Example 9a: Applying E Refundable tax offsets when B 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:

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 E Refundable tax offsets when B Gross tax is less than offsets – a refundable position

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

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.