Brits working in Australia could be owed thousands following a landmark legal case that ruled the government's 'backpacker tax' does not apply to some visitors.
British backpacker Catherine Addy first brought the case to court after she was taxed on her earnings while on a working holiday visa in 2017.
The Australian government imposed new rules in January of that year that meant visitors on two types of working holiday visa were no longer entitled to a tax exemption on the first $18,200 they earned - and would instead be taxed 15 per cent on any earnings up to $37,000.
However, the court found that the 'backpacker tax' was in breach of existing tax treaties between Australia and eight countries, including the UK.
It means that citizens of those eight countries - the UK, US, Germany, Finland, Chile, Japan, Norway and Turkey - on a category 417 or 462 visa must be taxed in the same way as local workers, who do not pay any tax until their yearly income exceeds $18,200, if they are living in Australia.
Justice John Logan who made the landmark ruling described the tax as "a disguised form of discrimination based on nationality", the BBC reports.
Ms Addy, 27, who first arrived in Australia in 2015, told ABC News she was pleased with the outcome.
"I think it is wrong that foreigners should be taxed more harshly than Australians when they are doing the same work," she said.
"In my opinion it is a slippery slope. It just makes sense, no matter where you come from, that if you are doing the same work then you have to be paid the same money."
Ms Addy's lawyers argued that she should be considered a resident as she was renting a shared house, which would entitle her to a tax break on her earnings.
She now stands to be refunded more than $2,000 with local media predicting that tens of thousands of foreign nationals may be owed the same.
Australia sees around 150,000 foreigners arrive in the country on working holiday visas every year.
The Australian Tax Office said it was considering whether to appeal against the ruling.
