Bonus vs Salary Increase: Which Is Better After Tax?
Compare one-off bonus income with a permanent salary increase using after-tax thinking.
Bonuses can be withheld differently
Payroll may withhold tax from a bonus using a method that feels high or low at the time. Your final annual tax position depends on total taxable income.
Salary increases compound over time
A permanent raise can lift future super contributions, leave loading calculations and next negotiation baselines.
Use the calculator both ways
Estimate your annual salary, then add the bonus or raise amount and compare the change in take-home pay.
Common questions
Are bonuses taxed more in Australia?
A bonus is not a separate permanent tax class, but withholding can look different from ordinary pay.
Should I prefer a raise or bonus?
A raise is usually stronger for recurring income, while a bonus may suit one-off performance or company results.