Tax Administration Act 1994

Transfers of excess tax - Application of transfer rules to excess provisional tax

173P: Transfer of excess provisional tax if provisional tax paid is more than taxpayer's provisional tax liability, determined before assessment

You could also call this:

"Getting a refund if you overpay your provisional tax"

Illustration for Tax Administration Act 1994

You pay provisional tax if you earn income that is not taxed at the source. If you pay more provisional tax than you need to, you can transfer the excess. This happens when you or your agent asks for a transfer under section 173L, section 173M(2)(a) to 173M(2)(f), or section 173M(3), and you have paid too much provisional tax for a tax year. You can calculate the excess provisional tax using a formula. The formula is: provisional tax paid minus refunds minus provisional tax liability. The Commissioner will not transfer the excess if it means you will not pay enough provisional tax for the tax year. The Commissioner can transfer the excess back to your account if you ask for it. This is so you can pay your provisional tax liability on a later date, known as date B, as required under Part 6.

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This page was last updated on 28 November 2025

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Topics:

Money and consumer rights > Taxes

173O: Transfer of excess tax if no date specified by taxpayer, or

"What happens to excess tax if you don't choose a date"

173Q: Transfer of excess provisional tax if taxpayer estimates or revises estimate of residual income tax, determined before assessment, or

"Transferring extra provisional tax you've already paid"

Part 10BTransfers of excess tax
Application of transfer rules to excess provisional tax

173PTransfer of excess provisional tax if provisional tax paid is more than taxpayer's provisional tax liability, determined before assessment

This section applies in respect of excess provisional tax if—
a taxpayer or their agent requests a transfer allowed by section 173L, section 173M(2)(a) to 173M(2)(f), or section 173M(3); and
on the date that the Commissioner actions the request, the taxpayer has paid more provisional tax for a tax year than the provisional tax payable by that date; and
the request is actioned before an assessment is made under Part 6.

The excess provisional tax that may be transferred on a particular date (date A) is calculated according to the formula:
$provisional tax paid − refunds − provisional tax liability$

Where:
The Commissioner must not transfer an amount on date A if, as a result, the taxpayer would not satisfy their provisional tax liability in respect of the tax year on a date (date B) that falls after date A, unless the taxpayer requests a transfer back to their account to satisfy their provisional tax liability on date B.

Notes

Section 173P: inserted, on 17 October 2002, by section 91(1) of the Taxation (Relief, Refunds and Miscellaneous Provisions) Act 2002 (2002 No 32).
Section 173P(1)(b): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 173P(2): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).
Section 173P(2) formula item provisional tax paid paragraph (a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, unless the context requires otherwise), by section ZA 2 of the Income Tax Act 2007 (2007 No 97).
Section 173P(3): amended, on 1 April 2005 (effective for 2005–06 tax year and later tax years, except when the context requires otherwise), by section YA 2 of the Income Tax Act 2004 (2004 No 35).