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  • D1, D2, D Non-refundable carry forward tax offsets

    Non-refundable carry forward tax offsets reduce any remaining tax at T2 Subtotal 1. If the total of the 'non-refundable carry forward' tax offsets is greater than the remaining tax at T2, the excess may be carried forward to a future income year. If the SMSF's gross tax is greater than the total of non-refundable carry forward tax offsets, the remaining tax is shown at T3 Subtotal 2.

    D1 Early stage venture capital limited partnership (ESVCLP) tax offset

    An SMSF may be entitled to the ESVCLP tax offset if it contributed to an ESVCLP that became unconditionally registered on or after 7 December 2015.

    Is the SMSF entitled to the ESVCLP tax offset?

    No

    Leave D1 blank. Go to D2.

    Yes

    Read on.

    If the SMSF is a limited partner of the ESVCLP, the SMSF's ESVCLP tax offset is limited to 10% of the lesser of the following:

    • the SMSF's total contributions to the ESVCLP during the income year (certain exclusions apply), and
    • the SMSF's share (based on the SMSF's share in the entire capital of the ESVCLP at the end of the income year) of the sum of eligible venture capital investments made by the ESVCLP during the income year and within two months after the end of the income year.

    If the SMSF is a member of a partnership or a trust which is itself a limited partner of an ESVCLP, the partnership or the trustee of the trust will provide the SMSF with details of the SMSF's ESVCLP tax offset.

    Write the total amount of the ESVCLP tax offsets at D1.

    For more information, see ESVCLP tax incentives and concessions.

    Legislation

    Subdivision 61-P of the Income Tax Assessment Act 1997External Link

    D2 Early stage investor tax offset

    An SMSF may be entitled to claim the early stage investor tax offset for the income year if it invested in a qualifying early stage innovation company during the year.

    To qualify for this tax offset there are requirements that need to be satisfied by the investor and by the early stage innovation company.

    Is the SMSF entitled to the early stage investor tax offset?

    No

    Leave D2 blank. Go to D.

    Yes

    Read on.

    Step 1: Work out the total amount the SMSF paid for newly issued shares in qualifying early stage innovation companies during the year.

    If the requirements of the 'sophisticated investor' test under the Corporations Act 2001 are not met for at least one of the investments made in a qualifying early stage innovation company during the year, the Step 1 amount must not exceed $50,000. If the step 1 amount exceeds $50,000 the SMSF cannot claim this offset.

    Step 2: Multiply the Step 1 amount by 20%.

    Step 3: Identify the SMSF's entitlements to any early stage investor tax offsets as a beneficiary of a trust or a partner in a partnership that has invested in a qualifying early stage innovation company during the year.

    The trustee of the trust or the partnership will provide a written notification of any entitlement. If a written notification has not been provided, contact the trustee or partnership. .

    Step 4: Aggregate the amounts at step 2 and step 3 and include this amount at D2.

    The maximum amount of this offset (including affiliates) is $200,000 in an income year (or $10,000 if the requirements of the 'sophisticated investor' test are not met and your investments in any ESICs in the year do not exceed $50,000 in total').

    For more information on the early stage investor tax offset and the eligibility requirements, see Tax incentives for early stage investors.

    Legislation

    Subdivision 360-A of the Income Tax Assessment Act 1997External Link

    D Non-refundable carry forward tax offsets

    Write at D the total of D1 Early stage venture capital limited partnership tax offset and D2 Early stage investor tax offset. If you did not write an amount at D1 or D2, leave D blank.

    Last modified: 19 Feb 2018QC 51269