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Details and sources
- Promised
- FAST launched its manifesto at Apita o Pisaga Hall, Salelologa, Savaiʻi, on Saturday 12 July 2025 1. Samoa Global News reported that day that FAST would raise the PAYE tax threshold from SAT$15,000 to SAT$20,000 for lower-income earners 3. PMN News on 19 August 2025 and a Samoa Observer summary on 28 August 2025, before the 29 August 2025 election, reported the same promise 45. PMN called it a tax-free threshold of SAT$20,000. The Observer called it no tax for those earning up to SAT$20,000 45. The Observer summary also called it tax relief for low-income earners 42. Talamua reported on 14 July 2025 that the 2025/2030 policies included tax exemptions to lift a worker's take-home pay to SAT$770 a fortnight within the SAT$20,000 salary bracket 2. SAT$20,000 over 26 fortnights is about SAT$769, so Talamua's figure fits a year's pay of SAT$20,000 with no tax taken 2. Other reports describe cash for the same income group instead. A Samoa Observer editorial on 13 July 2025 said families earning under SAT$20,000 a year would get monthly cash support of SAT$360 to SAT$770, depending on household size 6. RNZ Pacific on 22 July 2025 and Devpolicy on 25 August 2025 listed cash top-ups for families earning under SAT$20,000 78. The ABC on 23 August 2025 listed cash for low-income families among Laʻauli's promises 9. So sources disagree on what the SAT$770 figure is. In Talamua's report it is fortnightly take-home pay. In the Samoa Observer editorial it is the top monthly cash payment 26. We could not find the manifesto document itself. So its exact wording, and whether the cash support is a separate promise, are unconfirmed. The launch reports also included a cut from 27% to 23% in what Talamua called the employers income tax and Samoa Global News called company tax 1011. Samoa Global News also reported that the PAYE rate for higher earners would drop from 27% to 23% 12. We found no other outlet that reported this top-rate cut, so it is unconfirmed. No report we read gave a start date or a cost. The ABC reported on 23 August 2025 that it had hoped to ask Laʻauli how he would fund his promises, but he cancelled a planned interview 13. On 28 August 2026, as Prime Minister, his government's Press Secretariat said the manifesto's policies were calculated on the back of an improving economy 38. The Samoa Observer had called for a SAT$20,000 threshold in an editorial on 30 June 2024 14.
- What happened
- The 2025/26 budget address on 6 October 2025 kept the existing VAGST and income-tax rates 15. The 2026/27 budget address on 26 May 2026 again kept the current VAGST and income-tax rates 16. So the rates in force since 1 January 2018 still apply: no tax on income up to SAT$15,000, 20% on SAT$15,001 to SAT$25,000, and 27% above that 171819. The Ministry of Revenue's rates page still showed the SAT$15,000 tax-free amount when we checked it on 22 October 2026 17. The 2026/27 Approved Estimates expect PAYE income tax of SAT$108,564,991, up from SAT$92,749,082 in 2025/26, with no change to the threshold 2516. Parliament's list of bills and Acts for 2025 and 2026 shows no income-tax amendment 20. The only tax law it lists for those years removes a tax exemption for international companies. Parliament approved that law on 20 January 2026 2021. On 21 January 2026 the Samoa International Finance Authority said proposed changes to the Income Tax Act 2012 aim to move Samoa to a territorial tax system. The Authority's statement does not mention personal tax thresholds 22. On 28 August 2026 Talamua published a government Press Secretariat statement answering the Opposition Leader. The statement listed District Development Projects funding of SAT$2m a year and benefits for newborns and people aged 70. Its list of manifesto policies did not mention tax 23. On 15 September 2026 the Samoa Observer's one-year review listed tax cuts among the promises the Prime Minister took office with 24. The review said the government had delivered some social welfare commitments, while several of its biggest election pledges remain unfulfilled 43. The rest of the review is behind a paywall, so we could not read what it said about income tax. We found no statement by the Prime Minister or a minister on the SAT$20,000 threshold since the election, apart from the two budget addresses keeping the rates.
