• 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

    Take C Non-refundable non-carry-forward tax offsets away from B Gross tax.

    If the answer is:

    • positive, write the answer at T2
    • zero or negative, write 0 at T2.

    If the non-refundable non-carry forward tax offsets are greater than the gross tax, the excess cannot be carried forward and is lost.

    Example: Calculating T2 SUBTOTAL
    (non-refundable non-carry-forward tax offsets greater than gross tax)

    SMSF T2 is a complying SMSF with excess non-refundable non-carry- forward tax offsets. It writes the following amounts in its 2015 SMSF annual return:

    Section D: Income tax calculation statement

    Amount not used
    in calculation

    Amount used
    in calculation

    B Gross tax

     

    $2,000

    C2 Rebates and tax offsets

    $2,500

     

    C Non-refundable non-carry forward tax offsets

     

    $2,500

    T2 Subtotal

    $0

    SMSF T2 has more non-refundable non-carry-forward tax offsets ($2,500) than gross tax ($2,000).

    SMSF T2 uses its non-refundable non-carry-forward tax offsets of $2,000 to reduce its gross tax to $0 at T2 Subtotal. It loses the remaining non-refundable non-carry-forward tax offsets ($500).

    Example: Calculating T2 SUBTOTAL
    (non-refundable non-carry-forward tax offsets less than gross tax)

    SMSF T2 is a complying SMSF. Its non-refundable non-carry-forward tax offsets are less than its gross tax. It writes the following amounts in its SMSF annual return:

    Section D: Income tax calculation statement

    Amount not used
    in calculation

    Amount used
    in calculation

    B Gross tax

     

    $2,175

    C2 Rebates and tax offsets

    $675

     

    C Non-refundable non-carry-forward tax offsets

     

    $675

    T2 Subtotal

    $1,500

    SMSF T2 uses its $675 non-refundable non-carry-forward tax offsets against its $2,175 gross tax. The amount it enters at T2 Subtotal is $1,500 ($2,175 – $675).

    End of example
    Last modified: 15 Jan 2016QC 44344