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Priority of use of the tax offsets

Last updated 12 February 2019

Funds have access to two types of tax offsets:

  • non-refundable non-carry forward tax offsets
  • refundable tax offsets.

The first category of tax offsets to be applied against gross tax is C Non-refundable non-carry forward tax offsets. As the name of this category suggests, if the tax offsets are greater than the gross tax, the excess of offsets is lost. If gross tax is greater than the offsets at C the remaining tax is shown at T2 Subtotal.

The second category of offsets is E Refundable tax offsets. If refundable tax offsets exceeds the remaining tax payable at T2 the excess is refundable to the fund or available to offset against other amounts payable and is shown at I Remainder of refundable tax offsets. If refundable tax offsets is less than the remaining tax payable at T2 the shortfall becomes the tax payable amount at T5 Tax Payable.

Any amount at G Section 102AAM interest charge is payable and will increase the T5 amount. KPAYG instalments raised, rather than just paid, on activity statements and other credits included under H Eligible credits along with any amount at I Remainder of refundable tax offsets will be applied against the tax payable amount to determine the amount due by the fund or refundable to the fund.

QC35420