THOUSANDS of British tourists could be owed money if they had a working holiday visa in Australia after a controversial “backpacker tax” has been ruled illegal.
The law saw non-Australians pay a 15 per cent tax on all income up to $37,000 (£19,750) – which has now been abolished.
This tax is not paid by Australian residents, who have an income of $18,200 (£9,700) tax-free and pay 19 per cent up to $37,000 (£19,750).
Brits who worked in the country dating back to 2017 could find themselves given that cash back.
For example, Brits who earned up to $37,000 (£19,750) in a year would have paid $5,550 (£2,900) in tax – while Australian residents would have only paid $3,575 (£1,900).
This means Brits could get $1,975 (£1,050) as a rebate.
Some local reports claim the payback could reach millions of dollars to all those affected, according to The Independent.
The ruling came after a case put forward by Catherine Addy, a British woman who worked at a restaurant in Australia for two years.
She took the case to court, which is where it was found to be in violation of an agreement between the UK and Australia.
Carrie will now receive a £11,000 rebate after winning the case.
Justice John Logan said in a statement that it is a “disguised form of discrimination based on nationality.”
The “double taxation” agreement is meant to prevent either British or Australian citizens being subject to a “more burdensome” tax than locals.
A similar agreement is also in place with the US, Germany and Norway.
The “backpacker tax” was introduced in 2017.
Originally, the law only taxed working tourists 19 per cent on wages between $18,200 and $37,000, the same as Australian residents.
According to The Independent, the Australian Taxation Office is “considering an appeal”.
British backpackers previously revealed some of their terrifying stories when working at farms in Australia, a common way for travellers to be able to stay in the country.
Frances Fairs claimed a hostel boss said she had to “sleep with him and his girlfriend or he would rape her”.
Another female backpacker was raped in “two month ordeal after being kidnapped”.
Other countries charge a tourist tax – with Edinburgh proposing a £2 daily fee.
Bali tourists could soon be charged £7 to enter the islands which would go towards preserving its culture.
Venice also has a £9 per day tourist tax.