Federal court rules backpacker tax unlawful

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The Federal Court has struck down the Coalition’s controversial ‘backpacker tax’, introduced in 2016, ruling that it is unlawful to charge non-residents higher taxes than Australian residents:

The federal court in Brisbane ruled it was not lawful that a non-citizen should have to pay more tax on earnings than an Australian doing the same job.

The tax means people on a “working holiday visa” have to pay 15 per cent tax on earnings under $18,200.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.