Ms. Addy, a British citizen, lived in Australia on a Working Holiday visa from August 20, 2015, to May 1, 2017, except for a two-month trip to South-East Asia in early 2016. Before moving to Australia, she lived with her parents in the UK and returned there after leaving Australia. When entering Australia, she indicated the UK as her country of residence and got an Australian mobile phone account.
During her time in Australia, Ms. Addy mostly stayed in shared accommodation in Sydney, contributing to rent, utilities, and household tasks. She used this place as her social hub and postal address. She also worked on a horse farm in Western Australia and made short trips to other parts of Australia, always returning to Sydney.
In 2017, Ms. Addy worked as a waitress in Sydney. Initially classified as a non-resident WHM, her tax status changed after an objection. The ATO recognized her as a resident WHM from July 1, 2016, to May 1, 2017, allowing her to claim part of the tax-free threshold. However, she objected again, arguing that she should have been taxed as a resident for the entire year, citing an Australia-UK tax treaty clause.
The ATO rejected her objection, leading to her appeal in the Federal Court. Her main arguments were that she met the residency criteria for the whole year and that, according to the tax treaty, she shouldn't have been subject to WHM tax rates.
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