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  • T2 Subtotal 1

    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 1
    (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 2017 SMSF annual return:

    Calculation of T2 Subtotal 1 (offsets greater than gross tax)

    Section D: Income tax calculation statement

    Amount used in calculation

    B Gross tax

    $2,000

    C Non-refundable non-carry forward tax offsets

    $2,500

    T2 Subtotal 1

    $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 1. It loses the remaining non-refundable non-carry forward tax offsets ($500).

    End of example

     

    Example: Calculating T2 SUBTOTAL 1
    (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:

    Calculation of T2 Subtotal 1 (offsets less than gross tax)

    Section D: Income tax calculation statement

    Amount used in calculation

    B Gross tax

    $2,175

    C Non-refundable non-carry forward tax offsets

    $675

    T2 Subtotal 1

    $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 1 is $1,500 ($2,175 − $675).

    End of example
    Last modified: 19 Feb 2018QC 51269