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Tax withheld from a bonus

bonus_withholding
Read-onlyIdempotent

PAYG tax to withhold from a bonus, commission or other one-off payment made with a regular Australian pay, using ATO Schedule 5 Method A, for 2025-26 or 2026-27. Use it for 'how much tax comes out of my bonus'. Returns the tax on the bonus only, never more than 47% of it; work out the regular pay's withholding separately with payg_withholding. Amounts in AUD. Read-only and deterministic.

Tool call template

Replace each placeholder with a value matching the input schema. Only required parameters are included; add optional parameters as needed.

{
  "id": 1,
  "jsonrpc": "2.0",
  "method": "tools/call",
  "params": {
    "arguments": {
      "earnings": "<earnings>",
      "bonus": "<bonus>",
      "period": "<period>"
    },
    "name": "bonus_withholding"
  }
}

Input Schema

NameRequiredDescriptionDefault
bonusYesThe bonus or commission amount (AUD).
periodYesPay period.
payDateNoPay date (YYYY-MM-DD).
taxYearNoAustralian financial year (1 July to 30 June) whose withholding tables to use. Default 2026-27.
earningsYesRegular gross earnings for the pay period the bonus is paid with (AUD), excluding the bonus.
studyLoanNoHas a HELP, VSL, SSL or other study and training support loan. Default false.
tfnProvidedNoEmployee gave their tax file number. Default true. False applies the no-TFN rate.
periodsCoveredNoPay periods the bonus relates to, if less than a year.
foreignResidentNoForeign resident for tax purposes. Default false.
taxFreeThresholdNoTax-free threshold claimed with this employer. Default true (main job). Use false for a second job.

Schema Changelog

Changes observed during successful MCP inspections.

  1. First observed

TDQS

A4.3/5.0
Behavior4/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

Annotations already declare read-only, idempotent, non-destructive, closed-world behavior, and the description adds genuinely new context: the return value covers the bonus only and is capped at 47% of it. The closing 'Read-only and deterministic' largely restates the annotations, and it doesn't explain rounding or which parameters drive the cap, but the substantive disclosure is strong.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness4/5

Is the description appropriately sized, front-loaded, and free of redundancy?

Three dense sentences, front-loaded with purpose, then the return-value guarantee, then the sibling hand-off. The only wasted clause is 'Read-only and deterministic', which duplicates annotation content the agent already has.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness4/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

For a 10-parameter calculation tool with no output schema, the description supplies the critical missing piece — that the result is the bonus component only and is bounded at 47% — and names the correct method and tax years. It stops short of describing rounding or error conditions, but an agent has enough to call it correctly.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters3/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

Schema description coverage is 100%, so every parameter already carries its own meaning (earnings excludes the bonus, taxYear default, tfnProvided no-TFN rate, taxFreeThreshold for a second job). The description adds only the tax-year choice and the AUD unit, both of which the schema already states, so it sits at the baseline for a fully documented schema.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose5/5

Does the description clearly state what the tool does and how it differs from similar tools?

States a specific verb and resource ('PAYG tax to withhold from a bonus, commission or other one-off payment') and pins the method (ATO Schedule 5 Method A) plus the supported tax years. It explicitly carves out the sibling boundary by saying the regular pay's withholding is computed with payg_withholding, so an agent can separate it from payg_withholding and take_home_pay without opening a schema.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines5/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

Gives a plain-language use trigger ('how much tax comes out of my bonus') and an explicit routing rule: use payg_withholding for the regular pay component. It also scopes the tool to bonuses paid with a regular Australian pay, which implicitly excludes standalone or non-Australian calculations.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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