Provisional Tax Threshold reduced
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.
Before covid19, you had to pay provisional tax if you had to pay more than $2500 tax at the end of the year from your last return.
Now, because of COVID-19 the government increased the threshold from $2500 to $5000.
This means that some small taxpayers may no longer have to pay provisional tax, and this will help them recover from COVID19 impact.
Please talk to us if you need to discuss this further.