• T3 Subtotal 2

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

• 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 2019 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 offsets (\$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.

End of example

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