Some Backpackers are Not Subject to Backpacker Tax

Some Backpackers are Not Subject to Backpacker Tax

A recent high court decision has confirmed that in limited circumstances

A taxpayer who was on a working visa from the UK who was also an Australian tax resident due to the application of the double tax agreement between Australia and UK, was not subject to the Backpacker tax. 

This would be applicable for travellers who are an Australian resident for tax purposes and come from the UK, Chile, Finland, Japan, Norway, Turkey, Germany or Israel.

It is recommended that people on working holidays in Australia, should check the ATO website prior to preparing their tax returns, it is important to note that most people on working holidays will not be residents for tax purposes as their main purpose is for a holiday and to support their travel through some work to held fund their trip.