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End of attention
Write at T5 the amount of tax payable after label E has been offset against label T2.
Label T5 cannot be less than zero.
Work out the amount at T5 as follows:
- if the amount at E is less than the amount at T2 (see example 9a)
- take E away from T2
- write the result at T5
- if the amount at E is more than or equal to the amount at T2 (see example 9b)
- take T2 away from E
- write the result at I
- write zero at T5.
Example 9: Calculating T5 subtotal
Example 9a: Applying label E when gross tax is greater than refundable tax offsets - a payable position
Dark Red Superannuation Fund has the following amounts entered into its Fund income tax return:
Taxable income
|
A
|
$40,000
|
Gross tax
|
B
|
$6,000
|
Non-refundable non-carry forward tax offsets
|
C
|
$2,000
|
Subtotal
|
T2
|
$4,000
|
Refundable tax offsets
|
E
|
$3,000
|
Tax payable
|
T5
|
$1,000
|
Section 102AAM interest charge
|
G
|
$200
|
Eligible credits
|
H
|
$250
|
Remainder of refundable tax offsets
|
I
|
$0
|
PAYG instalments raised
|
K
|
$750
|
Amount due or refundable
|
S
|
$200
|
Dark Red Superannuation Fund has an entitlement of $2,000 of non-refundable non-carry forward tax offset and $3,000 of refundable tax offset to be used to offset against $6,000 gross tax, so:
- tax payable has been reduced to $1,000 (T5)
- there is no refundable tax offset to be carried into I
- add the $200 (G) to the $1,000 (T5) to increase the liability to $1,200
- subtract the $250 (H) and the $750 (K) from the $1,200
- S will show a $200 liability.
Example 9b: Applying label E when gross tax is less than offsets - a refundable position
Light Red Superannuation Fund has the following amounts entered into its Fund income tax return:
Taxable income
|
A
|
$40,000
|
Gross tax
|
B
|
$6,000
|
Non-refundable non-carry forward tax offsets
|
C
|
$2,000
|
Subtotal
|
T2
|
$4,000
|
Refundable tax offsets
|
E
|
$5,000
|
Tax payable
|
T5
|
$0
|
Section 102AAM interest charge
|
G
|
$300
|
Eligible credits
|
H
|
$540
|
Remainder of refundable tax offsets
|
I
|
$1,000
|
PAYG instalments raised
|
K
|
$850
|
Amount due or refundable
|
S
|
$2,090
|
Light Red Superannuation Fund has an entitlement of $2,000 of non-refundable non-carry forward tax offsets and $5,000 of refundable tax offsets to be used to offset against $6,000 gross tax, so:
- tax payable has been reduced to $0 (T5)
- the $1,000 of refundable tax offsets remaining, is transferred to I
- add the $300 (G) to the $0 (T5) to increase the liability to $300
- subtract the $540 (H), $1,000 (I) and the $750 (K) from the $300
- S will show a $2,090 refundable amount.
Last modified: 13 Feb 2019QC 25835