Bonus · Guide

Tax on a $3,000 Bonus in Australia (2025-26)

A $3,000 bonus is not taxed at a special final rate. These examples compare its simplified annual tax effect with ATO Schedule 5 Method A withholding on a fortnightly pay cycle.

$3,000 bonusSchedule 5 Method AFortnightly cycle

Quick answer

A $3,000 bonus forms part of annual taxable income. Schedule 5 withholding is a payroll prepayment, while the annual tax effect depends on where the bonus falls across the brackets, LITO and Medicare levy settings.

Worked examples for a $3,000 bonus
Base salary Actual tax on bonus PAYG withholding Withholding difference Effective bonus tax rate
$70,000 salary $960 $988 +$28 32.0%
$100,000 salary $960 $936 −$24 32.0%
$150,000 salary $1,170 $1,144 −$26 39.0%
What this bonus example means

A positive difference means Method A withholding is above this simplified annual estimate; a negative difference indicates a possible shortfall. Neither result alone predicts your final refund or bill.

This example uses a fortnightly pay cycle, assumes the tax-free threshold is claimed and excludes HELP, MLS, family Medicare adjustments, other offsets, deductions and other income.

What to know about bonuses in this range

Bonuses under $5,000 are common for performance payments, Christmas bonuses, and sign-on incentives. Schedule 5 withholding and the final annual tax effect may differ, but the direction and size depend on salary, pay frequency and the rest of the employee's tax position.

Compare withholding before assuming a refund

Method A spreads a whole-year or undefined-period bonus across the annual pay periods before comparing ordinary withholding. A positive difference in this calculation does not guarantee a tax refund once all income and adjustments are included.

Salary sacrifice if your employer allows it

If your employer offers salary sacrifice on bonuses, directing even a small bonus into super saves tax at your marginal rate (up to 47%) while paying only 15% contributions tax inside super. But check whether the sacrifice must be arranged before the bonus is earned — most employers require this. Use calculator →

Related bonus tax examples

Need your own numbers? Use the Bonus Tax Calculator and compare it with the Salary Sacrifice Calculator if you are considering super contributions.

Related tools