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  • T2 Subtotal

    Attention

    Warning:

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

    End of attention

    Show at T2 the amount of tax payable after C Non-refundable non-carry forward tax offsets has been offset against B Gross tax.

    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 C Non-refundable non-carry forward tax offsets when B 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 $1,000 payable at S.

    Example 7b: Applying C Non-refundable non-carry forward tax offsets when B 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-car ry 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.

    End of example
    Last modified: 13 Feb 2019QC 35420