We have previously discussed the Full Federal Court decision in Addy v FCT [2020] FCAFC 135 here. In this case, the court held that Ms Addy, a working holiday maker and Australian tax resident was not entitled to benefit from the tax-free threshold. The so-called ‘backpacker tax’.

One of the questions for the court was whether the ‘backpacker tax’ infringed Article 25 of the Australia and United Kingdom Double Tax Agreement that relevant states:

Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances, in particular with respect to residence, are or may be subjected …

The High Court has recently granted Ms Addy special leave to appeal on the Article 25 issue. 

For more information please contact:

Neil Brydges
Principal Lawyer | Accredited Specialist in Tax Law
M +61 407 821 157 | T +61 3 9611 0176
E nbrydges@sladen.com.au

Lucy Liang
Lawyer
T +61 9611 0131
E lliang@sladen.com.au