HotelsCourt rules thousands of working holidaymakers were wrongly taxed

A big win for backpackers Down Under

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Tens of thousands of foreign nationals may be owed money.
Tens of thousands of foreign nationals may be owed money.

CANBERRA - Working holidaymakers in Australia may soon be better off as a result of a court challenge to the country’s so-called "backpacker tax".

According to a landmark ruling, foreign workers from eight countries have been taxed illegally.

In 2017, the Australian government imposed a 15% tax rate on two visa categories for working holidaymakers.

But a court on Wednesday found the levy was in breach of existing treaties with the UK, US, Germany, Finland, Chile, Japan, Norway and Turkey.

Tens of thousands of foreign nationals may be owed money, local media said.

The BBC reported the levy was challenged by an international tax company on behalf of a British tourist who worked as a waitress in Sydney in 2016.

About 150,000 foreigners travel to Australia every year on working holiday visas, with many finding work in the farming and hospitality industries.

Unlike foreign workers in Australia, locals do not pay any tax until their yearly income exceeds A$18,200 (£15,700; $23,400).

In his ruling, Justice John Logan described the tax as "a disguised form of discrimination based on nationality".

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