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Australia – UK waitress wins discrimination case over Australia’s backpacker tax (BBC News)

03 November 2021

A UK woman has won a legal battle against Australia's so-called "backpacker tax", in a ruling that may have implications for other travellers, reports BBC News. Catherine Addy argued she was unfairly taxed on pay she earned while working as a waitress in Sydney in 2017. The tax - imposed that year - had discriminated against her on the basis of her nationality, she said. Other backpackers affected by the same rule have been waiting on the decision by Australia's highest court.

They may now be able to ask Australian authorities to review their tax assessments. The ruling relates to a working holiday visa, known as the 417, offered to foreigners aged between 18 and 31. They are subject to a higher rate than for Australians. Addy's lawyers argued the rules were at odds with an international "double tax" agreement Australia has with the UK and several other nations. Citizens of those countries should be taxed like Australians, they said.

In a judgement delivered on Wednesday, the High Court of Australia said, "The question is whether that more burdensome taxation was imposed on Ms Addy owing to her nationality. The short answer is yes." The Australian Tax Office had argued to the court that there was no discrimination based on nationality. The Office added that the decision was only relevant in cases where the working holiday-maker had been resident in Australia for tax purposes since 2017 and applied to those coming from the UK, Germany, Israel, Japan, Norway, Finland, Turkey or Chile.