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TAX CHANGES

!!! 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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