• #### E4 Exploration Credits Tax Offset

Show at E4 the amount of exploration credits received during the income year.

A fund may be entitled to a tax offset for exploration credits received during the income year if it was an Australian resident for the whole of the income year.

The amount of the tax offset is the total value of exploration credits the fund received in the income year. However, special rules may apply where the fund has received exploration credits from a partnership or a trust.

#### T5 Tax payable

Show at T5 the amount of tax payable after the amount at E has been offset against the amount at T2.

T5 cannot be less than zero.

T5 is mandatory. You must include an amount at T5 even if it is zero (if zero write 0).

Work out the amount at T5 as follows:

• if the amount at E is less than the amount at T2 (see example 8a)
• 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 8b)
• take T2 away from E
• write the result at I
• write 0 (zero) at T5.

##### Example 8: Calculating T5 subtotal

Example 8a: Applying E Refundable tax offsets when B Gross tax is greater than tax offsets (this is a payable position)

Dark Red Superannuation Fund has the following amounts entered into its fund 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 Tax offset refunds (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 (write 0 at 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 amount due.

Example 8b: Applying E Refundable tax offsets when B Gross tax is less than offsets (this is a refundable position)

Light Red Superannuation Fund has the following amounts entered into its fund 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 Tax offset refunds (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 \$850 (K) from the \$300

S will show a \$2,090 refundable amount.