{"id":"F2007B01116","name":"Taxation Administration Act 1953 - PAYG withholding - Tax table for bonuses and similar payments (19/10/2004)","slug":"taxation-administration-act-1953-payg-withholding-tax-table-for-bonuses-and-similar-payments-19-10-2","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"repealed","isInForce":false,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":67888,"registerId":"commonwealth-F2007B01116-current","compilationNumber":null,"startDate":"2026-04-02","status":"Repealed","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Who should use this table?","sectionType":"part","heading":"Who should use this table?","content":"# Who should use this table?\n\nUse this table if you make a bonus or similar payment to a payee.","sortOrder":0},{"sectionNumber":"Bonus payment","sectionType":"part","heading":"Bonus payment","content":"## Bonus payment\n\nThis refers to payments usually made to an employee in recognition of performance or services and may be calculated as a percentage of the proceeds of the particular business transaction. These payments may not be related to a particular period of work.","sortOrder":1},{"sectionNumber":"Other similar payments","sectionType":"part","heading":"Other similar payments","content":"## Other similar payments\n\nThis refers to payments that are amounts of a one-off nature which do not relate to work performed in a particular period. Examples of these type of payments include:\n\n  a once only allowance payment made to an employee as compensation for a changed work location that is further away from their home, or\n  an amount paid as a sign-on bonus to a worker entering a workplace agreement.\n\nAny payments that are considered back payments of salary or wages are not covered by this table. Payers making back payments should refer to PAYG withholding tax tables – back payments including lump sum payments in arrears (NAT 3348-9.2004) to work out the amount to withhold.","sortOrder":2},{"sectionNumber":"Date of effect","sectionType":"part","heading":"Date of effect","content":"## Date of effect\n\nThe rules in this tax table replace the rules outlined in PAYG withholding tax tables – bonuses and similar payments (NAT 7905-6.2003).\n\nIf you cannot apply the rules contained in this tax table immediately, you may continue to use the old tax table until 30 June 2005.","sortOrder":3},{"sectionNumber":"How to work out the amount to withhold","sectionType":"part","heading":"How to work out the amount to withhold","content":"# Who should use this table?\n\nUse this table if you make a bonus or similar payment to a payee.\n\n## Bonus payment\n\nThis refers to payments usually made to an employee in recognition of performance or services and may be calculated as a percentage of the proceeds of the particular business transaction. These payments may not be related to a particular period of work.\n\n## Other similar payments\n\nThis refers to payments that are amounts of a one-off nature which do not relate to work performed in a particular period. Examples of these type of payments include:\n\n  a once only allowance payment made to an employee as compensation for a changed work location that is further away from their home, or\n  an amount paid as a sign-on bonus to a worker entering a workplace agreement.\n\nAny payments that are considered back payments of salary or wages are not covered by this table. Payers making back payments should refer to PAYG withholding tax tables – back payments including lump sum payments in arrears (NAT 3348-9.2004) to work out the amount to withhold.\n\n## Date of effect\n\nThe rules in this tax table replace the rules outlined in PAYG withholding tax tables – bonuses and similar payments (NAT 7905-6.2003).\n\nIf you cannot apply the rules contained in this tax table immediately, you may continue to use the old tax table until 30 June 2005.\n\n# \nHow to work out the amount to withhold\n\n## If the bonus or similar payment relates to work performed in a single pay period\n\nWhere the bonus or similar payment relates to work performed in a single pay period (for example one week or one month) the amount is added to all other earnings for the current period. An amount should then be withheld in accordance with the normal PAYG withholding tax tables.\n\n## If the bonus or similar payment relates to multiple pay periods\n\nWhere the bonus or similar payment relates to a period in excess of one pay period or is paid on an irregular basis, you should work out the correct amount to withhold using the steps below.\n\n 1 Use the relevant tax table to work out the amount to withhold from the payee’s normal earnings for one pay period.\n 2 Divide the bonus or similar payment by the number of pay periods to which it relates.\n 3 Disregard any cents. For example $1.75 becomes $1. If the result is nil, there is no amount to withhold on the bonus or similar payment.\n 4 Add the amount in step 3 to the normal earnings amount for a single period.\n 5 Use the same tax table used in step 1 to determine the amount to withhold on the combined payment amount calculated at step 4.\n 6 Subtract the amount worked out in step 1 from the amount worked out in step 5.\n 7 Multiply the result by the number of pay periods to which the bonus relates.\n\n| If the payment is a one-off payment and does not relate to a particular pay period or relates to a number of pay periods in excess of 12 months, for the purpose of this table, the payment is treated as being paid over a 12 month period. |\n| -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n\n \n\n# Examples\n\nThe following examples use Weekly tax table – incorporating Medicare levy with and without leave loading (NAT 1005) effective from 1 July 2004. The calculations are made using column 3, with tax-free threshold and no leave loading.\n\n```html\n

Example one

An employee whose weekly wage for the current period is $383.75 receives an end of year bonus of $45.

