Working Holiday Makers court case update

The ATO have issued guidance regarding the recent Federal Court case that challenged the validity of the WHM legislation in respect to tax treaties with other countries. In summary the ATO is advising employers to tax payees according to the information they provide on their TFN declaration. For example, if a payee declares that they are a foreign resident or an Australian resident for tax purposes as opposed to a WHM, the payee should be taxed accordingly until such time that the ATO advises otherwise.

The guidance is available at: https://www.ato.gov.au/Individuals/International-tax-for-individuals/Coming-to-Australia/Working-holiday-makers/