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High Court decision in the matter of Addy v Commissioner of Taxation

Last updated 2 November 2021

The Australian Taxation Office (ATO) notes the decision of the High Court in the matter of Addy v Commissioner of TaxationExternal Link.

The ATO is currently considering this decision and will provide further guidance as soon as possible.

This decision is only relevant where the working holiday maker is both an Australian resident for tax purposes and from Chile, Finland, Japan, Norway, Turkey, the United Kingdom, Germany or Israel.

Working holiday makers who may potentially be affected by this decision are encouraged to check the ATO website for updated guidance prior to lodging or amending a return or lodging an objection.

Employers should continue to follow rates in the published withholding tables for working holiday makers until we update the ATO website with further guidance.

A working holiday maker’s residency status for tax purposes is determined by the taxpayer’s individual circumstances. Most working holiday makers will be non-residents consistent with their purpose of being in Australia to have a holiday and working to support that holiday.