As the bonus relates to the full year of work, it equates to 52 weekly pay periods.

Step

Method

Result

1

Use the tax table to work out the withholding on $383.

$52

2

Divide the bonus by the number of pay periods to which it relates ie $45  52.

$0.86

3

As the final amount is less than $1, according to the tax tables you do not need to withhold an amount. There is no need to calculate any further steps.

$0

The total withholding on the payment of normal weekly pay of $383 plus the bonus of $45 is $52 (ie $52 + $0).

\n```\n\n \n\n```html\n

Example two

A company relocating premises pays an employee who is required to travel further to work a relocation payment of $520. Their weekly wage is $750. As the payment is one-off and does not relate to a particular pay period, the payment is spread over 52 weeks.

Step

Method

Result

1

Use the tax table to work out the withholding on $750.

$164

2

Divide $520 by 52.

$10

3

Add this to the normal weekly wage of $750.

$760

4

Use the tax table to work out the withholding on $760.

$167

5

Subtract the amount in step 1 from the amount in step 4.

$3

6

Multiply this amount by the number of pay periods ie $3 x 52.

$156

The total withholding on the payment of normal weekly pay of $750 plus the relocation payment of $520 is $320 (ie $164 + $156).

\n```\n\nPAYG withholding publications\n\nAll PAYG withholding tax tables and other PAYG publications can be accessed quickly and easily from [www.ato.gov.au](http://www.ato.gov.au)\n\nCopies of weekly and fortnightly tax tables are available from most newsagents. Newsagents also hold copies of the Tax file number declaration and the Withholding declaration.","sortOrder":4},{"sectionNumber":"If the bonus or similar payment relates ","sectionType":"part","heading":"If the bonus or similar payment relates to work performed in a single pay period","content":"## If the bonus or similar payment relates to work performed in a single pay period\n\nWhere the bonus or similar payment relates to work performed in a single pay period (for example one week or one month) the amount is added to all other earnings for the current period. An amount should then be withheld in accordance with the normal PAYG withholding tax tables.","sortOrder":5},{"sectionNumber":"Examples","sectionType":"part","heading":"Examples","content":"# Examples\n\nThe following examples use Weekly tax table – incorporating Medicare levy with and without leave loading (NAT 1005) effective from 1 July 2004. The calculations are made using column 3, with tax-free threshold and no leave loading.\n\n```html\n

Example one

An employee whose weekly wage for the current period is $383.75 receives an end of year bonus of $45.

As the bonus relates to the full year of work, it equates to 52 weekly pay periods.

Step

Method

Result

1

Use the tax table to work out the withholding on $383.

$52

2

Divide the bonus by the number of pay periods to which it relates ie $45  52.

$0.86

3

As the final amount is less than $1, according to the tax tables you do not need to withhold an amount. There is no need to calculate any further steps.

$0

The total withholding on the payment of normal weekly pay of $383 plus the bonus of $45 is $52 (ie $52 + $0).

\n```\n\n \n\n```html\n

Example two

A company relocating premises pays an employee who is required to travel further to work a relocation payment of $520. Their weekly wage is $750. As the payment is one-off and does not relate to a particular pay period, the payment is spread over 52 weeks.

Step

Method

Result

1

Use the tax table to work out the withholding on $750.

$164

2

Divide $520 by 52.

$10

3

Add this to the normal weekly wage of $750.

$760

4

Use the tax table to work out the withholding on $760.

$167

5

Subtract the amount in step 1 from the amount in step 4.

$3

6

Multiply this amount by the number of pay periods ie $3 x 52.

$156

The total withholding on the payment of normal weekly pay of $750 plus the relocation payment of $520 is $320 (ie $164 + $156).

