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T2 Subtotal 1

Last updated 29 March 2021

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 2018 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

QC55254