The Full Federal Court of Appeal has found in favour of the Commissioner in the matter of Addy v. Commissioner of Taxation [2020] FCAFC 135.
This decision concerns whether an individual that entered Australia as a working holiday maker was a resident of Australia for tax purposes and whether that individual was required to pay tax at the minimum 15 per cent tax rate applying to working holiday maker income or at the rates that otherwise apply more generally to Australian residents (which incorporate the tax-free threshold).
‘This decision upholds the ATO’s current view meaning that employer obligations have not changed, and employers should continue to apply the appropriate tax tables when determining the amount to withhold for working holiday makers,’ Deputy Commissioner Jeremy Geale said.
The parties have until 3 September 2020 to seek special leave to appeal the Full Federal Court’s decision to the High Court.
