Catherine Addy-a British woman has won a legal battle against Australia’s so called “backpacker tax”, in a ruling that may have implications for other travellers.
- Catherine argued she was unfairly taxed on pay she earned while working as a waitress in Sydney in 2017.
- “Backpacker’s tax” started in 2017, under which the Australian Government levy a flat 15 per cent tax on every dollar that is earned by two categories of working holiday visas-known as the 417, which are linked to seasonal labour.
- The tax, imposed that year, had discriminated against her on the basis of her nationality, she said.
- The working holiday visa is offered to foreigners aged between 18 and 31. They are subject to a 15% tax on income up to A$37,000 which is paid from the first dollar they earn.
- This is a higher rate than for Australians, who get a tax-free threshold of A$18,200.
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