\n```\n\nPAYG withholding publications\n\nAll PAYG withholding tax tables and other PAYG publications can be accessed quickly and easily from [www.ato.gov.au](http://www.ato.gov.au)\n\nCopies of weekly and fortnightly tax tables are available from most newsagents. Newsagents also hold copies of the Tax file number declaration and the Withholding declaration.","sortOrder":7}],"analysis":{"kimi_summary":{"_metrics":{"model":"kimi-k2.5","source":"moonshot-realtime","completionTokens":2049},"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"This instrument is a direct replacement of the previous tax table (NAT 7905-6.2003) and maintains the same functional scope: providing specific calculation methods for PAYG withholding on bonus and similar one-off payments. It does not expand into new areas of taxation or alter the fundamental approach to taxing these payments."},"complexity_factors":["7-step calculation methodology required for multi-period bonus payments","Requirement to disregard cents in intermediate calculations (step 3)","Special 12-month spreading rule for one-off payments unrelated to specific periods","Dependence on external weekly or fortnightly tax tables for base calculations"],"plain_english_summary":"Employers paying bonuses, sign‑on incentives or one‑off allowances must use these instructions to calculate PAYG withholding so lump sums aren’t under‑taxed. It sets which payments are covered and gives two practical approaches — treat payments tied to a single pay period with normal withholding, or use an averaging method for amounts spread over multiple periods (capped at 12 months). It replaces the 2003 guidance, with a short transitional allowance."},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The text replaces an earlier PAYG bonuses table (refers to NAT 7905-6.2003) but remains focused on withholding for bonuses and similar one‑off payments. The document gives procedural changes for calculating withholding rather than expanding or narrowing the classes of payments covered; there is no clear evidence in the supplied text that the subject matter scope was broadened or narrowed."},"complexity_factors":["Two distinct treatments to select between: single pay period vs multiple/irregular periods (see heading 'If the bonus or similar payment relates to work performed in a single pay period' and '...multiple pay periods').","Seven-step arithmetic procedure for multi-period payments including division, cent-disregard (rounding down), addition, table lookup, subtraction and multiplication (see steps 1–7 under 'How to work out the amount to withhold').","Dependency on other PAYG tax tables for actual withholding amounts — the instructions require using the 'relevant tax table' (steps 1 and 5) rather than providing tax rates directly.","Classification burden: payer must determine whether a payment is a bonus/similar payment or a back payment (back payments are excluded and routed to a different table — 'Any payments that are considered back payments ... are not covered').","Special rule for one‑off payments or payments covering >12 months: treat as paid over 12 months (see box under the steps).","Rounding rule (disregard cents) can produce a nil withholding result for small payments, increasing edge‑case complexity (step 3).","Operational risk: manual arithmetic across pay periods and lookups increases chance of payroll errors and recordkeeping/verification work (implied by multi-step method and examples)."],"plain_english_summary":"Mechanically, this ATO tax table tells payers (employers or other payers) how much PAYG to withhold from bonuses and other one‑off payments. Single‑period bonuses are added to that period’s earnings and taxed per the normal PAYG tables; multi‑period or irregular payments use a seven‑step averaging, rounding and subtraction method, with one‑offs or periods over 12 months treated as paid over 12 months.\n\nWho pays: the payer withholds. Who decides: the payer applies the ATO tax tables. Behaviour change: payroll must classify payments and follow the specified arithmetic steps to calculate withholding."}},"importantCases":[],"_links":{"self":"/api/acts/taxation-administration-act-1953-payg-withholding-tax-table-for-bonuses-and-similar-payments-19-10-2","history":"/api/acts/taxation-administration-act-1953-payg-withholding-tax-table-for-bonuses-and-similar-payments-19-10-2/history","analysis":"/api/acts/taxation-administration-act-1953-payg-withholding-tax-table-for-bonuses-and-similar-payments-19-10-2/analysis","conflicts":"/api/acts/taxation-administration-act-1953-payg-withholding-tax-table-for-bonuses-and-similar-payments-19-10-2/conflicts","importantCases":"/api/acts/taxation-administration-act-1953-payg-withholding-tax-table-for-bonuses-and-similar-payments-19-10-2/important-cases","documents":"/api/acts/taxation-administration-act-1953-payg-withholding-tax-table-for-bonuses-and-similar-payments-19-10-2/documents"}}