--- title: How timing turned an Aussie's tax-free bonus into a taxing hole! description: Discover how a late 'milestone bonus' provides a powerful lesson on the influence of timing of international remunerations payment and Australian tax. image: https://trekkadvisory.com.au/hubfs/Webpages%20Images/px-tax-accountants-in-brisbane-1.jpg --- [!["Trekk Advisory" logo: bold black "Trekk" in modern font with smaller red "ADVISORY" below on a white background.](https://trekkadvisory.com.au/hs-fs/hubfs/Logos/trekk-advisory-logo-black%201.png?width=150&height=75&name=trekk-advisory-logo-black%201.png "\"Trekk Advisory\" logo: bold black \"Trekk\" in modern font with smaller red \"ADVISORY\" below on a white background.")](https://trekkadvisory.com.au) - [Featured services](https://trekkadvisory.com.au/how-we-help) - [Business accounting](https://trekkadvisory.com.au/small-business-accountants) - [Clarity Bookkeeping](https://trekkadvisory.com.au/clarity-bookkeeping) - [Xero cloud accounting](https://trekkadvisory.com.au/xero-cloud-accounting) - [Advice + business advisory](https://trekkadvisory.com.au/business-advisory-services) - [Tax minimisation + planning](https://trekkadvisory.com.au/tax-minimisation-and-planning) - [Self-managed super funds](https://trekkadvisory.com.au/self-managed-super-funds) - [Business Valuations](https://trekkadvisory.com.au/business-valuations) - [How we help](https://trekkadvisory.com.au/how-we-help) - [Understand your numbers](https://trekkadvisory.com.au/how-we-help/understanding) - [Grow your numbers](https://trekkadvisory.com.au/how-we-help/growth) - [Leverage your numbers](https://trekkadvisory.com.au/how-we-help/leverage) - [Who we are](https://trekkadvisory.com.au/our-team) - [Resources](https://trekkadvisory.com.au/information-centre) - [Get in touch](https://trekkadvisory.com.au/contact) - QLD - [Brisbane](https://trekkadvisory.com.au/brisbane) - [Gympie](https://trekkadvisory.com.au/gympie) - [North Queensland](https://trekkadvisory.com.au/north-queensland) - [Rockhampton](https://trekkadvisory.com.au/rockhampton) - NSW - [Northern Rivers](https://trekkadvisory.com.au/northern-rivers) [Download: Success Checklist](https://trekkadvisory.com.au/business-success-checklist) ![Close up of writing on a business notepad ](https://trekkadvisory.com.au/hubfs/Webpages%20Images/px-tax-accountants-in-brisbane-1.jpg) September 18, 2023 By Jess Kitchin # How timing turned an Aussie's tax-free bonus into a taxing hole! ##### Share: - - - In both business and taxation, timing is often the unsung hero that quietly shapes outcomes. A recent tax case is a stark reminder of this reality. Our saga begins with a taxpayer stationed in Kuwait for a non-residential work assignment. As he navigated the complexities of a new job, there was the promise of a significant 'milestone bonus', a motivating beacon of hard-earned rewards to come. However, unforeseen circumstances delayed the employer from disbursing the bonus at the agreed-upon time, a situation as unpredictable as sandstorms in the Kuwaiti desert. When his work ended, our man picked up his adventure hat and decided to head down under – calling Australia home, and gaining resident status. Post-migration, his performance bonus finally arrived, albeit belatedly and parceled over a series of payments. Wherein the plot thickens was when the ATO stepped in, issuing amended tax assessments that deemed these bonus payments taxable. The crux of the dispute orbits around the time the milestone bonus was derived. A generally accepted axiom is that non-residents are only taxed in Australia for income earned within the country. This establishes a clear implication—if the bonus had been received by our taxpayer while in Kuwait, Australian taxation would have been irrelevant. However, the ATO posits that employment income is typically derived on receipt—when it's physically received by the taxpayer—not when the promise of it is made. Therefore, since our