Backpackers Buddy has won a case it lodged for client Matthew Groves against the Australian Taxation Office. The favourable ruling enables all backpackers who have lodged a tax return in the last two years to resubmit the paper work to seek amendments that will increase their refund amount.
In 2010, Groves, a British backpacker and a Backpackers Buddy tax client, was denied a tax refund by the ATO, who ruled that he was not a resident for tax purposes.
Backpackers Buddy successfully challenged the ATO?s ruling in an Administrative Appeals Tribunal on Thursday 25 August 2011. The Tribunal has said the ATO was mistaken and instructed the nation?s tax body to amend the assessment, resulting in Groves being eligible for a tax refund.
The win means Groves will go from owing $180 to receiving his full Australian tax refund of $1742 plus interest for the time the ATO has had the money.
?This is a great result?, says David Goldsmith of Backpackers Buddy, ?we are always fighting for the best outcome for our clients. We want clarity for Backpackers in Australia who often do not understand their tax position whilst working which leads to complications when lodging their tax returns.?
Since the ATO must amend its assessment of Groves, it may also have to amend other assessments. If you are or were a backpacker in Australia and have lodged a tax return in the last two years you can resubmit it to seek amendments to increase the return amount. If you are unsure, Backpackers Buddy has knowledgeable staff able to advise you on your previous refunds. Phone 1300 551 412.
Groves is now back at his home in England.