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Calculation statement labels I, K and S

Last updated 17 January 2023

Instructions to complete the labels I, K and S of the calculation statement.

I – Tax offset refunds (remainder of refundable tax offsets)

Complete I as it is mandatory.

Write at I the remaining amount (if any) of refundable tax offsets from E. Include an amount at I even if it is zero (if zero write 0).

If you have an excess amount of refundable tax offsets remaining from E that was not able to be offset against T3, you must write this amount at I.

If the complete amount at E has been offset against T3, that is, there is no refundable tax offset amount remaining, you must write zero (0) at I.

K – PAYG instalments raised

Write at K the total of the company’s PAYG instalments reported for the income year of the tax return.

Include in K the amounts the company reported at 5A on its activity statements, reduced by any credits it claimed at 5B.

To ensure the company receives the correct amount of credit for its PAYG instalments, make sure all of its activity statements are lodged before its income tax return is lodged. Lodge any outstanding activity statements, even if the company has paid the instalments or had nothing to pay.

The company is entitled to a credit for its PAYG instalments even if it has not actually paid a particular instalment. However, the company will be liable for the general interest charge on any outstanding instalment for the period from the due date for the instalment until the date it is fully paid.

K is only to be used for the monthly, quarterly or annual instalments raised during the financial year. The amount recorded at K must not include ‘wash up’ or residual payments.

Consolidated or MEC groups

After the head company of a consolidated group or MEC group lodges its first income tax return, we calculate a consolidated instalment rate for the group based on the head company’s income tax return. Once the head company of the consolidated group or MEC group obtains this consolidated instalment rate, the group is considered to be a mature group for PAYG instalment purposes (‘mature group’). The head company of a mature group will be the only entity in the group that will be liable to pay PAYG instalments for the group’s income year.

If the consolidated group or MEC group is a mature group for the entire income year, write at K the total amount of instalments payable by the head company of the consolidated group or MEC group for the income year.

The period from the chosen date of consolidation through to the instalment period in which the head company matures is known as the 'formation period'. During the ‘formation period’, each member of the consolidated group or MEC group must continue to calculate their instalment income as if they were not members of the consolidated group or MEC group and each will continue to be individually liable for their PAYG instalments.

The head company of a mature group is entitled to claim a credit for its own instalments plus any subsidiary member's instalments that are attributable to the period during which the subsidiary was a member of the consolidated group.

A subsidiary member lodging a return due to one or more non-membership periods is entitled to claim any of its instalment credits not claimed by the head company.

When an entity (a ‘joining entity’) joins a mature group, the single entity rule ensures that the joining entity’s PAYG instalment obligations will generally cease from the beginning of the instalment period that starts after the date of joining.

When an entity (an 'exiting entity') leaves a mature group, it will be given the instalment rate that the head company had during the instalment period in which it exits the group and it will have to report and pay instalments from the exiting instalment period onwards. The single entity rule ensures that the exiting entity only has a liability for reporting instalment income from the date that it exits the consolidated group or MEC group.

A joining entity may be required to lodge an income tax return for any non-membership periods during the income year in which it joins a consolidated group or MEC group. In the joining entity’s income tax return for its non-membership periods, write at K the total of instalments payable by it. This sum is the total of the amounts included at 5A of all activity statements for the joining entity’s non-membership periods.

S – Amount due or refundable

Write at S the balance of tax payable (+) or refundable (−).

For the amount at S, add T5 and G, and then subtract HI and K.

If the amount at S is positive, that amount is payable by the company.

If the amount at S is negative, that amount is refundable to the company.

The amount at S does not take into account any interim or voluntary payments the company has made against its income tax liability for the year of this return. If the company has made such payments, take these into account in calculating the company’s final payment, but do not show the amounts on this tax return.

For more information, see How to pay.

Do not send the company’s payment with the Company tax return 2022.

Continue to: Declarations

QC