- Impact on families
- No worker has saved anything from this promise as of 22 October 2026, because the SAT$15,000 tax-free amount is unchanged 1617. Suppose the threshold rose to SAT$20,000 and the 20% band still ended at SAT$25,000. Then anyone earning SAT$20,000 or more would stop paying 20% on SAT$5,000 18. That is a saving of at most SAT$1,000 a year, about SAT$38 a fortnight 18. Someone earning between SAT$15,000 and SAT$20,000 would save 20% of what they earn above SAT$15,000 18. If the top rate also fell from 27% to 23%, as one outlet reported, people earning over SAT$25,000 would save a further 4 sene on each tala above SAT$25,000 1218. In May 2026 Cabinet approved a minimum wage of SAT$5.24 an hour from July 2026 26. At 40 hours a week for 52 weeks, that is about SAT$10,900 a year 26. This is under the SAT$15,000 line, so a full-time minimum-wage worker would gain nothing 2617. Even at SAT$6.05 an hour, due by July 2028, full-time pay is about SAT$12,600 a year, still under the line 2717. In 2022, almost 80% of paid employees earned under SAT$2,000 a month, which is under SAT$24,000 a year 30. The same 2022 survey put average gross pay for paid employees at SAT$1,620 a month, about SAT$19,440 a year 31. The survey does not show how many people earn between SAT$15,000 and SAT$20,000 3031.
- Cost
- We found no costing of this promise by FAST or the government. A Samoa Observer editorial on 13 July 2025 said FAST had failed to outline how it would finance its promises 36. The Samoa Observer's summary on 28 August 2025 said the FAST and HRPP tax plans had no position on how to make up the lost revenue 37. On 28 August 2026 the government's Press Secretariat said the manifesto's policies were calculated on the back of an improving economy. The statement gave no costing for the tax promises 3823. Our ceiling for the threshold rise alone: if each of the 28,616 people in formal employment in December 2025 saved the full SAT$1,000, the government would collect about SAT$28.6m a year less 2818. That is about a quarter of the SAT$108.6m in PAYE the 2026/27 estimates expect 25. It is about 1.9% of the SAT$1.5bn total spending planned for 2026/27 35. The real cost would be lower, because people earning under SAT$20,000 would save less and those under SAT$15,000 nothing 18. Sources point different ways on how much lower. The average formal wage in the year to December 2025 was SAT$40,022, well above SAT$20,000 29. But in 2022 almost 80% of paid employees earned under SAT$2,000 a month 30. The 2026/27 budget plans a cash deficit of about SAT$215.9m 34. For 2025/26 the budget planned a cash deficit of about SAT$210.9m 39. The ceiling leaves out the reported cuts to company tax and the top PAYE rate. We found no costing for either 1112.
- Verdict for families
- Cuts both ways
- Can it be done?
- Doable
- Long term
- Mixed long term
- Who deserves the credit
-
Started by an earlier government
This government has not changed income tax: both of its budgets kept the rates 1516. The SAT$15,000 tax-free amount families have today dates from 1 January 2018, set under the HRPP government that ruled until 2021 1744. On 4 January 2018 the Samoa Observer reported that Revenue Minister Tialavea Tionisio Hunt was unclear when asked how much money the government would lose from the change 4033. In the same interview he said: “Give and take and this year, the taxations of the Church Ministers is in effect” 41.
- Who gains
- If it were made law, formal-sector workers earning over SAT$15,000 would gain up to SAT$1,000 a year each, with the full SAT$1,000 going to everyone earning SAT$20,000 or more, high earners included 1828.
- Who pays
- The budget would give up as much as SAT$28.6m a year while planning a SAT$215.9m deficit, and people earning under SAT$15,000, including full-time minimum-wage workers, would get nothing 28183426.
