Why was my bonus taxed at a higher rate?

(Newbie)Newbie

4 July 2025

I am puzzled about something and need some help with how to represent this on my tax return.

I am on a salary of 180k a year, which typically equated to 10k monthly pay with the PAYG tax being about 5k a pay. EOFY i received a 30k bonus and the ATO took 14k of this. Which i guess is the 47% tax bracket.

Just wondering how is this fair? I am not normally on the 47% tax bracket AND this is not my annual income. Its a one off bonus. Pretty depressing to see it disappear.

How can i represent this on my tax return?

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DamienATO

(Community Support)Community Support

8 July 2025

Hi @paul4peel,

There may be a section to include bouses or lump sum payments within your tax return, otherwise include the amount in your income section.

It does sound like your employer withheld tax at the maximum marginal tax rate (45%). This is due to the bonus pushing that amount above the $190,000 threshold. If you want to do some maths, we have a guide on working out withholding amounts or the simpler income tax calculator.

At the end of the day, it all gets calculated when you lodge your tax return and if too much tax has been withheld, then you'll be entitled to a refund :)

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