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Working Holiday: Australia Must Repay Backpacker Tax

2019-10-30T10:46:44.052Z


Traveling, working, traveling - for many backpackers in Australia the ideal combination. Since 2017 they have to pay a tax. Wrongfully, a court ruled. Thousands of Germans can hope for a repayment.



Tens of thousands of foreign backpackers who have financed their holidays in Australia with cheap jobs can hope for a repayment of the local tax offices. A federal court in Brisbane has now declared the so-called backpacker tax inadmissible.

Since 2017, backpackers from eight countries who were making money on a working holiday visa had to pay a 15 percent tax on their income. The decision also affects many young people from Germany.

According to the court, workers from countries with which Australia has tax treaties should not be asked for additional cash. Judge John Logan said it was "a disguised form of discrimination based on citizenship".

According to information from the Australian broadcaster ABC, about 75,000 foreigners can expect to get back money from the Australian Tax Office (ATO). The total numbered the transmitter to several hundred million euros.

The tax authority now wants to examine whether it appeals against the decision. The lawsuit goes back to the lawsuit of a British backpacker, Catherine Addy. The verdict also applies to tourists from Turkey, Norway, Finland, Japan, Chile and the USA. By 2017, backpackers like Australians did not have to pay taxes as long as their income did not exceed 18,200 Australian dollars (just under 11,200 euros).

Each year, Australia awards around 150,000 foreigners a so-called work visa for tourists. According to estimates, these include around 25,000 Germans. Many work in the hospitality industry or on farms.

Source: spiegel

All business articles on 2019-10-30

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