• T2 Subtotal

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    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    Write at T2 the amount of tax payable after C has been offset against B Gross tax.

    Label T2 cannot be less than zero.

    Work out the amount at T2 as follows:

    • if the amount at C is less than the amount at B (see example 7a)
      • take C away from B
      • write the result at T2
       
    • if the amount at C is more than or equal to the amount at B (see example 7b)
      • write zero at T2 and T5
      • copy the amount at E to I Remainder of refundable tax offsets.
       

    Example 7: Calculating T2 Subtotal

    Example 7a: Applying label C when gross tax is greater than offsets - a payable position

    Dark Blue Superannuation Fund has the following amounts entered into its Fund income tax return:

    Taxable income

    A

    $10,000

    Gross tax

    B

    $1,500

    Non-refundable non-carry forward tax offsets

    C

    $500

    Subtotal

    T2

    $1,000

    Refundable tax offsets

    E

    $0

    Tax payable

    T5

    $1,000

    Amount due or refundable

    S

    $1,000

    Dark Blue Superannuation Fund has an entitlement of $500 of non-refundable non-carry forward tax offsets to be used to offset against $1,500 gross tax, so:

    • tax payable has been reduced to $1,000
    • T5 will show $1,000 liability
    • the fund will show a $1,000 payable at S.

    Example 7b: Applying label C when gross tax is less than offsets - a nil position

    Light Blue Superannuation Fund has the following amounts entered into its Fund income tax return:

    Taxable income

    A

    $20,000

    Gross tax

    B

    $3,000

    Non-refundable non-carry forward tax offsets

    C

    $4,000

    Subtotal

    T2

    $0

    Refundable tax offsets

    E

    $0

    Tax payable

    T5

    $0

    Amount due or refundable

    S

    $0

    Light Blue Superannuation Fund has an entitlement of $4,000 of non-refundable non-carry forward tax offsets to be used to offset against $3,000 gross tax, so:

    • tax payable has been reduced to $0
    • Light Blue Superannuation Fund will have $1,000 (of non-refundable non-carry forward tax offsets) remaining that it will lose as tax payable has been reduced to $0
    • T5 will show $0
    • S will show $0, nil payable or refundable.
    Last modified: 08 Jun 2012QC 25835