taxpayer became an Australian resident at the time of receipt, the bonus, now deemed employment income, becomes subject to taxation. This twist in the narrative underlines the significant influence of timing on taxation matters. Had the bonus been paid on schedule in Kuwait—a country without income tax—our taxpayer would have enjoyed his reward tax-free. Instead, a delayed payment rendered the bonus taxable, highlighting an intricate crossover of international taxation and timing. In the realm of business, aligning tax-affairs with the pulse of time could be your most potent strategy. If questions about overseas income or tax residency create a cloud of uncertainty, remember the professionals at your side, ready to guide and support. Tax matters may get tricky, but with the right experts alongside, every twist and turn could lead to growth and understanding. #### About Author [Jess Kitchin](https://trekkadvisory.com.au/information-centre/author/jess-kitchin) Jess is our marketing gal for all Trekk offices, locations, and projects. There's usually a large buzz of projects and activities across all the offices that she's juggling too kick our marketing goals! She started in our Mount Isa office all the way back in 2010 and spent a couple years working and studying full time to gain her Bachelor in Business (Management & Marketing) which assisted her to rise as our Marketing Director. Outside of work she's a bit of a book-worm, often challenging herself to read a book a week. Her favourite genres are historical fiction, psychological thrillers and fantasy. She's got a small group of friends that she usually enjoys a 'Friday wine' or two with, and is a bit artsy - So she might zen out to some doodling, or volunteer for local organisations to do their graphic design. #### Related Posts [![Two Trekk Advisory team members in hard hats talking at a construction site.](https://trekkadvisory.com.au/hubfs/Blog%20Images/ato-prefill-contractors-tpar-sept-blog.png)](https://trekkadvisory.com.au/information-centre/new-ato-pre-fill-for-contractors-the-gaps-you-still-need-to-fill) September 19, 2026 #### [New ATO Pre-Fill for Contractors: The...](https://trekkadvisory.com.au/information-centre/new-ato-pre-fill-for-contractors-the-gaps-you-still-need-to-fill) For the first time, contractors in certain industries will see their income partly filled in for... [Read More](https://trekkadvisory.com.au/information-centre/new-ato-pre-fill-for-contractors-the-gaps-you-still-need-to-fill) [![A Trekk Advisory team member writing in a notebook at a desk.](https://trekkadvisory.com.au/hubfs/Blog%20Images/instant-asset%20write-off-sept-blog.png)](https://trekkadvisory.com.au/information-centre/20000-instant-asset-write-off-is-now-permanent-heres-the-detail) September 18, 2026 #### [$20,000 Instant Asset Write-Off Is Now...](https://trekkadvisory.com.au/information-centre/20000-instant-asset-write-off-is-now-permanent-heres-the-detail) A Bill that many small business owners have been watching closely has now passed into law. [Read More](https://trekkadvisory.com.au/information-centre/20000-instant-asset-write-off-is-now-permanent-heres-the-detail) [![Two colleagues at Trekk Advisory - North Queensland office chatting at a desk in a bright, plant-filled office with glass walls.](https://trekkadvisory.com.au/hubfs/sharing-economy-1.png)](https://trekkadvisory.com.au/information-centre/sharing-economy-income-and-tax-what-to-declare-and-how-to-stay-compliant) August 21, 2026 #### [Sharing Economy Income and Tax: What to...](https://trekkadvisory.com.au/information-centre/sharing-economy-income-and-tax-what-to-declare-and-how-to-stay-compliant) The sharing economy has opened up genuine income opportunities for a lot of Australians. Driving... [Read More](https://trekkadvisory.com.au/information-centre/sharing-economy-income-and-tax-what-to-declare-and-how-to-stay-compliant) ## Subscribe our newsletter to get latest news & updates Lorem