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  • T5 Tax payable

    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

    Is the amount at T2 Subtotal more than the amount at E Refundable tax offsets?

    No

    Write 0 at T5.

    Take T2 Subtotal away from E Refundable tax offsets.

    Write the result at I Tax offset refunds.

    Yes
    • Take E Refundable tax offsets away from T2 Subtotal.
    • Write the result at T5.

     

    T5 is mandatory. If you leave T5 blank, you will have specified a zero amount.

    Example: Calculating T5 Subtotal (refundable tax offsets less than T2)

    SMSF T5 has no excess refundable tax offsets. 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

    T2 Subtotal

     

    $1,500

    E1 Complying fund's franking credits tax offset

    $500

     

    E Refundable tax offsets

     

    $500

    T5 Tax payable

    $1,000

    I Tax offset refunds

    $0

    SMSF T5 takes the $500 refundable tax offsets away from its T2 Subtotal of $1,500. The amount at T5 Tax payable is $1,000 (that is, $1,500 – $500).

    End of example

    Example: Calculating T5 Subtotal (refundable tax offsets greater than T2)

    SMSF T5 writes the following amounts in its SMSF annual return:

    Section D: Income tax calculation statement

    Amount not used in calculation

    Amount used in calculation

    T2 Subtotal

     

    $1,500

    E1 Complying fund's franking credits tax offset

    $2,000

     

    E Refundable tax offsets

     

    $2,000

    T5 Tax payable

    $0

    I Tax offset refunds

    $500

    SMSF T5 has more refundable tax offsets ($2,000) than tax (T2 Subtotal $1,500).

    SMSF T5 uses the refundable tax offsets of $2,000 to reduce the tax to $0, which it writes at T5 Tax payable.

    SMSF T5 writes the remaining refundable tax offset ($500) at I Tax offset refunds and this is available as a credit amount in the overall calculation.

    End of example
    Last modified: 13 Feb 2019QC 44344