- Assessment
- On the threshold alone, the saving is capped at SAT$1,000 a year, the same for a SAT$20,000 earner and a high earner 18. So it is worth more as a share of income to lower-paid workers. But it gives nothing to people earning under SAT$15,000, including full-time minimum-wage workers 1826. Poverty in 2023 was 16.5% in rural areas against 8.9% in towns 32. A threshold rise reaches only people with taxed pay, not families who live mainly outside formal pay 18. FAST paired it with a company-tax cut from 27% to 23%, which would go mostly to business owners 11. By one report it also promised a top-rate cut that would give high earners more, so the package lands as mixed 12. The threshold rise alone is affordable: its ceiling is under 2% of 2026/27 spending 35. But the 2026/27 budget already plans a SAT$215.9m deficit 34. So the lost revenue would have to be found elsewhere.
Sources (44)
- FAST Party Manifesto Centres on the Family Unit
- FAST Party Manifesto Centres on the Family Unit
- FAST Manifesto Promises Tax Cuts and Support to Industry
- All you need to know about the Sāmoa 2025 general elections
- What the three major parties are promising Samoa
- More promises, FAST and its manifesto
- Samoa election: Political parties make big promises on health, welfare and economy
- Gearing up for the 2025 Samoan general election
- Samoa's voters weigh cost of living, blackouts and political turmoil ahead of election
- FAST Party Manifesto Centres on the Family Unit
- FAST Manifesto Promises Tax Cuts and Support to Industry
- FAST Manifesto Promises Tax Cuts and Support to Industry
- Samoa's voters weigh cost of living, blackouts and political turmoil ahead of election
- Minimum wage increase should reflect the cost of living
- Budget Address 2025/2026
- Budget Address 2026/2027: “AIGA – Accelerating Inclusive Growth and Access”
- Rates – Ministry of Revenue
- Minister clears air on taxes
- Notice to Employers: Fortnightly and Annual Income Tax Rates Effective as of 1st January 2018
- Bills, Acts and Regulations – Parliament of Samoa
- Statement on Recent Legislative Developments in Samoa
- Statement on Recent Legislative Developments in Samoa
- POLITICAL OPINION: When Truth Becomes the Casualty of Political Power
- FAST Government one year on: What has been delivered and what remains
- Approved Estimates of Receipts and Payments of the Government of Samoa for the Financial Year Ending 30th June 2027
- Minimum wage increases by 40 cents
- Minimum wage increases by 40 cents
- Employment Report December 2025 Quarter
- Employment Report December 2025 Quarter
- 2022 Samoa Labour Force and Child Labour Survey
- 2022 Samoa Labour Force and Child Labour Survey
- Samoa Monetary Poverty Assessment 2023
- Minister clears air on taxes
- Budget Address 2026/2027: “AIGA – Accelerating Inclusive Growth and Access”
- Budget Address 2026/2027: “AIGA – Accelerating Inclusive Growth and Access”
- More promises, FAST and its manifesto
- What the three major parties are promising Samoa
- POLITICAL OPINION: When Truth Becomes the Casualty of Political Power
- Budget Address 2025/2026
- Minister clears air on taxes
- Minister clears air on taxes
- What the three major parties are promising Samoa
- FAST Government one year on: What has been delivered and what remains
- POLITICAL OPINION: When Truth Becomes the Casualty of Political Power
Is it funded?
No budget line
No line in the 2026/27 Approved Estimates funds this promise under any name. The estimates also show the 2025/26 figures 34. We searched their full text for 'threshold', 'tax-free', 'cash support', 'top-up' and 'low-income' and found no matching line 34. Both budget addresses kept income-tax rates, so no relief has been paid out or given up: SAT$0 12. The Ministry for Revenue receipts in the 2026/27 estimates expect PAYE of SAT$108,564,991, against SAT$92,749,082 in 2025/26 3. The income tax refunds line stays at SAT$10,000,000 in both years 4. The 2026/27 budget expects taxation revenue to rise 17%, supported in part by a proposed 3% rise in tobacco excise from 1 January 2027 5. The Samoa Observer reported that Parliament passed the 2026/27 budget, for SAT$1,090,053,981, just before midnight on Thursday 25 June 2026 6. The Observer said the budget had been tabled at SAT$1.5 billion 7. The budget address says its SAT$1.5 billion total includes development programmes co-funded by aid partners 8.
