How does the taxation of backpackers differ from the taxation of Australian workers in general?
First, it must be observed that backpackers are not regarded as tax-residents of Australia. Who is regarded as an Australian tax resident? This is a complex area of taxation law. But it can be summarised in a nutshell as follows: a) those who come to Australia solely to work, even for a short period, will be regarded as tax-residents; b) overseas students will be regarded as tax-residents; c) holiday-makers will not be regarded as tax-residents; e) those combining a holiday with work will not be regarded as tax-residents. An example of the latter is a person holding a Working Holiday visa. In general, travellers will not be regarded as tax-residents. But a backpacker who abandons his wandering ways and successfully applies to the Immigration Department for permanent residency or a temporary work visa will be regarded as a tax-resident from the date of his application. Further information regarding tax-residency can be found in the relevant tax Ruling at the ATO website and also at Resi
