Australia's controversial 'backpacker tax' has been ruled unlawful

The controversial 'backpacker tax' has been struck down by the Federal Court, which could force the government to collectively repay some travellers hundreds of millions of dollars.

The controversial 'backpacker tax' has been struck down by the Federal Court Source: AAP

The Federal Court has ruled a controversial tax on working holiday visa holders to be illegal - paving the way for tens of thousands of backpackers to be potentially repaid hundreds of millions of dollars.

The court ruled on Wednesday the “backpacker tax” could not be levied on some travellers due to anti-discrimination clauses in tax treaties Australia has with other countries.

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