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  • T3 Subtotal 2

    Take D Non-refundable carry forward tax offsets away from T2 Subtotal 1.

    If the answer is:

    • positive, write the answer at T3
    • zero or negative, write 0 at T3.

    If the non-refundable carry forward tax offsets are greater than the subtotal at T2, the excess may be carried forward and applied in a later income year.

    Example: Calculating T3 Subtotal 2
    (non-refundable carry forward tax offsets greater than T2 Subtotal 1)

    SMSF T3 is a complying SMSF with excess non-refundable carry forward tax offsets. It writes the following amounts in its 2017 SMSF annual return:

    Calculation of T3 Subtotal (offsets greater than amount at T2 Subtotal 1)

    Section D: Income tax calculation statement

    Amount used in calculation

    T2 Subtotal 1

    $2,000

    D Non-refundable carry forward tax offsets

    $2,500

    T3 Subtotal

    $0

    SMSF T3 has more non-refundable carry forward tax offsetr ($2,500) than its T2 Subtotal 1 ($2,000).

    SMSF T3 uses its non-refundable carry forward tax offset of $2,000 to reduce its T2 Subtotal 1 to $0 at T3 Subtotal. It may carry forward the remaining non-refundable carry forward tax offset ($500) to the next income year.

    Example: Calculating T3 Subtotal
    (non-refundable carry forward tax offsets less than amount at T2 Subtotal 1)

    SMSF T3 is a complying SMSF. Its non-refundable carry forward tax offsets are less than its T2 Subtotal 1. It writes the following amounts in its SMSF annual return:

    Calculation of T3 Subtotal (offsets less than amount at T2 Subtotal 1)

    Section D: Income tax calculation statement

    Amount used in calculation

    T2 Subtotal 1

    $2,175

    D Non-refundable carry forward tax offsets

    $675

    T3 Subtotal

    $1,500

    SMSF T3 uses its $675 non-refundable carry forward tax offsets against its $2,175 T2 Subtotal 1. The amount it enters at T3 Subtotal is $1,500 ($2,175 – $675).

    End of example
    Last modified: 19 Feb 2018QC 51269