Backpackers vs. Australian Taxation Office
Are you a resident for tax purposes or not?
Backpackers Buddy, a tax refund firm in Australia with an office in Manly, is heading to court with the Australian Tax Office, to clear up legislation covering who can and can?t get tax refunds from their time working in Australia.
Backpackers Buddy is fighting to assess what makes people residents for tax purposes clearer. There is uncertainty for visitors to Australia as to whether they are residents for tax purposes. In our opinion much of the information published by ATO especially on its website is unclear and arguably misleading.
If Backpackers Buddy?s client wins this case, this will result in a greater number of Backpackers being eligible for a tax refund. This means more travellers with more money to spend in Australia.
This case came about because Backpackers Buddy assessed one of their Irish backpacking clients, as a resident of Australia for tax purposes. The Australian Taxation Office disagreed.
In 2011 Backpackers Buddy assisted another client against the ATO and won the case ? refer Matthew Groves v Commissioner of Taxation.
Backpackers Buddy wants the rules to be clear for their clients and for all backpackers, so we all know where we stand when it comes to tax time. Some backpackers are missing out on accurate refunds of their tax and this case will deliver the answers they need. Watch this space.