Provisional Tax Dates

New to business and not sure when you will be due for paying tax? Below we will explain the tax due dates for most small business who we work with

Provisional tax helps you manage your income tax. You pay it in instalments during the year instead of a lump sum at the end of the year.

You'll have to pay provisional tax if you had to pay more than $5,000 tax at the end of the year from your last return. It’s payable the year following your tax return.

• 28 August

  First provisional tax payment due

• 15 January

  Second provisional tax payment due

• 7 May

  Third provisional tax payment due

• 7 February

  Terminal tax without EOT due

• 7 April

  Terminal tax with EOT due (majority of people)

Here’s a working example of when the tax may be due:

Starts business on 7 July 2023 (ie with the financial year ending 31 March 2024).

First tax return filed in July 2024, for the year ending 31 March 2024. Tax bill for the year is $15,000

Terminal (final) tax bill due 7 April 2025 - $15,000

Provisional tax due over three installments. Provisional tax is calculated (more or less) as the 2025 tax bill plus 5%. Total provisional tax to pay for FY2025 is $15,750.

$5,250 is due 28 August 2024, 15 January 2025 and 7 May 2025.

If the 2024 tax return was filed after the first provisional tax payment has passed (ie between 28 August 2024 and 15 January 2025), the provisional tax amount is split over the two remaining provisional due dates. If the return is filed after 15 January 2024 (and with a tax agent is due for filing by 31 March 2025), then the full amount of provisional tax would be due 7 May 2025.

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Student Loan Payment Dates

If you still have a student loan, it is due on the same dates as above.

The amount of student loan you must repay is calculated from your income. Your end-of-year repayment is 12% of every dollar you earn over the student loan repayment threshold (for 2024 this threshold is $22,828).

Example:

In the 2024 year you have total income (before tax) of $70,000.

Student loan to repay: ($70,000-$22,828)*12% = $5,660.64 due 7 April 2025

Provisional student loan repayments are calculated in the same way as provisional tax. $5,660.64 + 5% = $5,943.67 or $1,981.22 per provisional tax period.