Sources (8)
- Budget Address 2025/2026
- Budget Address 2026/2027: “AIGA – Accelerating Inclusive Growth and Access”
- Approved Estimates of Receipts and Payments of the Government of Samoa for the Financial Year Ending 30th June 2027
- Approved Estimates of Receipts and Payments of the Government of Samoa for the Financial Year Ending 30th June 2027
- Budget Address 2026/2027: “AIGA – Accelerating Inclusive Growth and Access”
- Parliament passes budget
- Parliament passes budget
- Budget Address 2026/2027: “AIGA – Accelerating Inclusive Growth and Access”
What research says
Research is mixed
Pacific governments that raised tax-free thresholds counted large revenue costs 15. Papua New Guinea expected to give up K280.0m in revenue when it lifted its threshold to K20,000 in 2023 1. Its 2023 budget put the saving at about K63 a fortnight for all workers earning K20,000 or more. That is a flat cap, like the one Samoa's plan would have 2. The 2023 budget called it a temporary relief measure in a time of high world inflation 3. Papua New Guinea's 2024 budget gave an updated cost of K300m for the change 4. Fiji's revenue service said its rise from F$16,000 to F$30,000 in the 2017/18 budget cost F$26m in revenue straight away 5. The revenue service noted that taxpayers earning more than F$30,000 also saved 6. Tonga raised its tax-free level from T$10,000 to T$12,000 from 1 July 2021 7. An IMF paper on Pacific tax in September 2022 said a low tax-free threshold puts the tax burden on low-income earners and could discourage businesses from hiring lower-skilled workers 8. A 2023 World Bank review found that Samoa's 20% rate on its lowest taxed band is the highest of nine Pacific countries 9. The World Bank review warned that few tax brackets plus a high threshold can narrow the income-tax net 10. A February 2025 study of Papua New Guinea found its tax-free threshold made income tax more progressive 11. The study also found that a big rise in the lowest non-zero tax rate later made it less progressive 12. We found no study that measured how a threshold rise changed poverty or family incomes in a Pacific country. The evidence covers cost and tax design. It does not tell us anything about families who live outside formal pay.
Sources (12)
- 2023 National Budget
- 2023 National Budget
- 2023 National Budget
- 2024 National Budget, Volume 1
- Increase on Personal Income Tax Threshold
- Increase on Personal Income Tax Threshold
- Income Tax eased for Tongan individuals and sole traders from July 1
- Funding the Future: Tax Revenue Mobilization in the Pacific Island Countries
- Raising Pasifika: Strengthening Government Finances to Enhance Human Capital in the Pacific
- Raising Pasifika: Strengthening Government Finances to Enhance Human Capital in the Pacific
- Income tax in Papua New Guinea: changes over time
- Income tax in Papua New Guinea: changes over time
Cost and reach
The annual cost is an upper limit, not an official figure. It is the 28,616 people in formal employment in December 2025 times the largest possible saving of SAT$1,000 a year 12. SAT$1,000 is 20% of the SAT$5,000 between SAT$15,000 and SAT$20,000 2. The real figure would be lower, because workers earning under SAT$20,000 would save less and those under SAT$15,000 nothing 2. In 2022 almost 80% of paid employees earned under SAT$2,000 a month 3. But the average formal wage in the year to December 2025 was SAT$40,022 4. The ceiling is about a quarter of the SAT$108.6m in PAYE expected in 2026/27 5. We leave the number of people reached blank because no source we found counts workers earning over SAT$15,000.
Sources (5)
- Employment Report December 2025 Quarter
- Minister clears air on taxes
- 2022 Samoa Labour Force and Child Labour Survey
- Employment Report December 2025 Quarter
- Approved Estimates of Receipts and Payments of the Government of Samoa for the Financial Year Ending 30th June 2027
Helps: Wage workers · High earners
Paid for by: Future budgets and debt · Low-income families · Rural villages and Savaiʻi
All 2025 promises in Cost of living and tax →
Folafolaga · https://folafolaga.pages.dev/promises/fast-cost-tax-free-20000/ · Printed from the version last checked 23 October 2026. Every claim's source is listed on that page.