Pacific Australia Labour Mobility scheme for new workers
From July 2023, the Seasonal Worker Programme (SWP) and the Pacific Labour Scheme (PLS) have been consolidated under the Pacific Australia Labour Mobility (PALM) scheme. This scheme applies to new workers employed from that date and is administered by the Department of Employment and Workplace Relations and the Department of Foreign Affairs and Trade.
The arrangements for existing workers employed under the SWP or the PLS will continue to apply. If you are on an SWP or PLS placement with a PALM scheme approved employer, use the information on this page.
Working under the SWP and the PLS
If you have a Temporary Work (International Relations) subclass 403 visa to work in Australia under the SWP or the PLS your employer will withhold tax from your pay. You may also need to lodge an income tax return in Australia each year.
You or your employer can check your visa status using the Visa Entitlement Verification Online systemExternal Link.
Your residency for tax purposes
For tax purposes in Australia, individuals will be either:
- an Australian resident
- a foreign resident.
Most people who come to Australia under the SWP are foreign residents for tax purposes. This is because workers in the SWP, consistent with their visa requirements, don't intend to stay in Australia. They only intend to work here for a short time and return home.
Most people who come to Australia under the PLS are Australian residents for tax purposes for the duration of their employment in Australia.
Whether you are a resident for tax purposes will depend upon your circumstances.
Tax and withholding in Australia
Before you receive your pay, your employer will withhold tax.
Foreign residents in the SWP
If you are a foreign resident worker under the SWP, your employer will withhold tax at the rate of 15% for each dollar you earn You're not required to lodge a tax return if you don’t earn income from any other sources in Australia.
Your SWP income is non-assessable, non-exempt income and you can't claim any deductions against this income.
Example: Foreign resident in the SWP
Malakai comes to Australia for 6 months on a 403 visa issued prior to 4 April 2022 under the SWP to pick walnuts in rural and regional locations. Malakai is a foreign resident for tax purposes in Australia.
Malakai takes up employment at a walnut farm in Moree in northern NSW. He is paid $28.26 per hour and guaranteed 8 hours for 5 days each week. As Malakai is a foreign resident working for a PALM scheme approved employer under the SWP, his employer will withhold 15% final tax from his salary and wages. Malakai’s weekly salary is calculated as:
- $28.26 per hour × 8 hours × 5 days = $1,130.40 per week
His employer withholds 15% = $169.56
Malakai’s take home pay each week is $960.84
Because Malakai is a foreign resident working under a 403 visa in the SWP and he does not earn income from any other sources in Australia, he is not required to lodge a tax return in Australia.
End of exampleAustralian residents in the PLS
You pay tax at the rate set out in the tables for residents of Australia if you are a resident of Australia for tax purposes. Your employer is required to withhold tax when they pay you. You are required to lodge a tax return.
Example: Australian resident in the PLS
Kane comes to Australia for 4 years on a 403 visa issued prior to 4 April 2022 under the PLS to pick fruit and nuts in rural and regional locations. Kane is an Australian resident for tax purposes in Australia.
Kane works at a cherry farm in Wangaratta, Victoria. He is paid $28.26 per hour and guaranteed 8 hours for 5 days each week. As Kane is an Australian resident, his PALM scheme approved employer will withhold tax from his salary and wages based on the resident tax rates. Kane’s weekly salary is calculated as:
$28.26 per hour × 8 hours × 5 days = $1,130.40 per week
His employer withholds tax and an amount for the Medicare levy = $207 per week
Kane’s take home pay each week is $923.40
Kane is required to lodge a tax return at the end of the tax year.
End of exampleStarting work in Australia
Before you start work in Australia, you should:
- apply for a tax file number
- complete a TFN declaration for your employer
- know your workplace rights.
Know your workplace rights
Everyone working in Australia has the same workplace rights under the National Employment StandardsExternal Link (NES).
The national minimum wage and NES make up the minimum employment entitlements that must be provided to all employees.
The Fair Work Ombudsman provides information on workplace rights and entitlements for visa holders and migrant workersExternal Link.
End of income year or finishing work
At the end of the income year or when you finish working in Australia, consider if you need to:
- Access your income statement
- Lodge a tax return
- Apply for a departing Australia superannuation payment (DASP).
Access your income statement
Your employer will usually provide an income statement through Single Touch Payroll (STP). It will show the amount you earned, tax withheld and superannuation that has been paid. You will be able to access and see your year-to-date tax and super information (income statement) in ATO online services through your myGov account from within Australia. If not, you can contact us.
If your employer is not yet using STP they will provide you with a payment summary showing the payments you received and tax amounts withheld for the income year.
Lodge a tax return
The Australian income year starts on 1 July and ends on 30 June the following year. Most individuals who earn income and had tax withheld during the income year need to lodge an income tax return.
You don't need to lodge a tax return or a non-lodgment advice if you're a foreign resident for tax purposes working in the SWP.
If you leave Australia permanently before 30 June, you can lodge your tax return early.
Apply for a departing Australia superannuation payment (DASP)
When you leave Australia and return to your home country, you can apply to have your super paid to you as a departing Australia superannuation payment (DASP).
You can apply after you leave Australia if you meet all DASP requirements.