!!! Tax rate reduced for resident workers in the Pacific Australia Labour Mobility Scheme !!!
The Australian Government has made changes to the tax rate for certain income earners who are a part of the PALM scheme.
The new tax rate applicable to these workers has been decreased from a marginal starting rate of 32.5% to now a flat rate of 15%
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The PALM Scheme is a temporary migration program which aims to address unskilled, low-skilled and semi-skilled labour shortages across rural and regional Victoria. Workers under this scheme can find short-term seasonal work as well as longer term placements ranging from 1 to 4 years.
The reduced tax rate of a flat 15% has been applicable since 1 July 2022, meaning this reduced tax rate is applicable to this financial year.
!!! New individual tax rates for Australian permanent residents and citizens 2024-2025 !!!
Starting from July 1 2024, the Australian Government have made significant changes to the applicable tax rates and thresholds.
These changes include:
A reduced tax rate from 19% to 16% for taxpayers who have an income that falls within the bracket of $18,201.00 to $45,00.00
A reduced tax rate from 32.5% to 30% for taxpayers with an income between $45,001.00 and $135,000.00. This threshold has also been increased from $120,00.00 to $135,000.00
The 37% tax rate is now applies to the income bracket between $135,001 and $190,000.00
This will mean that everyone has a tax-free value of $18,00.00, with income being taxed at the rate applicable to the income bracket they fall into in order to reduce the individuals tax payable.
If ones taxable income is hypothetically $190,000.00:
· The first $18,200.00 is tax free
· Income between $18,201.00 to $45,00.00 are taxed at 16%
· Income between $45,001.00 and $135,000.00 are taxed at 30%
· Income between $135,000.00 and 190,000.00 are taxed at 37%
· Anything above $190,000.00 is taxed at 47%
These new changes are effective as of 1 July 2024 for the 2024-2025 tax year.
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