You might not be organized enough to find the right gift for your team, and the best way to reward them would be with a cash bonus. Christmas bonuses are given at the discretion of the employer and are not usually performance-based or part of a salary package. However, please be mindful that these bonuses are considered part of the employees' regular salary and wage income.

Your staff will have to pay taxes on this bonus, so remember to deduct PAYG Withholding and pay your team the net amount in cash. You might even want to consider deducting PAYG Withholding at their marginal tax bracket to help them avoid a tax debt when they complete their next tax return.

Christmas bonuses are considered Ordinary Time Earnings (OTE) for superannuation. Please remember that you have to pay 11% superannuation on the gross amount of the Christmas Bonus.

The best approach is to offer a bonus inclusive of superannuation and tax. This way, your expenses are capped, and you can make the appropriate payments as required. I remember receiving a $1,000 bonus back in the days when I still had a HELP debt. Once superannuation and tax (including HELP) was deducted, I received about $475.