• ### T2 Subtotal

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.

• 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 2016 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