How Is a Bonus Taxed in Australia?

Bonuses and commissions are ordinary income. They stack on top of your salary and are taxed at your marginal rate - for 2026-27 that is 30% between $45,001 and $135,000, 37% to $190,000 and 45% above, plus the 2% Medicare levy for most residents.

Employers withhold PAYG on lump sums using ATO schedules. Depending on the method, a one-off bonus can be withheld as if you earn that much every pay, pushing the withholding rate above your true annual rate. The difference is not lost - it washes out as a refund at tax time.

Bonuses are generally ordinary time earnings, so your employer must pay 12% Super Guarantee on them (overtime pay generally does not attract super). Check the super line on the payslip that includes your bonus.

A big bonus can push your repayment income over the HELP/STSL threshold ($69,528 for 2026-27) or the Medicare levy surcharge threshold ($105,000 single) - use the calculator to model the full year including your bonus.

The bonus pay itself shows a large PAYG line, because withholding is set from your normal earnings rather than your annual position. What you actually pay is settled in your assessment: the bonus is added to your taxable income for the year and taxed at your marginal rate, and the difference is refunded. Model the full year, including the bonus, in the PAYG withholding calculator rather than reading one payslip in isolation.