Backpacker Tax Ruling Gives Farming Groups Hope It Will Entice Working Holiday Labour Back – ABC NEWS

01.11.2019

Farmers are not surprised by a Federal Court’s decision on Wednesday, to overturn the controversial backpacker tax.

  • Farmers hope the Federal Court ruling on the backpacker tax entices more working holiday makers to Australia
  • The ATO may still appeal the court ruling
  • NFF president says the court ruling could add to the confusion around the tax

The Federal Court in Brisbane ruled in favour of an international tax accounting company, US-based Taxback.com, which had mounted a legal challenge on behalf of British citizen Catherine Addy against the 15 per cent tax on working holiday makers.

Taxback.com initiated the court action against the tax in January 2017, arguing the tax on backpackers was invalid because it contravened non-discrimination clauses built into tax treaties Australia had signed with the United Kingdom, the United States, Germany, Finland, Chile, Japan, Norway and Turkey.

The Commissioner of the Australian Tax Office has the opportunity to appeal the ruling, and the Federal Government said it will wait for all legal proceeding to conclude before changing any of its policies.

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