Working holiday makers

The Federal Court recently decided that a UK citizen was a resident of Australia and, although holding a working holiday visa, was not subject to the working holiday maker tax rates.  This is because the non-discrimination article of the Australian/United Kingdom Double Taxation Agreement applied to the taxpayer.

Website Comments

  1. James O'Grady
    Reply

    Interesting case. Thanks for the video message. It appears that there is discrimination in our treatment of backpackers that will most probably affect the numbers of backpackers willing to come to Australia not only to visit but also work in seasonal areas.

    • Sergio
      Reply

      wonder why no one spotted this before. how can the govt create a law, the backpackers law, without one of the law making people turning around and saying yeah but won’t we have an issue with the double tax treaty with UK (article 25).. But also if the govt wants to increase the revenue through backpackers i am sure they can enter a clause of some sort to say that article 25 doesn’t apply to this law but I am not a law maker but I am sure they have ways to get around it if they want.

  2. John Jeffreys, Tax Counsel, Tax and Super Australia
    Reply

    Thanks for your comment Sergio. Technically, the government can’t just enact something that overrides Article 25. This is because the double tax agreements override anything that is inconsistent with them in our domestic tax legislation. This comes from section 4 of the International Tax Agreements Act 1953. To change Article 25, the government would need to have a negotiation with the UK government. Not so easy to do.

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