Individual - Tax administration

Last reviewed - 22 January 2024

Taxable period

The tax year runs from 1 July to 30 June.

Tax returns

All persons liable to taxation, whether personally or in a representative capacity, are required to file returns within 120 days of 30 June. The Commissioner may allow an extension of time as deemed appropriate.

Payment of tax

Individuals in paid employment are subject to the pay-as-you-earn (PAYE) system.

Every provisional taxpayer (e.g. a company director who earns directors fees that are not subject to PAYE) is required to submit to the Commissioner, on the prescribed form, an estimate of the total tax payable for the year of assessment. The estimate of taxable income for provisional tax purposes should not be less than the taxable income assessed for the latest preceding year of assessment, for which an assessment has been issued not less than 21 days before the date the current estimate is made. This rule does not apply if the taxpayer can convince the Commissioner of Taxes that the taxable income for the current year will be less than the taxable income for the preceding year.

For individuals, the first payment must be made by 31 December and the second payment by 30 June; if a third top-up payment is required, this should be paid by 31 December of the following year (i.e. one year after the first provisional tax payment).

A provisional taxpayer becomes liable to pay a penalty if the estimate for taxable income for the second payment of provisional tax is found to be both less than 90% of the taxable income as finally determined and less than the taxable income as assessed for the immediately preceding tax year.