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Backpacker tourists rip off ATO | Travel News | News.com.auBackpacker tourists rip off ATO
By Keith Moor
Herald Sun
March 31, 2009 12:01am
- Tourists rort tax office
- Fake income claims
- "Free travel to Australia"
FOREIGN backpackers have discovered a way of ripping off the Australian tax system to get free travel down under.
The fraud involves putting in fake income claims, which result in them getting thousand of dollars in tax refunds - despite not having worked.
Knowledge of the lucrative fraud has spread by word of mouth through backpacker hostels in Australia and around the world.
They know they will have left Australia by the time authorities discover the refunds should not have been made.
The young travellers also know the amounts illegally obtained are small enough that it is unlikely to be cost effective for the Australian Taxation Office to bother pursuing them overseas.
Most backpackers involved in the fraud get between $4000 and $14,000 in tax refunds they weren't entitled to.
Almost 560,000 foreign backpackers visited Australia in the past year, most of them from Britain, and 251,000 of them came to Victoria.