November 3, 2021 10:40 PM

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British woman wins legal battle against Australia's backpacker tax

<span style="color: #222222;">A British woman has won a legal battle against Australia's backpacker tax, in a ruling that may have implications for other travellers. Catherine Addy argued she was unfairly taxed on pay she earned while working as a waitress in Sydney in 2017.</span><br />'' <br />'' <span style="color: #222222;">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.</span><br />'' <br />'' <span style="color: #222222;">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 15% tax on income up to A$37,000 which is paid from the first dollar they earn.</span><br />'' <br />'' <span style="color: #222222;">This is a higher rate than for Australians, who get a tax-free threshold of A$18,200.</span><br />'' <br />'' <span style="color: #222222;">Ms Addy's lawyers argued the rules were at odds with an international "double tax" agreement Australia has with Britain and several other nations. Citizens of those countries should be taxed like Australians, they said.</span>

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