Senators yesterday approved amendments to cut payroll tax for all workers and many employers.

Crystal Caesar, the Minister of Education, said the Payroll Tax Amendment and Validation Act 2026 was a testament to the Governments’ commitment to building an economy that works for all.

Ms Caesar said the legislation would lower employee payroll tax for the first two income bands, which would mean that every worker on the island would see their payroll tax reduced.

Meanwhile, employer rates will either be reduced or remain unchanged.

Many of the 14 categories of employer payroll tax listed in the Budget Statement would be calculated at a lower rate and most will have rates of 7 per cent or less.

Large local companies with annual payroll greater than $1 million would see their rate decrease from 10 per cent to 9.5 per cent under the amendments, and international businesses with exempted undertakings can expect a reduction from 10.25 per cent to 9.75 per cent.

Victoria Cunningham, OBA senator, said the opposition supported the tax reductions, particularly for caregivers.

John Wight, independent senator, said that while the Bill may not be perfect, he was supportive of the structure and intent of the amendments.

Tawana Tannock, independent senator, said she also supported the intention of the legislation but questioned the wording of the payroll tax changes for self-employed caregivers, arguing that greater clarity was needed.

The Government Authorities (Fees) Amendment Order 2026, which increases the fees paid to those serve on Government boards, was also approved by senators.

The fees for chairmen will move from $100 to $160 and for board members it will increase from $50 to $80.

Ms Caesar said that board members make vital contributions to the island, and the increase was a “modest but significant” gesture of respect.

The Auxiliary Bicycles (Project Ride) Amendment Act 2026, to create a learner’s permit for Project Ride students, was also passed without objection

Students involved in the programme would be required to hold a $12 learner’s permit and their teachers would need to hold a $121-a-year instructor’s licence before teaching them.

Tarik Smith, OBA senator, said the Opposition supported the legislation but questioned why students could not obtain a learner’s permit until they are 16 rather than when they complete Project Ride.

Mischa Fubler, the Junior Minister for Tourism and Transportation, said the decision was made not to offer the permits to those under 16 to avoid potential misuse.

The Customs Tariff Amendment Act 2026, intended to lower the duty rate on building materials and supplies, eliminate customs duty on selected motor vehicle parts and lower the duty rate on selected goods deemed to be essential commodities, was also approved.

It will also lower the duty rate on fresh flowers, eliminate customs duty for diesel and fuel oils used by Belco for the production of electricity, introduce duty relief for goods for local professional musicians and participants in the Bermuda Day Parade.

Ms Caesar said overall, the amendment will have a $7.2 million impact.

Senators went on to approve the Health Insurance (Standard Health Benefit) Amendment Regulations 2026, which increase the standard premium rate — the government-set portion of premiums — will rise from $400.31 to $439.55.

The adjustment, the first increase in almost five years, is intended to help cover retroactive payments totalling $38 million being made to hospital staff as a result of salary negotiations.

The second of the two $19 million payments is due by April 30.

The Senate also approved the Health Insurance (Mutual Reinsurance Fund) (Prescribed Sum) Validation Act 2026, which was intended to retrospectively regularise payments made since the last rate increase.

The Corporate Income Tax Agency Amendment Act 2026, intended to clarify the finances of the titular agency and amend the community development tax credit was also approved.

Ms Caesar described the legislation as a “refinement” of the legislation that governs the agency to clarify available funding and strengthen its financial management framework.

Senators also approved the Economic Substance Amendment Act 2026, which transfers responsibility for the economic substance regime from the Registrar of Companies to the CITA.