ipsum dolor sit amet consectetur adipiscing elit [![trekkadvisory.com.auhs-fshubfsLogostrekk-advisory-logo-white](https://trekkadvisory.com.au/hs-fs/hubfs/social-suggested-images/trekkadvisory.com.auhs-fshubfsLogostrekk-advisory-logo-white.png?width=200&height=100&name=trekkadvisory.com.auhs-fshubfsLogostrekk-advisory-logo-white.png "trekkadvisory.com.auhs-fshubfsLogostrekk-advisory-logo-white")](https://trekkadvisory.com.au) Trekk Advisory exists to harness the power of numbers, nouse and know-how to boost your business, and guide you to your great. ###### Three stages that are key to your business: - [01 Understand your numbers](https://trekkadvisory.com.au/how-we-help/understanding) - [02 Grow your numbers](https://trekkadvisory.com.au/how-we-help/growth) - [03 Leverage your numbers](https://trekkadvisory.com.au/how-we-help/leverage) ###### Featured services - [Business accounting](https://trekkadvisory.com.au/small-business-accountants) - [Xero cloud accounting](https://trekkadvisory.com.au/xero-cloud-accounting) - [Advice + advisory](https://trekkadvisory.com.au/business-advisory-services) - [Tax minimisation + planning](https://trekkadvisory.com.au/tax-minimisation-and-planning) - [Self-managed super funds](https://trekkadvisory.com.au/self-managed-super-funds) - [Business Valuations](https://trekkadvisory.com.au/business-valuations) - [Full list of services](https://trekkadvisory.com.au/how-we-help) ###### Contact Us - [Brisbane QLD](https://trekkadvisory.com.au/brisbane) - [(07) 3378 7733](tel:+61733787733) - [Gympie QLD](https://trekkadvisory.com.au/gympie) - [(07) 5482 7655](tel:+61754827655) - [North Queensland](https://trekkadvisory.com.au/north-queensland) - [(07) 4773 7555](tel:+61747737555) - [Northern Rivers NSW](https://trekkadvisory.com.au/northern-rivers) - [(02) 5601 9900](tel:+61256019900) - [Rockhampton QLD](https://trekkadvisory.com.au/rockhampton) - [(07) 4922 2280](tel:+61749222280) © Trekk Advisory 2026. Liability limited by a scheme approved under professional standards legislation. All rights reserved. ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Jess Kitchin", "url" : "https://trekkadvisory.com.au/information-centre/author/jess-kitchin" }, "dateModified" : "2023-09-28T05:10:08.265Z", "datePublished" : "2023-09-18T05:09:00.000Z", "headline" : "How timing turned an Aussie's tax-free bonus into a taxing hole!", "image" : [ "https://trekkadvisory.com.au/hubfs/Webpages%20Images/px-tax-accountants-in-brisbane-1.jpg" ], "mainEntityOfPage" : { "@id" : "https://trekkadvisory.com.au/information-centre/how-timing-turned-an-aussies-tax-free-bonus-into-a-taxing-hole", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://trekkadvisory.com.au/hubfs/Logos/trekk-advisory-logo-black%201.png" }, "name" : "Trekk Advisory" } } ``` ```json { "@context" : "http://schema.org", "@type" : "Corporation", "address" : { "@type" : "PostalAddress", "addressCountry" : "Australia", "addressLocality" : "Newmarket", "addressRegion" : "QLD", "postalCode" : "4051", "streetAddress" : "8 Edmondstone St PO Box 3096" }, "alternateName" : "Trekk-Advisory", "description" : "A new generation of accountants, advisors,  supporters and  wingmen.", "email" : "hello@trekk.accountants", "image" : "https://21206577.fs1.hubspotusercontent-na1.net/hubfs/21206577/Logo%20(New%20Website)/trekk-favicon-large.png", "logo" : "https://21206577.fs1.hubspotusercontent-na1.net/hubfs/21206577/Logos/trekk-advisory-logo-black%201.png", "mainEntityOfPage" : { "@id" : "https://trekkadvisory.com.au/information-centre/how-timing-turned-an-aussies-tax-free-bonus-into-a-taxing-hole", "@type" : "WebPage", "description" : "Discover how a late 'milestone bonus' provides a powerful lesson on the influence of timing of international remunerations payment and Australian tax." }, "name" : "Trekk Advisory", "sameAs" : [ "https://au.linkedin.com/company/trekk-advisory" ], "telephone" : "(07) 3378 7733", "url" : "http://trekkadvisory.com.au" } ```