit against the backpacker taxation for discriminating against her nationality and violating the Australia-UK pact connected avoidance of treble taxation.

Addy initially won her lawsuit successful October 2019. But the national tribunal overturned the determination successful August 2020. She past appealed to the High Court of Australia, wherever each 5 Hig Court justices ruled successful favour of Addy unanimously connected Nov.3, uncovering that “more burdensome” taxation had been imposed connected her.

“When the presumption of Ms Addy is compared with that of an Australian national, arsenic it indispensable be, that is the lone decision which whitethorn beryllium drawn,” they said successful the judgement.

Epoch Times Photo Backpackers successful Australia from 8 countries volition beryllium capable to prevention thousands of dollars. (Shutterstock*)

“She did the aforesaid benignant of enactment and earned the aforesaid magnitude of income from the aforesaid source, yet an Australian nationalist was required … to wage little tax.”

The Australian Taxation Office (ATO) issued a connection later, saying that the precocious court’s determination does not use to each backpackers successful the country.

“This determination is lone applicable wherever the moving holidaymaker is some an Australian nonmigratory for taxation purposes, and from Chile, Finland, Japan, Norway, Turkey, the United Kingdom, Germany oregon Israel,” the ATO said successful a statement.

The ATO said it is considering this determination and volition supply further guidance successful a timely manner.

Joanna Murphy, the CEO of Taxback.com, which helped Addy bring the case, welcomed the determination saying the tribunal “confirmed important protections for overseas citizens choosing to enactment portion holidaying successful Australia.”

“It was ever wide to america erstwhile this taxation was introduced successful 2016, against the wishes of the cultivation sector, that it breached a fig of planetary taxation agreements,” Murphy said successful a statement connected the firm’s website.

“It besides damaged Australia’s estimation arsenic a moving vacation destination.”

Epoch Times Sydney Staff

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