Provisional tax is required to be paid by any taxpayer who in any income year derives assessable income other than from source deduction payments and their tax payable on the assessable income is over $1,000.

Payments of provisional tax are due in two equal installments during the income year.

On a standard balance date of 31 December the installments are due on 1 June and 1 December respectively.

The total amount of provisional tax payable is the terminal tax calculated in the preceding year, however provisional tax can be estimated in some circumstances.